Benjamin O'Henry has owned and operated O'Henry's Data
Services since its beginning ten years ago. From all
appearances, the business has prospered. In the past few
years, you have become friends with O'Henry and his wife.
Recently, O'Henry mentioned that he has lost his zest for
the business and would consider selling it for the right
price. You are interested in buying this business, and you
obtain its most recent monthly unadjusted trial balance
which follows:
O'Henry's Data Services Unadjusted Trial Balance November
30, 20XX
Cash……………………………… $9,700
Accounts receivable……………………… 7,900
Prepaid expenses………… 2,600
Furniture, fixtures, & equipment 151,300
Accumulated depreciation $15,600
Accounts payable………… 3,800
Salary payable………………
Unearned service revenue 6,700
Benjamin O'Henry, capital 137,400
Benjamin O'Henry, withdrawals 2,000
Service revenue………… 14,300
Rent expense……………
Salary expense………… 3,400
Utilities expense……… 900
Depreciation expense
Supplies expense……
Total…………………………………………. $177,800 $177,800
Revenues and expenses vary little from month to month, and
November is a typical month. Your investigation reveals
that the unadjusted trial balance does not include the
effects of monthly revenues of $2,100 and monthly expenses
totaling $2,750. If you were to buy O'Henry's Data
Services, you would hire a manager who would require a
monthly salary of $3,000.
The most you would pay for the business is 20 times the
monthly net income you could expect to earn from it.
Compute this possible price. The least O'Henry will take
for the business is his ending capital. Compute this
amount. Under these conditions, how much should you offer
O'Henry? Give your reason. I have the mathimatical part
ok , please give reasons on how much and why I they would
offer him the amount.
Recently while appraising a loan proposal I noticed that the
company was a newly formed company. While allotting the
capital among the share holders the shares were allotted at
a huge premium. What is the reason for showing a huge premium?
where will be effect the amount of depreciation in company
final account? If it will effect in P&L A/c & Balance Sheet
also than will amount be same in both sheet?
where will be effect the amount of depreciation in company
final account? If it will effect in P&L A/c & Balance Sheet
also than will amount be same in both sheet?
what is the procedure to start any company? who will fix
this share value?how to go for pulic issue?
258
i have cleared c.s inter. for the purpose of training i
want to know the companies who are providing training of
c.s in punjab state.please help me in this.
26
what is book building?
66
I am Simrat Kaur. I am persuing graduation from P.U. I have
an experience of 14 months as a CSA. But i hav an experience
letter of 6 months.But I can show my joinin letter of the
other job. I hav knowledge of basics of computer & internet.
Actually, m findin job in chandigarh. I am findin the right
opportunity. so, Can u plz help me in findin the right job??
Can u plz tel me abt where interviews r goin on?
35
how to solve the problem of sechdule date problem in sap
proframme.
when will be appsc exams will held pls give me the dates
228
Occasionally it is said that issuing convertible bonds is
better than issuing stock when the firms shares are
undervalued. Suppose that the financial manager of Decent
Furniture Company does in fact have inside information
indicating that the decent stock price is too low. Decent
furniture earnings will in fact be higher than investor’s
expectations. Suppose further that the inside information
cannot be released without giving away a valuable
competitive secret. Clearly, selling shares at the present
low price would harm Decent’s existing shareholders. Will
they also lose if convertible bonds are issued? If they do
lose in this case, is the loss more or less than it would
be if common stock is issued?
Now suppose that investors forecast
earnings accurately, but still under value the stock
because they overestimate Decent’s actual business risk.
Does this change your answer to the questions posed in the
preceding paragraph? Explain.
hi Please help me for my interview in syntel so please
guiad
14
i have cleared c.s inter. for the purpose of training i
want to know the companies who are providing training of
c.s in punjab state.please help me in this.
I want to validate Customer credit payment with customer
invoice, When billing time, the system check the customer
credit payment, if customer credit is lesser than customer
bill, system should not allow the billing further process.
Can I configure in sap
138
Information regarding shop & establishment registration of
propiertor ship & require document for this
142
I have completed by Msc in biotechnology will i be eligible
for this SBI P.O position?? or it is only for people who did
CA/CS/economics and so on...
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