The Gaston Company has sustained heavy losses over a period of time and conditions warrant that Gaston undergo a quasi-reorganization at December 31, 20X9. Selected balance sheet items prior to the quasi-reorganization are as follows: Property, plant and equipment was recorded in the accounting records at December 31, 20X9, at $12,000,000, net of accumulated depreciation. The appraised value was $8,000,000. Stockholders' equity on December 31, 20X9, was as follows: Common stock, par value $10 per share; authorized, issued and outstanding, 700,000 shares $7,000,000 Capital in excess of par $1,600,000 Retained earnings (deficit) $(900,000) $7,700.000 Under the terms of the quasi-reorganization, the par value of the common stock is to be reduced from $10 per share to $5 per share. Immediately after the quasi-reorganization has been accomplished, the total of stockholders' equity should be

You have just been hired as a financial analyst for barrington industries. unfortunately, company headquarters (where all of the firm's records are kept) has been destroyed by fire. so, your first job will be to recreate the firm's cash flow statement for the year just ended. the firm had $100,000 in the bank at the end of the prior year, and its working capital accounts except cash remained constant during the year. it earned $5 million in net income during the year but paid $800,000 in dividends to common shareholders. throughout the year, the firm purchased $5.5 million of machinery that was needed for a new project. you have just spoken to the firm's accountants and learned that annual depreciation expense for the year is $450,000; however, the purchase price for the machinery represents additions to property, plant, and equipment before depreciation. finally, you have determined that the only financing done by the firm was to issue long-term debt of $1 million at a 6% interest rate. what was the firm's end- of-year cash balance? recreate the firm's cash flow statement to arrive at your answer

Determine if the following statements are true or false. an increase in government spending can crowd out private investment. an improvement in the budget balance increases the demand for financial capital. an increase in private consumption may crowd out private investment. lower interest rates can lead to private investment being crowded out. a trade balance in sur+ increases the supply of financial capital. if private savings is equal to private investment, then there is neither a budget sur+ nor a budget deficit.

Pam is a low-risk careful driver and fran is a high-risk aggressive driver. to reveal their driver types, an auto-insurance company a. refuses to insure high-risk drivers b. charges a higher premium to owners of newer cars than to owners of older cars c. offers policies that enable drivers to reveal their private information d. uses a pooling equilibrium e. requires drivers to categorize themselves as high-risk or low-risk on the application form