Question

On February 13, Solo Inc. reacquires 50,000 shares of its $1 par value common stock at the current market price of $11. The stock was originally issued for $8. On August 22, Solo reissued the stock for $14. What is the effect of the February 13 transaction on Solo’s financial statements?

Assets decrease and equity decreases by $150,000

Assets decrease and equity decreases by $550,000

Assets decrease and equity increases by $150,000

None of these

Assets decrease and equity increases by $550,000

Answer 1

Answer:

Assest Increased

Explanation:

2 men and 3 women can do a work in 6 days

3 men and 9 women can complete the work in 3 days

Calculation:

Let the efficiency of man be M and woman be W

According to question,

(2M + 3W) × 6 = (3M + 9W) × 3

⇒ 12M + 18W = 9M + 27W

⇒ 12M – 9M = 27W – 18W

⇒ 3M = 9W

⇒ 1M = 3W

⇒ 1W = (1/3)M

⇒ 12W = {(1/3) × 12}M

⇒ 12W = 4M