What is an asset-backed public offering?
Donald and Gloria Bowden hosted a cookout at their home in South Carolina, inviting mostly business acquaintances. Justin Parks, who was nineteen years old, attended the party. Alcoholic beverages were available to all of the guests, even those who, like Parks, were between the ages of eighteen and twenty-one. Parks consumed alcohol at the party and left with other guests. One of these guests detained Parks at the guest’s home to give Parks time to “sober up.” Parks then drove himself from this guest’s home and was killed in a one-car accident. At the time of death, he had a blood alcohol content of 0.291 percent, which exceeded the state’s limit for driving a motor vehicle. Linda Marcum, Parks’s mother, filed a suit in a South Carolina state court against the Bowdens and others, alleging that they were negligent. (See Unintentional Torts—Negligence.)
(a) The first group will present arguments in favor of holding the social hosts liable in this situation.
Rocky owns and operates Balboa's Gym located in Philadelphia. The following transactions occur for the month of October:
October 2Receive membership dues for the month of October totaling $8,500 .October 5Issue common stock in exchange for cash, $12,000 .October 9Purchase additional boxing equipment for $9,600 , paying one-half of the amount in cash and the other one-half due by the end of the year.October 12Pay $1,500 for advertising regarding a special membership rate available during the month of October.October 19Pay dividends to stockholders, $4,400.October 22Pay liability insurance to cover accidents to members for the next six months, starting November 1,$6,900 .October 25Receive cash in advance for November memberships, $5,600.October 30Receive, but do not pay, utilities bill for the month, $5,200 .October 31Pay employees’ salaries for the month, $7,300 .\begin{matrix} \text{October 2} & \text{Receive membership dues for the month of October totaling $\$ 8,500$ .}\\ \text{October 5} & \text{Issue common stock in exchange for cash, $\$ 12,000$ .}\\ \text{October 9} & \text{Purchase additional boxing equipment for $\$ 9,600$ , paying one-half of the}\\ \text{ } & \text{amount in cash and the other one-half due by the end of the year.}\\ \text{October 12} & \text{Pay $\$ 1,500$ for advertising regarding a special membership rate available}\\ \text{ } & \text{during the month of October.}\\ \text{October 19} & \text{Pay dividends to stockholders, $\$ 4,400 .$}\\ \text{October 22} & \text{Pay liability insurance to cover accidents to members for the next six}\\ \text{ } & \text{months, starting November $1, \$ 6,900$ .}\\ \text{October 25} & \text{Receive cash in advance for November memberships, $\$ 5,600 .$}\\ \text{October 30} & \text{Receive, but do not pay, utilities bill for the month, $\$ 5,200$ .}\\ \text{October 31} & \text{Pay employees' salaries for the month, $\$ 7,300$ .}\\ \end{matrix} October 2October 5October 9 October 12 October 19October 22 October 25October 30October 31Receive membership dues for the month of October totaling $8,500 .Issue common stock in exchange for cash, $12,000 .Purchase additional boxing equipment for $9,600 , paying one-half of theamount in cash and the other one-half due by the end of the year.Pay $1,500 for advertising regarding a special membership rate availableduring the month of October.Pay dividends to stockholders, $4,400.Pay liability insurance to cover accidents to members for the next sixmonths, starting November 1,$6,900 .Receive cash in advance for November memberships, $5,600.Receive, but do not pay, utilities bill for the month, $5,200 .Pay employees’ salaries for the month, $7,300 .
For Astoria Company, actual sales are $1,000,000, and break-even sales are$800,000. Compute (a) the margin of safety in dollars.
