Question

walk me through all of these problems

Selling Stocks When you sell your stocks, the sale can result in either a profit or a loss. You profit when the sale amoun minus the sales commission is greater than the original purchase amount. Your sale results in a loss when the sale amount minus the sales commission is less than the original purchase amount NET SALE - AMOUNT OF SALE COMMISSION PROFIT - NET SALE TOTAL PAID LOSS - TOTAL PAID - NET SALES Round each answer to the nearest cent. 1. Adrain Engel owned 120 shares of Summit Oil Company stock, for which he paid a total of 88700. He sold the stock for $78 per share and paid a commission of $360. a. What was the amount of the sale? b. What was the net sale? c. What was the profit or loss from the sale? 2. Marty and Irene Benfeld purchased 300 shares of FCC International 2 years ago. They paid $7346 for the stock. Last week they sold the stock at $25.125 per share. The sales commission was 2.7%. a. What was the amount of the sale? b. What was the net sale? c. What was the profit or loss from the sale? 3. Jose Rodriguez recently sold 320 shares of stock for $44 per share. He paid a 4.3% sales commission. He purchased the stock for $0440. a. What was the amount of the sale? b. What was the net sale! c. What was the profit or loss from the sale? 4. Laura Long recently sold 45 shares of stock for $45 per share. She palda 3% sales commission. She purchased the stock for $41.50 a share and paid a 3.6% commission. a. What was the cost of the stock? b. What was the total paid? c. What was the amount of the sale! d. What was the net sale? e. What was the profit or loss from the sale? 5. You have 850 shares of North Sea Oil stock. Recently a stockbroker offered you $74.90 per share for control of the stock. You purchased the stock for $54,20 per share. You paid a commission of 2.4% when you bought the stock. You will pay a sales commission of 3.2% when you sell. What would your profit or loss be if you sold now! Unit 10.75 Copyright by Glencoe Division

Answer 1

D B D E F H к 1 2 3 a) 4 Q1 Amount of Sale = No of Shares * Selling Price Per Share = 120 * $78 = $9360 5 6 7 8 b) 9 10 Net Sale = Amount of Sale - Commission Paid = $9360 - $360 = $9000 11 12 13 c) 14 Profit from the Sale = Net Sale - Total Paid = $9000 - $8700 = $300 15 16 17 18 19 a) 20 Q2 Amount of Sale = No of Shares * Selling Price Per Share = 300 * 25.125 = $7537.50 21 22 23

A B D E F G H к 23 b) 24 25 26 Net Sale = Amount of Sale - Commission Paid = Amount of Sale - (Amount of Sale * Sales Commission %) = $7537.50 - ($7537.50 * 2.7%) = $7537.50 - $203.51 = $7333.99 27 28 29 30 31 c) 32 Loss from the Sale = Total Paid - Net Sale = $7346 - $7333.99 = $12.01 33 34 a) 35 36 37 38 39 40 Q3 Amount of Sale = No of Shares * Selling Price Per Share = 320 * 44 1/4 = 320 * 44.25 = $14160 41 42 43 b) 44 45 Net Sale = Amount of Sale - Commission Paid = Amount of Sale - (Amount of Sale * Sales Commission %) = $14160 - ($14160 * 4.3%) = $14160 - $608.88 I= $13551.12 46 47 48

А B D E F G H J 49 50 c) 51 Profit from the Sale = Net Sale - Total Paid = $13551.12 -9440 = $4111.12 52 53 54 55 56 a) 57 Q4 Cost of the Stock = No of Shares * Purchase Price per Share = 45 * $41.50 = $1867.50 58 59 60 61 b) 62 63 64 Total Paid = Cost of the Stock + Commission Paid = Cost of the Stock + (Cost Paid * % of Commission) = $1867.50 + ($1867.50 * 3.6%) = $1867.50 + $67.23 = $1934.73 65 66 67 68 c) 69 70 Amount of Sale = No of Shares * Selling Price Per Share = 45 * $45 = $2025 71 = 72

A B D E F G H K L M N 0 72 73 d) 74 75 76 77 78 79 80 81 Net Sale = Amount of Sale - Commission Paid = Amount of Sale - Amount of Sale Sales Commission %) = $2025 - ($2025 * 3%) = $2025 - $60.75 = $1964.25 e) Profit from the Sale = Net Sale - Total Paid = $1964.25 - $1867.50 = $96.75 82 83 84 85 86 87 88 89 Q5 Profit from the Sale = Net Sale - Total Paid = [Amount of Sale - Commission Paid] - [Cost of the Stock + Commission Paid] = [Amount of Sale - (Amount of Sale Sales Commission %)] - [Cost of the Stock + (Cost Paid * % of Commission)] = [850*$74.90 - (850*$74.90*3.20%)] - [850*$54.20 + (850*$54.20*2.4%)] = [$63665 - $2037.28] - [$46070 + $1105.68] = $61627.72 - $47175.68 = $14452.04 90 91 92 93 94 95 96 97