With their fence in place, Zack and Clint set to work landscaping yards. Since Clint did the majority of the actual landscaping and planting, he worked on the average more hours than Zack.
As the business prospered, the owners decided to each take shares of stock rather than taking cash from the business. They agreed on the stock split described here. You need to help them calculate some statistics about their business and to help them reconcile their bank account.
1. They determined that it would take $50,000 to begin the business. Zack put in twice as much money as Clint. How much money did each of the owners invest initially?
2. Here is the division of stock that Clint and Zack agreed upon.
Total Shares: 1,250
Total value of shares: $35,890
Zach received his amount of shares that were valued at $29.70 each. (Use X to represent the number of shares he received.)
Clint received his amount of shares that were valued at $27.80 each. (Use 1,250 – X to represent the number of shares Clint received.)
• How many shares did each receive?
• What is the total value of Zach’s shares?
• What is the total value of Clint’s shares?
3. Using the results you found above, determine what percent of stock each owner now has.
4. At the end of the second year in business, their accountant told them that they had realized a 15% increase in sales for the second year, a total of $50,074. What were their first year’s sales?
5. Office expenses for year one was $2,769.30. In the second year they spent $2142.19. What was the percent decrease in office expenses? Round to the nearest tenth of a percent.
6. Income on plant sales alone was $1,416.13 in the second year. Zack and Clint want to increase that income by 19% for the following year. What dollar amount of increase in plant sales will they need to meet their goal?