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2 years ago

What are the effects on the accounting equation when dividends are declared and paid?

Business

1 answer:

alexandr1967 [171]2 years ago

3 0

When dividends are declared and paid, retained earnings and cash are both decreased.

Paying dividends reduces cash flow while increasing dividends. A decline in retained earnings will occur when the temporary account of dividends, which will be closed at the end of the time period (such as a year), is closed.

How Do Retained Earnings Work?

After deducting dividend payments, a company's cumulative net earnings or profits are known as retained earnings. The term "retained," which is significant in accounting, captures the fact that the corporation kept such earnings rather than paying them as dividends to shareholders.

For this reason, retained earnings increase when new profits are made and drop when a corporation either makes a profit or pays dividends.

To know more about retained earnings

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Skolits Corp. issued 10-year bonds 2 years ago at a coupon rate of 8.7 percent. The bonds make semiannual payments. If these bon

kykrilka [37]

Answer:

7.36%

Explanation:

Nper = (10-2)*2 = 16

Pmt = 1000*8.7%/2 = 43.5

Pv = -108%*1000 = -1080

Fv = 1000

YTM = Rate(Nper, pmt, -Pv, Fv)*2

YTM = Rate(16, 43.5, -1080, 1000)*2

YTM = 0.036795696 * 2

YTM = 0.073591392

YTM = 7.3591392%

YTM = 7.36%

6 0

3 years ago

MILLS ALLOCATES MANUFACTURING OVERHEAD TO PRODUCTION BASED ON STANDARD DIRECT LABOR HOURS. MILLS REPORTED THE FOLLOWING ACTUAL R

tekilochka [14]

Answer:

1. Compute the variable overhead cost and efficiency variances and fixed overhead cost and volume variances.

variable overhead cost variance = $1,000 unfavorable
variable efficiency variance = -$1,200 favorable
fixed overhead costs = $1,500 unfavorable
fixed overhead volume variance = -$100 favorable

2. EXPLAIN (as best you can) why the variances are favorable or unfavorable. Based on cost and efficiency budget standards.

variable overhead cost variance is unfavorable because actual variable overhead costs per unit are higher than budgeted.
variable efficiency variance is favorable because the company used less direct labor hours than budgeted to produce a higher amount of units (1,600 vs. 2,000).
fixed overhead costs are unfavorable because total fixed overhead costs were much higher than budgeted, but most of this variance can be explained by higher output.
fixed overhead volume variance are favorable because a higher volume was produced using less hours than budgeted.

Explanation:

Static budget variable overhead $1,200

Actual variable overhead $4,000

Static budget fixed overhead $1,600

Actual fixed overhead $3,100

Static budget direct labor hours 800 hours

Actual direct labor hours 1,600

Static budget number of units 400 units

Actual units produced 1,000

Standard direct labor hours 2 hours per unit

Actual direct labor hours 1.6 per unit

standard variable rate = $1,200 / 400 units = $3 per unit

actual variable rate = $4,000 / 1,000 units = $4 per unit

standard fixed rate = $1,600 / 800 hours = $2 per hour

actual fixed rate = $3,100 / 1,600 hours = $1.9375 per hour

variable overhead cost variance = actual costs - (standard rate x actual units) = $4,000 - ($3 x 1,000) = $1,000 unfavorable

variable efficiency variance = (actual hours x standard rate) - (standard hours x standard rate) = (1,600 × $3) − (2,000 x $3) = $4,800 - $6,000 = -$1,200 favorable

fixed overhead costs = actual overhead costs - budgeted overhead costs = $3,100 - $1,600 = $1,500 unfavorable

fixed overhead volume variance = (actual fixed rate x actual hours) - (standard rate x actual hours) = ($1.9375 x 1,600) - ($ x 1,600) = $3,100 - $3,200 = -$100 favorable

5 0

3 years ago

A ________ involves killing at least four victims at one location during one event.

Gnom [1K]

The answer to this question is Mass murder
One more aspects that needed to be filled to be considered as a mass murder is the intention. It could be considered a mass murder if the killing is purely intentional.
If the killing of four victims happen because of an accident (such as drivig a vehicle toward another and caused the deaths), then the event still not considered as a mass murder.

8 0

3 years ago

Mikey initially invested $2,400 in a company and has held this investment for 3 years. He sold the investment after 3 years for

Tanzania [10]

Answer:

499.80

Explanation:

There is no 39.6% tax bracket, the highest marginal tax is 37%. But we can assume that Mikey had to pay 39.6% in taxes which means that he is in the seventh tax bracket (highest). Since he is classified under the highest tax bracket, he will also pay the highest capital gains rate which is 20%.

Mikey's long term capital gain = $4,950 - $2,400 = $2,550

if he paid regular income taxes = $2,550 x 39.6% = $1,009.80

since he pays capital gains taxes = $2,550 x 20% = $510

That means he saves $1,009.80 - $510 = 499.80

3 0

3 years ago

Why is gdp an imperfect measurement of total production in the economy?

ra1l [238]

First of all, GDP does not include household production, production from the underground economy, intermadiate goods or intermediate servces. That is because we define GDP to be the total of all market values of all final goods and services in the country. Hence, the correct answer by the above definition cannot be d. The point of that definition is that household products cannot have a market value and that if we counted towards the GDP both the value of a Graphics Card and that of the PC, we would double count the value of the Graphics Card, thus overestimating the GDP. We see that the value of new houses are included in GDP since they need materials and services and they have a market value, so b is also excluded. Finally, we have shown that b is true but that this is a good thing and leads to a better estimate of total production; the correct answer is a. Here is an example. If there is an economy where in every house there is plenty of wood and people make wood dolls out of tradition, these dolls will not have a market value if they are kept by the people who made them. Nonetheless they are products too and everyone could just try to sell them the next day at a reasonable price; then, the GDP would get a bump out of nowhere, because it cannot account for household items or the underground economy.

8 0

3 years ago