Explanation:
The journal entries are shown below:
a. Retained earning A/c Dr $3,047,320
To Paid-in capital in excess of par A/c $2635,520
To Common stock dividend distributable A/c $411,800
(Being the date of declaration is recorded)
It is computed below:
For retained earning
= 411,800 shares × $74 × 10%
= $3,047,320
For common stock, it is
= 411,800 shares × $10 × 10%
= $411,800
b. Common stock dividend distributable A/c Dr $411,800
To Common stock A/c $411,800
(Being the date of distribution is recorded)
Answer: The correct answers are a) & b). That is MARTHA, MARTHA; JANE.
Explanation: Absolute advantage exists when a party can oroduce a highe quantity of a good or product. This is the situation with Martha in her productions.
Comparative advantage on the other hand is when a party has a lower opportunity cost. This exists in both the production of quilts and chocolate chip cookies.
Answer:
190
$60
Explanation:
Equilibrium price is the price at which quantity demanded equals quantity supplied
Equilibrium quantity is the quantity at which quantity demanded equals quantity supplied
Let x = change in quantity supplied
the following equations can be derived from the question
165 + 5x = total change in quantity supplied
240 - 10x = total change in quantity demanded
At equilibrium, quantity demanded equals quantity supplied. So,
165 + 5x = 240 - 10x
collect like terms and solve for x
15x = 75
x = 5
this means that quantity supplied would have to increase 5 times : 165 + 5(5) = 190
and quantity demanded would have to decrease 5 times : 240 + 10(5) = 190
equilibrium quantity is 190
equilibrium price = $55 + 1(5) = $60
Answer:
B) 20.0%
Explanation:
2005:
Sales: 15,000,000
COGS: (12,000,000)
SG&A: <u>(500,000)</u>
EBIT 2,500,000
2006:
Sales: 20,000,000
COGS: (16,000,000)
SG&A: <u>(1,000,0000)
</u>
EBIT 3,000,000
Growth rate = ((3,000,000 - 2,500,000) / 2,500,000 ) x 100 = (500,000 / 2,500,000 ) x 100 = 20%
