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aleksley [76]
3 years ago
7

The following selected amounts are available for Thomas Company.Retained earnings (beginning) $2,500Net loss 200Cash dividends d

eclared 200Stock dividends declared 200What is its ending Retained Earnings balance?a. $2,200.b. $2,300.c. $1,900.d. $2,100.
Business
1 answer:
AfilCa [17]3 years ago
4 0

Answer:

c. $1,900

Explanation:

As for the information provided, we have:

Retained Earnings opening balance = $2,500

Current year loss = $200

Balance of retained earnings after this = $2,500 - $200 = $2,300

Now, dividends are provided which shall be paid from retained earnings only.

Cash dividends are the one paid in cash.

Stock dividends are the ones which are paid by issue extra shares from retained earnings.

Thus, both are deductible from retained earnings.

Therefore, closing balance of retained earnings = $2,300 - $200 - $200 = $1,900.

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The following data have been recorded for recently completed Job 450 on its job cost sheet. Direct materials cost was $2,108. A
Deffense [45]

Answer:

Total cost= $8,606

Explanation:

Giving the following information:

Job 450:

Direct materials= $2,108

A total of 36 direct labor-hours and 234 machine-hours were worked on the job.

The direct labor wage rate is $18 per labor-hour.

The predetermined overhead rate is $25 per machine-hour.

<u>We need to calculate the total cost for Job 450:</u>

Direct materials= 2,108

Direct labor= 36*18= 648

Overhead= 234*25= 5,850

Total cost= $8,606

3 0
3 years ago
Mirembe is interested in receiving income to help save money for her grandson's college education. She is considering investing
riadik2000 [5.3K]

Answer:

D) the company does not have a legal obligation to pay dividends when promised.

Explanation:

No corporation has a legal obligation to distribute dividends to common stock shareholders, even if they make a lot of money, or they have a lot of cash available. The only thing shareholders can do to change a corporation's dividend distribution policy is to elect a new board of directors.

In Mirembe's case I doubt that she has enough money for to board to pay attention to her. If Mirembe really needs an annual return, then she should invest her money in bonds.

6 0
3 years ago
570,000. The firm will raise the $570,000 in capital by issuing $230,000 of debt at a before-tax cost of 11.1%, $20,000 of prefe
exis [7]

Answer:

WACC = 12.040%

Explanation:

WACC represents weighted average cost of all sources of financing. In the question there are three sources of finance 1) Equity 2) Preferred Stock 3) Debt.

1) Equity: The firm intends to raise $ 320,000 from equity out of total financing of $ 570,000 e.g. 56% of total financing comes from Equity. Thus multiplying the cost of equity 14.7% (given) with ratio of equity financing, we get to weighted average cost of equity of 8.253%.

2) Debt: The firm is raising $ 230,000 from debt e.g. 40% of total financing. The proportion of debt is multiplied by post tax cost of debt as the interest expense is deductible expense for tax purposes in most of the jurisdiction. Therefore we reduce the cost of debt with element of (1 - tax rate), thus we get to 8.325% = 11.1 (1 - 25%) as total cost of debt. In order to get weighted average cost of debt we multiply this post tax cost of debt with ratio of debt financing 40%, thus weighted average cost of debt is 8.325 * 40% = 3.359%

3) Preferred Stock: The firm is also raising finance from preferred stock having cost of 12.2%. Proportion of financing from preferred stock is 4% in total mix of financing, thus weighted average cost of preferred stock is 12.2% * 4% = 0.428%.

Now adding weighted average cost of all three sources of funding, we get WACC: 8.253% + 3.359% + 0.428% = 12.040%

3 0
3 years ago
The closer the smoothing constant, ALPHA, is to 0 the greater the reaction to the most recent demand the greater the dampening,
GenaCL600 [577]

Answer: the greater the dampening, or smoothing effect

Explanation:

The smoothing constant determines the level at which a forecast is influenced by previous observations. It simply determine the sensitivity of forecasts with regards to the changes in demand.

It should be noted that large values of α will lead to a scenario whereby forecasts will be more responsive to the more recent levels. On the other hand, the smaller values will result in a damping effect. Therefore, the closer the smoothing constant to α, the greater the dampening, or smoothing effect.

3 0
3 years ago
The relatively homogeneous and enduring divisions in a society, which are hierarchically ordered and whose members share similar
Lynna [10]

It should be noted that the relatively homogeneous and enduring divisions in a society, which are hierarchically ordered and whose members share similar values, interests, and behavior constitute a Social classes.

<h3>What is a Social classes?</h3>

Social classes  can be regarded as the society's relatively divisions which involves member that share similar values as well as behaviors.

Learn more about Social classes at;

brainly.com/question/1065123

4 0
2 years ago
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