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Kobotan [32]
3 years ago
7

Candela Company has retained earnings of $500,000, common stock of $400,000, and total common stockholders’ equity of $1,200,000

. It has 200,000 shares of $2 par value common stock outstanding which is currently selling for $5 per share. If Candela Company declares a 2-for-1 stock split on its common stock, what will the effect on total common stockholder's equity?
Business
1 answer:
bogdanovich [222]3 years ago
8 0

Answer:

Total common stockholder's equity will not be effected after the stock split. In other words, it remains at the total of $1,200,000.

Explanation:

Since this is the stock-split transaction, the total common equity does not change.

What has been changed after the stock split is the increase of outstanding share of the company and the decrease par value of their common share. The change is proportionate in the way that total value of the company common stock's related account remain the same.

In this question, since the stock slit is 2-for-1, par value decreases by one-half and outstanding common share increases double.

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The macro environment represent the different external stakeholders who may be indirectly connected to the company

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5 0
3 years ago
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creativ13 [48]

Answer:

Callie's Gross Profit is $562000

Explanation:

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It is the profit from the trading section of the business before deducting the operating and financing expenses of the business and before adding any other income.

The gross profit is simply calculated as follows,

Gross Profit = Net Revenue - Cost of Goods Sold

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6 0
3 years ago
Josh is an HR Manager at RoxCom LLC. He is responsible for conducting performance appraisals for all entry-level employees in hi
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Answer:

Development of perfomance standards.

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3 0
3 years ago
The kitchen workers at Joe's Coffee Shop and Bakery report directly to Sue, the kitchen manager. Sue is a ________ manager.
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5 0
2 years ago
The IMF projects that​ China's real GDP per person will be​ 57,163 yuan in 2017 and​ 60,334 yuan in 2018 and that​ India's real
erica [24]

Answer: India / 11.1years

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India's GDP will increase or double than that of China's, because is has a larger income than that of China.

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3 years ago
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