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9966 [12]
3 years ago
6

Ultimate Sportswear has $100,000 of 8 noncumulative, nonparticipating, preferred stock outstanding. Ultimate Sportswear also has

$500,000 of common stock outstanding. In the company's first year of operation, no dividends were paid. During the second year, the company paid cash dividends of $30,000.
How should this dividend should be distributed ?
Business
1 answer:
andrew-mc [135]3 years ago
7 0

Answer:

Preferred dividend = $8,000

Common stock dividend = $22,000

Explanation:

The computation of dividend is shown below:-

Preferred dividend = Total shares × Total shares of Noncumulative, nonparticipating, preferred stock outstanding

= $100,000 × 0.08

= $8,000

Common stock dividend = Cash dividend - Preferred dividend

= $30,000 - 8,000

= $22,000

Therefore the Preferred dividend is $8,000 and Common stock dividend is $22,000

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3 years ago
Joe watches Wall Street Week every week. He then throws a dart at the Wall Street Journal. He buys whatever the dart hits. If he
svlad2 [7]

Answer:

The correct answer is d. none of the above.

Explanation:

The purchase decision process represents the different stages through which the individual goes from feeling the need for a product or service to its purchase. This behavior goes beyond the purchase decision itself, reaches the post-purchase behavior phase.

In this case, it may be that there are no products that replace Wall Street, and people are required to purchase it so as not to lose any benefit. Surely because of the prestige of this publication and the guarantee it gives to buyers, despite not agreeing with it, there must be a decision motivated by any other factor.

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3 years ago
Early in Ford Motor Company’s history, it offered just one car (Model T) to customers. The cars were made exactly the same way f
sergiy2304 [10]

Answer:

Production concept

Explanation:

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5 0
3 years ago
Comparative financial statements for Weller Corporation, a merchandising company, for the year ending December 31 appear below.
Margaret [11]

Answer:

Weller Corporation

Computation of the financial data for this year:

A. Earnings per share = Net Income/No. of outstanding shares

= $3,540,000/800,000

= $4.43

B. Price-earnings ratio = Market value of share / Earnings per share

= $18/$4.43

= 4.06 times

C. Dividend Payout Ratio = Dividend per share/Earnings per share

= $0.40/$4.43

= 0.09 = 9%

D. Dividend yield ratio = Dividend per share/Market price per share

= $0.40/$18

= 0.02 = 2%

E. Book value per share = Common Equity / No. of outstanding shares

= $34,880,000/800,000

= $43.60

Explanation:

a) Data and Calculations:

1. Weller Corporation Comparative Balance Sheet

(dollars in thousands)

                                                  This Year     Last Year

Assets

Current assets:

Cash                                             $ 1,280     $ 1,560

Accounts receivable, net             12,300        9,100

Inventory                                        9,700        8,200

Prepaid expenses                          1,800         2,100

Total current assets                    25,080     20,960

Long-term assets:

Property and equipment:

Land                                               6,000        6,000

Buildings and equipment, net     19,200      19,000

Total property and equipment   25,200     25,000

Total assets                              $ 50,280 $ 45,960

Liabilities and Stockholders' Equity Current liabilities:

Accounts payable                      $ 9,500    $ 8,300

Accrued liabilities                             600          700

Notes payable, short term               300          300

Total current liabilities                 10,400       9,300

Long-term liabilities:

Bonds payable                              5,000       5,000

Total liabilities                              15,400      14,300

Stockholders' equity:

Common stock                                800          800

Additional paid-in capital             4,200       4,200

Total paid-in capital                     5,000       5,000

Retained earnings                     29,880    26,660

Total stockholders' equity         34,880     31,660

Total liabilities and

stockholders' equity              $ 50,280 $ 45,960

2. Weller Corporation Comparative Income Statement

and Reconciliation (dollars in thousands)

                                                    This Year     Last Year

Sales                                            $ 79,000    $ 74,000

Cost of goods sold                        52,000       48,000

Gross margin                                  27,000       26,000

Selling and administrative expenses:

Selling expenses                              8,500        8,000

Administrative expenses               12,000        11,000

Total selling and administrative

expenses                                       20,500       19,000

Net operating income                     6,500         7,000

Interest expense                                600            600

Net income before taxes                5,900         6,400

Income taxes                                   2,360         2,560

Net income                                      3,540          3,840

Dividends to common stockholders 320            600

Net income added to  retained

earnings                                         3,220          3,240

Beginning retained earnings      26,660        23,420

Ending retained earnings        $ 29,880     $ 26,660

3. Other information:

a. Common stock, outstanding 800,000 shares

b. Interest rate on the bonds =12%.

c. Income tax rate was 40%

d. Dividend per share of common stock was $0.40

e. Market value of the company’s common stock at the end of the year was $18.

3 0
3 years ago
What kind of tax system does the United States use?​
Airida [17]

Answer:

The United States has a regressive tax system.

Explanation:

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