All categories

3 years ago

Cash dividends reduce the stockholders' equity in the corporation. a. True b. False

1 answer:

3 0

To answer the question above if cash dividends reduces the stockholders' equity in the corporation is letter A, TRUE, The stockholders' equity will decrease due to corporation's asset and retained earnings decreases because of the dividend. On the other the income statement wont be affected by the declaration.

You might be interested in

g On July 1, Alton Co. issued an $60,500, 10%, 120-day note payable to Seller Co. Assume that the fiscal year of Alton Co. ends

irakobra [83]

Answer:

The interest expense is $521

Explanation:

The amount of interest expense for the fiscal year is the interest expense of 31 days which ,in other words the interest incurred only in the month of July ,calculated thus:

interest expense=days in the month/360days*interest rate*loan amount

interest expense=31/360*10%*$60,500=$ 521

The interest expense for the current fiscal year rounded to the nearest dollar amount is $ 521

8 0

2 years ago

This information relates to Wildhorse Co..

noname [10]

Answer:

Wildhorse Co.’s books

Perpetual Inventory System

Date Account Dr. Cr

5 April Merchandise Inventory $28,200

Accounts/ Notes Payable $28200

Purchased merchandise from Carla Vista Company for $28,200, terms 2/10, n/30.

6 April Freight Charges $ 710

Cash $ 710

Paid freight costs of $710

7 April Equipment $ 33200

Accounts Payable $ 33,200

Purchased equipment on account for $33,200.

8 April Accounts Payable $3800

Merchandise Inventory $ 3800

Returned $3,800 of April 5 merchandise

15 April Accounts Payable $ 24,400

Purchases Discount 488

Cash $ 23,912

Paid the amount due ($28,200- $3800= $24,400)

2% of $ 24,400= $ 488

b. Payment of balance due on May 4 instead of Apr 5

4 May Accounts Payable $ 24,400

Cash $ 24,400

4 0

3 years ago

Sheridan Company had the following transactions during the quarter end:

White raven [17]

Answer:

Payment of insurance premium include in last quarter = $204,000

Explanation:

Given:

Insurance premium during the year = $816,000

Number of quarter in the year = 4

Computation of payment include in last quarter:

Payment of insurance premium include in last quarter = Insurance premium during the year / Number of quarter in the year

Payment of insurance premium include in last quarter = $816,000 / 4

Payment of insurance premium include in last quarter = $204,000

8 0

3 years ago

For this question, assume that the Phillips curve equation is represented by the following: πt − πt−1 = (m + z) − αut. Which of

likoan [24]

Answer:

Correct option is C

Explanation:

Increase in \alpha decreases πt - π(t-1) which shows decrease in natural rate of unemployment.

Phillips bend clarifies the connection between expansion rate and joblessness rate. As indicated by it there is a reverse connection between the joblessness rate and swelling rate. It implies there is an exchange off among expansion and joblessness rate.

The strategy ramifications of Phillips bend is that administration can't lessen swelling and joblessness together. It joblessness decreases, at that point the economy must acknowledge higher expansion. Then again, on the off chance that economy lessens expansion, at that point it must acknowledge higher joblessness.

When there is synchronous change in the swelling rate and joblessness rate then this is an instance of development along the short-run Phillips bend.

Then again, when either joblessness rate or swelling rate stays unaltered while different changes then it prompts moving of short-run Phillips bend.

3 0

3 years ago

As winner of a breakfast cereal competition, you can choose one of the following prizes: a. $180,000 at the end of five years. b

Stolb23 [73]

Answer:

i. Discounted cashflow equations.

a. $180,000 at the end of five years.

This is a lump sum present value/ discounted cashflow which can be calculated as;

Formula = 180,000 / ( 1 + r)^n

= 180,000/ ( 1 + 12%)^5

= $102,136.83

b. $11,400 a year forever

This is a perpetuity. The present value/ discounted cashflow of a perpetuity is calculated as;

Formula = Amount/rate

= 11,400/12%

= $95,000

c. $19,000 for each of 10 years.

This is an annuity. The formula for calculating the Present value/ discounted cashflow of an annuity is;

$Formula = Annuity * [\frac{( 1 - (1 + i)^{-n} )}{i} ]$ where i is interest rate and n is number of periods

$= 19,000 * [\frac{( 1 - (1 + 0.12)^{-10} )}{0.12} ]$

= $107,354.24

d. $6,500 next year and increasing thereafter by 5% a year forever.

This is a growing perpetuity. The present value/ discounted cashflow formula is;

= Amount / ( discount rate - growth rate)

= 6,500 / ( 12% - 5%)

= $92,857.14

ii. Choose $19,000 for each of 10 years as it has the highest present value.

7 0

3 years ago