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777dan777 [17]
3 years ago
12

Turquoise and Topaz Sisters had retained earnings of $10,000 on the balance sheet but disclosed in the footnotes that $2,000 of

Retained Earnings was restricted for plant expansion and $1,000 was restricted for bond repayments. Cash of $2,000 had been set aside for the plant expansion. How much of retained earnings is available for dividends?
A.$10,800
B.$14,300
C.$12,600
D.$9,100
Business
1 answer:
Over [174]3 years ago
6 0

Answer:

No option is correct, the correct answer is $7,000.

Explanation:

If Turquoise and Topaz Sisters had retained earnings of $10,000, you must subtract the amounts restricted for plant expansions and bond repayments.

$10,000 (retained earnings) - $2,000 (plant expansions) - $1,000 (bond repayments) = $7,000 available for dividends

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In December 2016, Custom Mfg. established its predetermined overhead rate for jobs produced during 2017 by using the following c
Luden [163]

Answer:

POAR= 170% of the direct material cost.

Explanation:

Explanation:

The predetermined overhead absorption rate (POAR: The overhead absorption is a rate which is used to charge overheads to production units. Note that this rate is computed using estimated figures

The rate is computed as follows:

Predetermined overhead absorption rate

POAR

= (Budgeted overhead for the period/Budgeted direct material cost)× 100

= $680,000/400,00 ×  100

= 170% of the direct material cost.

5 0
3 years ago
Ms. Tant's case was thrown out of federal court. She later filed it in the New York state court solely as a case involving Mr. B
mr_godi [17]

Answer:

No.

Explanation:

Because if any of the lower court had let her case win, then she would never have to go to the highest court that there is.

4 0
2 years ago
Capital gains may be preferred by investors over dividends even if dividends and capital gains are taxed at the same rate becaus
lawyer [7]

Answer: c. taxes on capital gains can be timed

Explanation:

Capital gains represent an appreciation in the value of a security therefore they bring in profit to the owners of that security. Capital gains are not taxed until the owner sells the security which means that these taxes can be timed by the owner who can decide to sell at specific times to reduce their tax bill.

This is different from dividends that are taxed as soon as the company declares them. The investors have no say as to the tax timing so they will prefer capital gains where they have some form of control.

6 0
2 years ago
A storage tank acquired at the beginning of the fiscal year at a cost of $90,000 has an estimated residual value of $12,000 and
MrRa [10]

Answer:

The annual depreciation under straight line method is $3,120

And under double-declining method:

Year 1 = $7,200

Year 2= $6,624

Explanation:

Please find the attached for the calculations

7 0
3 years ago
If a company's free cash flows are expected to grow at a constant rate of 5% a year, which of the following statements is CORREC
Oliga [24]

Answer:

The correct option is e. The company's value of operations one year from now is expected to be 5% above the current price.

Explanation:

Free cash flow (FCF) refers to the cash that a company generates after taking into consideration cash outflows needed to support operations and maintain the capital assets of the company.

When the free cash flow of a company is expected to grow at a certain constant rate, the implication is that the the value of operations of that company one year from the current period is expected to be higher than the current price.

Based on the explanation above, the correct option is e. The company's value of operations one year from now is expected to be 5% above the current price.

5 0
3 years ago
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