Answer:
Profit arises when total sales exceed total cost for a period. Once a profit has been made, the owners of the business have a choice: Take the profit out of the business (e.g. pay a dividend to shareholders) Retain the profit in the business – either in cash or by investing the profit into new assets.
Answer:
b. $50,000 in total
Explanation:
Preference shareholders: The preference shareholders are that shareholders who receive the divided before equity shareholders
The computation of the annual dividend is shown below:
= Number of shares × price per share × rate
= 10,000 shares × $100 × 5%
= $50,000
The annual dividend for preference shareholders will be computed by applying the number of shares, the price per share, and the rate.
Answer:
Accepting the special order will reduce Toms operating income by $50,000
Explanation:
See attached file
I believe that False is the correct choice out of the answers given above.
