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Alexus [3.1K]
3 years ago
15

Samsonite has declared a 90% stock dividend. At the time of the declaration, Samsonite's stock was selling for $250 per share. I

f Samsonite's total market value remains unchanged by the stock dividend, then what will the new stock price be once the dividend has been enacted?
Business
1 answer:
NeTakaya3 years ago
4 0

Answer:

$131.58

Explanation:

The computation of the new stock price is shown below:

= Selling price of stock per share ÷ current number of shares

= $250 ÷ 1.90

= $131.58

Since the 90% dividend is declared. It means for each share 90% dividend is declared so after stock dividend, the number of shares would be

= 1 + 90%

= 1 + 0.9

= 1.9

We simply divide the selling price by the current number of shares

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The following is the ending balances of accounts at December 31, 2018 for the Valley Pump Corporation Account Title Cash Account
Art [367]

Answer and Explanation:

The preparation of the classified balance sheet is presented below:

<u>Valley Pump Corporation</u>

<u>Balance sheet</u>

<u>December 31, 2018</u>

Assets

Current assets

Cash                                    $30,000              

Marketable securities           $27,000

Account receivable             $61,000

Inventory                               $91,000

Prepaid expense                   $37,000

Investments

Marketable securities  $27,000

Land                               $25,000   $52,000

Property, plant & equipment

Land                           $105,000

Buildings                    $325,000

Equipment                  $85,000

Less:

Accumulated depreciation -$135,000

Net property, plant & equipment     $380,000

Intangibles

Copyright                                          $17,000

Total assets                                      $695,000

Liabilities & shareholder equity

Current liabilities

Account payable                        $70,000

Interest payable                          $15,000

Unearned revenue                     $25,000

Note payable                              $110,000

Current maturities                      $55,000

Total current liabilities                $275,000

Long term liabilities

Note payable                               $110,000

Shareholder equity

Common stock           $250,000

Retained earnings      $60,000

Total shareholder equity               $310,000

Total liabilities & shareholder equity $695,000

Working notes

Accumulated depreciation = building + equipment

= $105,000 + $60,000

= $695,000

The note payable is

= $55,000 × 2

= $110,000

6 0
2 years ago
How do short term goals differ from being long term goals
Alekssandra [29.7K]

Answer:

Explanation:

Short term goals are goals that are set for a short period of time. For instance, a goal to get your homework done. Long term goals are goals that are set for a long period of time. For instance, staying healthy and happy. Hope this helped ya! :)

7 0
3 years ago
A product-focused process is commonly used to produce "A. high-volume, high-variety products" "B.low-volume, high-variety produc
ki77a [65]

Answer: Option C  

                                                                       

Explanation: In simple words, product focused process refers to the processes that focuses on producing the batch of similar products. These processes are usually used to manufacture products like paper rolls and light bulbs.

Under this process large units are produced of a similar product. Such processes require high fixed cost and low variable cost.

From the above we can conclude that the correct option is C.

8 0
3 years ago
Last year, Linus earned a salary of $25,000 and he spent $24,000, thus saving $1000. At the end of the year, he received a bonus
Evgen [1.6K]

Answer:

0.5

Explanation:

Marginal propensity to consume is the proportion of the increase in disposable income spent on consumption.

Marginal propensity to consume = change in consumption/ increase in disposable income

$500 / $1000 = 0.5

I hope my answer helps you

8 0
3 years ago
MCO Leather Goods manufactures leather purses. Each purse requires 2 pounds of direct materials at a cost of $4 per pound and 0.
ruslelena [56]

Answer:

Direct Materials Purchases Budget Sept 51680  October  60160              

Direct labor Budget September 54600 October  66150

Overhead Budget Sept  $ 20920  October  $23,230

Explanation:

The budgets are calculated in the following ways.

We multiply the required material , direct labor hour or variable overhead rate with the given number of units and then with the cost per unit to get the total costs.

MCO Leather Goods Manufacturers

Direct Materials

<u>Purchases Budget</u>

                              September      October      November

Production              5200             6300             6100

<u>Pounds per units       *  2                 *2                    *2</u>

<u>Total Pounds           10400           12600           12200</u>

Cost per pound         * $4               * $4                   *$4

<u>Total cost                41600           50400           48800 </u>

On hand

<u>Inventory               + 10080             + 9760                 ---     </u>

Direct Materials

<u>Purchases Budget  51680           60160                     </u>

<u></u>

MCO Leather Goods Manufacturers

Direct Labor Budget

                                       September           October

Production                        5200                   6300

<u>Hours required per unit * 0.7                          *0.7</u>

Total hours                      3640                      4410

<u>Rate per hour                 * $15                           *$15</u>

<u>Total labor Cost            54600                   66150</u>

 

MCO Leather Goods Manufacturers

Factory Overhead Budget

                                       September           October

Production                        5200                   6300

<u>Hours required per unit * 0.7                         * 0.7</u>

Labor Hours                      3640                  4410

<u>Variable OH                      * $3                     *$3        </u>

<u>Variable Costs                 $10920             $13230</u>

<u>Fixed OH                        + $10,000             +$10,000</u>

<u>Total OH                          $ 20920             $23,230</u>

8 0
2 years ago
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