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Strike441 [17]
4 years ago
5

All American National Company earned $240,000 last year. The board of directors decided to pay out one-half of the firm's earnin

gs to the stockholders. Before the board's decision, the firm's retained earnings were $740,000. Which of the following statements is true?a) the firm should be more profitable
b) the firms retained earnings too high

c) each shareholder will receiver more than they did last year

d) the value of the firms retained earnings is now $860,000

e) the value of the firms retained earnings is now $620,000
Business
1 answer:
NNADVOKAT [17]4 years ago
6 0

Answer:

d) the value of the firms retained earnings is now $860,000

Explanation:

If All American National Company earned $240,000 last year, and the board of directors decided to pay out one-half of the firm's earnings to the stockholders.

That implies that dividends of $120,000 will be paid out (50% x $240,000) while the balance $120,000 will be retained in the company

Hence, if before the board's decision, the firm's retained earnings were $740,000. Then thereafter, the figure will include the $120,000 that will be retained from profits after dividend payout.

$740,000 + $120,000 = $860,000

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If merchandise inventory is being valued at cost and the purchase price is steadily falling, which method of costing will yield
Anvisha [2.4K]

Answer:

The answer is LIFO

Explanation:

LIFO is Last in First out. It means the Inventory that was purchased last goes out first.

In periods LIFO, cost of sales reflects the cost of goods purchased recently and the ending Inventory reflects the older goods.

In periods of falling prices, the costs of ending inventory are high, cost of sales are low and the gross profit are high.

3 0
4 years ago
Erastic Company has $14,000 in cash, $8,000 in marketable securities, $34,000 in account receivable, $40,000 in inventories, and
rosijanka [135]

Answer:

1.33

Explanation:

Data provided in the question:

Cash = $14,000

Marketable securities = $8,000

Account receivable = $34,000

Current liabilities = $42,000

Now,

Acid Test Ratio

= (Cash + Marketable securities + Account receivable) ÷ Current Liabilities

= ( $14,000 + $8,000 + $34,000 ) ÷ $42,000

= $56,000 ÷ $42,000

= 1.33

8 0
3 years ago
If the offense passes with probability 0.42 and runs with probability 0.58 while the defense uses its pass defense with probabil
vitfil [10]

Answer:

0.08 per play

Explanation:

The computation of the gain offense average yards per day is shown below:  

=  (Probability runs - offense passes with probability) ÷ two

= (0.58 - 0.42) ÷ 2

= 0.16  ÷ 2

= 0.08 per play

Simply we consider the runs probability and the offense passes with probability so that the correct yard per play can come

All other information which is given is not relevant. Hence, ignored it

8 0
3 years ago
A life insurance policyowner would like a dividend option that results in a limited current outlay of funds. Which divident opti
yan [13]

Reduction of premium payment would be chosen.

This enables the policyholder to deduct policy dividends from the premium for the next year. Consequently, it will be simpler for the policyholder to pay her subsequent premium.

<h3>What is a dividend?</h3>

A dividend is a cash paid to you by your life insurance provider. This typically signifies that you have a participating policy contract, commonly known as a whole life insurance policy that pays dividends. You receive dividend payments from that company when it is profitable, rewarding your investment. You have the option of receiving this money through dividend options.

<h3>Converting Your Dividend Into Premium</h3>

This dividend option for life insurance is quite simple. If selected, your insurance provider will just use your payout to cover all or a portion of your yearly payment. If you select this option and your dividend is greater than your premium, you might also need to select a secondary alternative. On the other hand, you will need to make the remaining payments as usual if your dividend is less than your premium.

You must begin paying your premium on an annual basis if you decide to use your payout toward it. For instance, you would still need to pay the remaining $6,500 all at once if your annual premium was $8,000 and your dividend was $1,500. You may pay more or less of your premium each year depending on how the dividends change over time.

Learn more about reduction of premium here:

brainly.com/question/13237769

#SPJ4

7 0
2 years ago
Lina wants to be a lawyer for her future career. Which extracurricular activity would be the most helpful? teacher’s aide marchi
Aleksandr [31]
I believe your answer would be C. Speech and Debate. Being a lawyer requires lots of debate, and speech to support your answer and make it more clear. 
3 0
4 years ago
Read 2 more answers
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