Answer: $2,821,932
Explanation:
No. of shares outstanding before stock dividend = 493,000
Price per share = $36
Stock dividend issued (shares issued) = 493,000 x 14% = 69,020
Value of stocks issued as stock dividend = 69,020 x $36 = $2,484,720
No. of shares outstanding after stock dividend = 493,000 +69,020 = 562,020
Cash dividend = 562,020 x 0.60 = 337,212
Total reduction in retained earnings = total value of dividend issued
= $2,484,720+$337,212
= $2,821,932
Answer:
My opinion is
Appeals court affirmed the decision.
The parol evidence rule holds. The oral agreement conflicts with expressly written terms, hence the written terms hold. The seller is liable for breach.
Explanation:
Facts
1) Buyer and seller made a written contract for seller to sell buyer wiring equipment with payment to be made over time.
2) Seller failed to provide items as contract requested, also claimed prior oral agreement with buyer for payment to be in full.
3) Buyer sued. Trial court held for buyer. Seller appealed.
Relevant Terms, Laws, and Cases
Parol evidence rule states that written contract can’t be contradicted by oral agreements made prior to the contract as legal evidence. However, oral agreements that explain contract terms are allowed
Answer and Explanation:
The computation of the purchase of fixed assets is shown below:-
March 12 Purchase of fixed assets = $274,000. This same is shown in the investing activities section of the cash flow statement in the negative sign
October 4 Sale of fixed assets = $151,000. This same is shown in the investing activities section of the cash flow statement in the positive sign
Gain on sale of the fixed asset is
= Sales Value - Cost of asset
= $151,000 - $129,000
= $22,000
This amount is shown in the operating activities section of the cash flow statement in the negative sign
Answer:
4,444.44 units
Explanation:
For the computation of Number of units to be sold to earn target profit first we need to follow some steps which are shown below:-
Selling price per unit = Sales ÷ Number of units sold
= $300,000 ÷ 5,000
= $60
Variable cost per unit = Total variable cost ÷ Number of units sold
= $180,000 ÷ 5,000
= $36
Increase in selling price = $60 × 5%
= $3
New selling price per unit = $60 + $3
= $63
New contribution margin per unit = New selling price per unit - Variable cost per unit
= $63 - $36
= $27
Number of units to be sold to earn target profit = (Fixed cost + Target profit) ÷ Contribution margin per unit
= ($90,000 + $30,000) ÷ $27
= $120,000 ÷ $27
= 4,444.44 units
