Answer:
“Hence, the amount that must be paid to the preferred stockholders be paid prior to paying dividends to common stockholders at the end of third year = $24,000”
Explanation:
The Paid-up value of Preferred Shares = $100,000 [1,000 Shares x $100]
The Amount of Preferred Dividend per year = $8,000 [$100,000 x 8%]
The amount that must be paid to the preferred stockholders be paid prior to paying dividends to common stockholders at the end of third year
= Cumulative Preferred Dividends payable for the 2 years + Current Year Dividend
= [$8,000 x 2 Years] + $8,000
= $16,000 + 8,000
= $24,000
“Hence, the amount that must be paid to the preferred stockholders be paid prior to paying dividends to common stockholders at the end of third year = $24,000”
Answer:
No, She is not right in doing so.
Explanation:
As provided, she tries to close the books by adding all the false amounts which shall alter the balances temporarily and then after returning from vacation she will correct them, but up till vacation the accounts will not represent the true and fair view.
As per US GAAP the books shall represent true and fair view of all the transactions of the company in its accounting records, not only at the year end but even during the year.
Therefore, this will be false and unethical and will be against the compliance of US GAAP if such practice of wrong recording is done.
Answer:
The. Trader should buy the out option
Explanation:
See attached file
<u>Given:</u>
Annual demand = 410 units
Ordering cost = $41
Holding cost = $5 unit per year
<u>To find:</u>
Number of units to be ordered each time an order is placed
<u>Solution:</u>
On calculating the number of units,
Therefore, to minimize the total cost, approximately 77 units should be ordered each time an order is placed.
B. the subsidized federal loan
