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lord [1]
3 years ago
15

(Cash dividends) Marshall Pottery Barn is a privately owned importer of Mexican pottery and garden supplies. The firm plans on p

aying a $1.43 per share dividend on each of its 6,000 shares of common stock. The firm's most recent balance sheet just before payment of the dividend looks like the following:
A. What would happen to the firm's balance sheet after payment of the cash dividend?
B. If the above balance sheet also represented market values (as well as book values), how would it change following the payment of the cash dividend?
A. What would happen to the firm's balance sheet after payment of the cash dividend? The accounting entry would be:
(Select from the drop-down menus and round to the nearest dollar.)
Cash 18,000
Accounts receivable 22,500
Inventories 30,700
Accounts payable 71,200
Notes payable 5,000
Current liabilities 129.800
Current assets 201,000
Long-term debt 22,200
Fixed assets 4,900
Equity 27,100
Total assets 139,900
Total 201,000
Business
1 answer:
zhannawk [14.2K]3 years ago
3 0

Answer:

A.The impact on the balance sheet after the payment of the dividends is a reduction in current asset-cash by $8580 as well as a drop in equity-specifically retained earnings by the same amount.

B.Total assets (book and market values) will decrease by $8580 and equity and liabilities on the other hand will also reduce by $8580.

A.The accounting entries in respect of the dividend payment will be :

Debit Retained earnings $8580

Credit Cash                                       $8580

Explanation:

The dividends of $1.43 gives $8580 in total i.e $1.43*6000 shares

The impact of the dividend payment will be in terms of reduction in cash available for daily operations and reduction in funds attributable to shareholders.

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For a profit with little risk, you should short the puts.

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<h3>A stock example is what?</h3>

Stock refers to a portion of a company's ownership. 100 shares of the Disney Corporation are an illustration of stock.

<h3>What exactly is a stock example?</h3>

Low risk investments are by definition safer than comparable ones. In comparison to options, stocks carry less risk. The right is the predetermined ability to acquire or sell an item at a predetermined price on a specific date.

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3 0
2 years ago
trighton's trailer co. sells all kinds of trailers and provides a one-year warranty on all new trailer sales. based on history,
matrenka [14]

At the end of the month, Trighton will record <u>$600</u> in warranty expenses.

Expenses is a term used in economics that can be described as the amount that is incurred in making a commodity or a product. These are the basic inputs that the firm has to acquire to maintain a particular product or products.

Trighton anticipates a return of 2% and will have a warranty cost of  $100 per trailer. As Victor sold 300 trailers for a total of $255,000, the total cost that would be incurred will be with respect to the anticipated return of 2% on the warranty cost and the number of the visitors or the seller have sold to the customer. Therefore the amount Trighton will record in warranty expenses is calculated as follows;

= 300 x.02 x $100

= $600

Although a part of your question is missing, you might be referring to this question:

Trighton's Trailer Co. sells all kinds of trailers and provides a one-year warranty on all new trailer sales. Based on history, Trighton anticipates that 2% of trailers will be returned and will have a warranty cost of $100 per trailer. During the month, Victor sold 300 trailers for a total of $255,000. At the end of the month, Trighton will record $____________ in warranty expense.

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4 0
9 months ago
You are giving a tour of businesses to several classical musicians from China. One of the Chinese in the tour group has asked yo
HACTEHA [7]

Answer:

Purpose of business is to increase general well being of people by selling goods and services.

Explanation:

The main purpose of business is to increase well being of people, make profits for its stakeholders and offering value for money to its customers or clients through products and or services. The products and services provided by the company should not harm its customers and clients instead these products and services should provide benefits to its users and satisfy their needs. While making profits a company should keep scarce resources in mind so the needs of the future generation is not compromised also it does not harm the environment by its poisonous wastage. Every business requires some form of investment as an input though which quality output can be provided to its customers and clients.

5 0
3 years ago
Which two items influence the success and failure of transportation businesses?
frosja888 [35]

Answer: c. Globalization and manufacturing

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Globalization could be defined as the scenario where a business develops the international audience or market it needs for its business.

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3 years ago
Explain with examples, the process of screening and evaluating new venture opportunities.
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Self-Analysis
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Financial Components
After learning about the investment required to purchase the existing business or franchise or the start-up costs you’ll need initially, evaluate your own resources. Part of a financial assessment includes the amount you have in personal savings to add to the initial investment. Banks typically require entrepreneurs to come up with a portion of the investment to show good faith and willingness to take a risk with the lender. Assess the financing available through the seller, investors and lenders when evaluating your chances of succeeding.

Market Research
To thoroughly understand what you’re getting into, perform an extensive market research project to determine the feasibility of your business. In addition to gleaning statistics of trends and current customer buying patterns, you need to know who your customers are, where they are located and what kind of competition exists in your area. Consider market research your first steps in opportunity analysis that help you understand exactly how you will sell products or services to a specific market.

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