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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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A refrigerator used by a wholesale warehouse has a cost of $64,000, an estimated residual value of $5,200, and an estimated usef
PilotLPTM [1.2K]

Answer:

(64,000- 5,200 = 58,800).

Explanation:

Subtract your originial cost from the residual value. (64,000- 5,200 = 58,800).

3 0
3 years ago
(Numeric Entry) Suppose you put $1000 into a money market mutual fund that paid 10% a year, where interest was compounded annual
kkurt [141]

Answer:

$1100

Explanation:

Compound Interest is a multiplying effect interest , in which interest for each successive period  is calculated on (Principal + Interest) of each preceeding period .

Formula :  A = P(1+r/n) power 'nt  .

r = Interest rate , t = time , n = compound in time 't' , P = Principal

A = 1000 (1+10/1) power'(1X1) = 1000 X 11 power 1' = 1000 X 11 = 1100

5 0
3 years ago
PLEASE HELP ASAP!!!! CORRECT ANSWERS ONLY PLEASE!!!!
inessss [21]
Omg! Do you do k12? Me too!
Financing is usually investing in businesses. So looking at the answers. . . 
I think it's using a credit card to pay for purchases.
If it's wrong I completely apologize! 
Hoping this helps!
8 0
3 years ago
What would happen if a supplier charged more than the market price
Yuri [45]
Equilibrium is the intersect of the two curves. The curves show you how much the producers supply and how much the consumers demand at each possible price. 

The demand curves shows that the higher the price is, the less the consumers demand. That's obvious—the consumer wants something, but not at any price. He's only willing to pay so much. If the price goes higher and higher, less and less people want to buy the good. 

The higher the price is, the more the producers can supply. This is because some producers are able to produce at lower costs; they're better and more efficient than other producers. Other producers, who produce at higher costs, would go bankrupt if they tried to produce at lower prices. But when the price goes up, even the worse producers, who have higher costs, are able to make profit. So, more producers supply to the market. 

What happens now, when the price gets lower than the equlibrium? As you can see from the chart, producers would supply less than consumers would be willing to consume at that particular price. There would be SHORTAGE. This happens when the goverment sets price ceilings (like on gas in the 30's). An opposite situation happens when there is price floor—for example minimum wage (because wages are prices too; prices of labor). In that case, there is surplus—in case of minimum wage that means surplus of labor (unemployment). 

But when the markets are free to set the price, they will quickly establish equlibrium again. The producers will see that there is a shortage. They'll realize they can set higher prices and make bigger profits. They can't set higher price than the equilibrium though, because there would be surplus and they would have their warehouses stuffed with goods noone wants to buy at that price. 

This is the Answer Am 100% sure.
3 0
3 years ago
Suppose you observe the following situation: Security Beta Expected Return Pete Corp. 1.45 .155 Repete Co. 1.14 .128 Assume thes
balu736 [363]

Answer:

Expected return on the market = 11.58%

Explanation:

MRP = Market risk premium

RFR = Risk free rate

ERM = Expected return on market

MRP = \frac{0.155-0.128}{1.45-1.14}=\frac{0.027}{0.31}= 0.0871

MRP = 8.71%

RFR = 0.155 - (1.45*0.0871) = 0.155 - 0.126295 = 0.0287

RFR = 2.87%

ERM = MRP + RFR = 8.71% + 2.87%

ERM = 11.58%

Hope this helps!

3 0
3 years ago
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