The statement, "The purchase of treasury stock usually restricts the amount of retained earnings available for cash dividends." is true
.
Option a
<u>Explanation:
</u>
The stock in the bank is the term for originally sold securities that the issuing firm has retained. If a corporation sells some of its released and outstanding securities, the sale drastically alters its retained profits.
As the balance sheet show all remaining earnings and the equity fund, sums available to pay dividends drop. The price of the stock in treasury should be reduced by the retained revenues, which reduce the amounts that the business can dividend to shareholders.
Sometimes a business needs the share-earnings ratio to be improved. If a company bought out many of its own shares, it reduces the number of released and outstanding activities raises the earnings per stake in the company and makes the assets more appealing for buyers.
Answer:
$5,055,000
Explanation:
Note: <em>The full question is attached below</em>
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Particulars Amount
Cash $875,000
Accounts receivable $2,695,000
Less: Installments not due in 2021 <u>($600,000)</u> $2,095,000
[$1,200,000 - ($150,000 * 4)]
Inventory <u>$2,085,000</u>
Total of current assets <u>$5,055,000</u>
Answer:
37,000 units
Explanation:
Calculation for the number of units started during November in the department
Using this formula
Number of Units started = Units completed and transferred out + Units in ending work-in-process − Units in beginning work-in-process
Let plug in the formula
Number of Units started= 39,000 units+7,400 units − 9,400 units
Number of Units started= 37,000 units
Therefore number of units started during November in the department was 37,000 units
Answer:
$552,800
Explanation:
The computation of the total period costing under variable costing is shown below:
As we know that
Period Cost = Total Variable Selling and Administrative Cost + Fixed Manufacturing Overhead + Fixed Selling and Administrative Cost
where,
Total Variable Selling and Administrative Cost is
= Variable Selling and Administrative per unit × Unit Sold
= $9 × 8,800
= $79,200
The fixed manufacturing overhead is $297,600
And, the fixed selling and admin cost is $176,000
So, the total period cost is
= $79,200 + $297,600 + $176,000
= $552,800
Answer:
$34,000
Explanation:
To determine the year-end retained earnings balance we can use the following formula:
current retained earnings balance = last year's retained earnings balance + current net income - distributed dividends - adjustments (depreciation expense)
current retained earnings balance = $32,000 + $12,000 - $7,000 - $3,000
current retained earnings balance = $34,000