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kogti [31]
3 years ago
9

Ray Corp. declared a 5% stock dividend on its 10,000 issued and outstanding shares of $2 par value common stock, which had a fai

r value of $5 per share before the stock dividend was declared. This stock dividend was distributed 60 days after the declaration date. By what amount did Ray's current liabilities increase as a result of the stock dividend declaration?
Business
1 answer:
mars1129 [50]3 years ago
6 0

Answer: The answer is as follows:

Explanation:

We know that dividend is not a part of assets and liabilities. Stockholder's equity section includes the all types of dividend that would be divided among the share holders. Therefore, declaration of dividend is not a part of liabilities and hence, involved in the Stockholder's equity section.

∴ There will be no increase in the  Ray's current liabilities as a result of the stock dividend declaration.

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An income statement under absorption costing includes which of the following: ______________
ra1l [238]

Answer:

a. Direct materials

b. Direct labor

c. Variable overhead

d. Fixed overhead

Explanation:

The absorption costing is the costing in which the income statement should includes all types of production cost i.e. direct material cost, direct labor cost, variable overhead and the fixed overhead

So as per the given statement, all the four types of costing should be involved while preparing the income statement under the absorption costing

Hence, all 4 options should be considered

4 0
3 years ago
The typical family on the Planet Econ consumes 10 pizzas, 7 pairs of jeans, and 20 gallons of milk. In 2016, pizzas cost $10 eac
grin007 [14]

Answer:

decreased by 4.5%

Explanation:

A family consumes: 10 pizzas, 7 pairs of jeans, and 20 gallons of milk.

In 2016, pizzas cost $10 each, jeans cost $40 per pair, and milk cost $3 per gallon.

The family's total cost of living in 2016 is:

C_{2016} = 10*\$10 +7*\$40 +20*\$3\\C_{2016} = \$440

In 2017, pizzas cost $8 each, jeans cost $40 per pair, and milk cost $3 per gallon.

The family's total cost of living in 2017 is:

C_{2017} = 10*\$8 +7*\$40 +20*\$3\\C_{2016} = \$420

The change, in percentage, of a typical family's cost of living is:

R=\frac{C_{2017}-C_{2016}}{C_{2016}} \\R=\frac{420-440}{440} \\R=0.045\ or\ 4.5\%

The cost of living decreased by 4.5%

5 0
3 years ago
Following a self improvement plan takes a lot of discipline.<br> a. True<br> b. False
BARSIC [14]
The correct answer is B). True , this is true because trying to train yourself to do something is very hard , this is a fact because we all have something that distracts us believe it or not.

Planning to self improve your actions or thinking can be quite tricky due to daily habits and hobbies.

I hope this helps you.  
8 0
3 years ago
Read 2 more answers
Quad Enterprises is considering a new three-year expansion project that requires an initial fixed asset investment of $2.3 milli
laiz [17]

Answer:

a)

MACRS 3 year depreciation schedule

33.33% x $2,300,000 = $766,590

44.45% x $2,300,000 = $1,022,350

14.81% x $2,300,000 = $340,630

carrying value at end of year 3 = $170,430

net after tax cash flow from salvage value = $210,000 - [($210,000 - $170,430) x 22%] = $201,294.60

cash flows:

year 0 = -$2,300,000 - $270,000 = -$2,570,000

year 1 = [($1,720,000 - $628,000 - $766,590) x 0.78] + $766,590 = $1,020,410

year 2 = [($1,720,000 - $628,000 - $1,022,350) x 0.78] + $1,022,350 = $1,076,677

year 3 = [($1,720,000 - $628,000 - $340,630) x 0.78] + $340,630 + $201,294.60 + $270,000 = $1,397,993

b)

NPV = $297,794, and IRR = 16.12%

6 0
3 years ago
A ____ is a document from a bank guaranteeing that a seller will receive payment in full as long as certain delivery conditions
Katen [24]

Answer:

Letter of Credit is the correct answer.

Explanation:

7 0
2 years ago
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