1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
svet-max [94.6K]
3 years ago
13

On June 30, Sharper Corporation’s stockholders' equity section of its balance sheet appears as follows before any stock dividend

or split. Sharper declares and immediately distributes a 50% stock dividend.
Common stock—$10 par value, 120,000 shares authorized, 90,000 shares issued and outstanding $ 900,000
Paid-in capital in excess of par value, common stock 400,000
Retained earnings 760,000
Total stockholders’ equity $ 2,060,000
(1) Prepare the updated stockholders' equity section after the distribution is made.
(2) Compute the number of shares outstanding after the distribution is made.
Business
1 answer:
Stolb23 [73]3 years ago
5 0

Answer:

Sharper Corporation's Stockholders' Equity Section of Balance Sheet:

Common Stock:

Authorized Capital 120,000, $10 par value $0

Issued capital 90,000 at $10 par = $900,000

APIC = $400,000

Retained Earnings = $310,000

Total Stockholders' Equity = $1,610,000

2 Number of shares outstanding after the dividend distribution is 90,000 shares.

Explanation:

1. The dividend per share was calculated as follows:

50% of $10 = $5 per share

Total dividends = $5 x 90,000 = $450,000.

2. The Retained Earnings changed from $760,000 to $310,000 ($760,000 - $450,000).  Dividends are paid out of retained earnings.

3. The number of shares outstanding after the distribution of dividends did not change.  It could change if there were a stock split or some shares were repurchased under Treasury Stock.

You might be interested in
Pharrell, Inc., has sales of $602,000, costs of $256,000, depreciation expense of $62,500, interest expense of $29,500, and a ta
hjlf

Answer:

The earnings per share figure is $1.89

Explanation:

Sales of $602,000

Costs of $256,000

Depreciation expense of $62,500

Interest expense of $29,500

Tax rate of 40 percent.

-> Profit Before Tax  = Sales - Cost - Depreciation Expense - Interest expense

= $602,000 - $256,000 - $62,500 - $29,500

= $254,000

Net profit = Profit before Tax x (1 - Tax rate) = $254,000 * (1 - 40%) = $152,400

Earnings per share = (net profit - dividend paid for preferred stock)/ common stock outstanding = ($152,400-$44,500)/ 57,000

= $1.89

7 0
3 years ago
What are the macroeconomic conditions affecting the IT industry? Select "yes" for those statements that are accurate and choose
RUDIKE [14]

Answer:

a. From a political perspective, Ricoh should be aware of regulations from ITAC (Information Technology Association of Canada) who is actively promoting and supporting the expansion of the IT services industry in Canada as this move will likely impact Ricoh in many ways.   - Yes

b. From an economic perspective, Canada enjoys a strong economy with a strong GDP growth.  -  Yes

c. Low oil prices are causing turmoil in business investment in western Canada, leading to a negative impact for the economic component of the macro-environment.  -  Yes

d. A weak Canadian dollar makes the cost of importing more expensive. - No

Explanation:

  • The macroeconomic conditions that impact the business in terms of the economic growth rate. The use of GNP and GDP to measure the growth. The macroeconomic phenomenon estates the patterns and conditions from the large aspects of the economy.
3 0
2 years ago
On January 1, 2018, Dean Corporation signed a ten-year noncancelable lease for certain machinery. The terms of the lease called
ipn [44]

Answer:

With respect to this capitalized lease, Dean should record for 2018?

Anual deprecitaion $89.467,73

Interest                            $107.361

Explanation:

Present value 1342016    

Usufull Life 15    

Anual deprecitaion 89467,73333    

   

Valor del consumo (o del prestamo) $ 1.342.016    

Cuotas mensuales de plazo concedidas: 10    

Tasa de interés mensual: 8,0%    

Valor cuota mensual $ 200.000        

   

Period Payment Capital Interest Loan

   

                           1.342.016

1 200.000 92.639 107.361 1.249.377

2 200.000 100.050 99.950 1.149.328

3 200.000 108.054 91.946 1.041.274

4 200.000 116.698 83.302 924.576

5 200.000 126.034 73.966 798.542

6 200.000 136.117 63.883 662.425

7 200.000 147.006 52.994 515.419

8 200.000 158.766 41.234 356.653

9 200.000 171.468 28.532 185.185

10 200.000 185.185 14.815 0

7 0
2 years ago
In its first year of operations, Crane Company recognized $29,500 in service revenue, $6,100 of which was on account and still o
Montano1993 [528]

Answer: See explanation

Explanation:

1. Calculate the first year's net earnings under the cash basis of accounting, and the first year's net earnings under the accrual basis of accounting.

The first year's net earnings under the cash basis of accounting will be:

Service revenue = $23400

Less: Expenses = $14310

Net income = $9090

The first year's net earnings under the accrual basis of accounting will be:

Service revenue = $29500

Less: Expenses = $15500

Net income = $14000

2. Which basis of accounting (cash or accrual) provides more useful information for decision-makers?

It should be noted that the accrual basis of accounting gives decision makers more useful information. This is due to the fact that the decision makers will probably want to know the revenue and the expenses that were incurred for a particular period and every other necessary details.

8 0
2 years ago
Barry has a medical plan with a $1,200 deductible, 20% coinsurance, and a $5,000 coinsurance cap. His allowable medical expenses
Trava [24]

Based on his deductible and coinsurance cap, the amount that Barry will pay is <u>$4,560.</u>

<h3>Amount Barry will pay </h3>

Barry will have to pay the entire deductible of $1,200. The expenses that are left will then be shared between him and the insurer in a 20% - 80% ratio but he will not pay more than $5,000.

Total he will pay out of pocket is therefore:

= Deductible + ( 20% x (Medical expenses - deductible))

Solving gives:

= 1,200 + ( 20% x (18,000 - 1,200))

= $4,560

In conclusion, he will pay $4,560.

Find out more on insurance payments at brainly.com/question/25973180.

4 0
2 years ago
Other questions:
  • . If during 2005, the country of Sildavia recorded investment spending for $3 billion, government purchases for $3 billion, cons
    15·1 answer
  • Preferred stockholders: A. have the right to receive dividends only if there are enough dividends to pay the common stockholders
    5·1 answer
  • Casey is considering taking out a 30-year loan with monthly payments of $205 at an APR of 1.9%, compounded monthly, and this equ
    8·2 answers
  • A partnership set up for a specific purpose for a short period of time is known as a joint stock company. acting board of direc
    10·2 answers
  • Need answers fast comment and ill answer as fast as I can starting with who asked first
    10·2 answers
  • Ruiz co. provides the following sales forecast for the next four mounths. The company wants to end each month with ending finish
    5·1 answer
  • Corporations produce about 84 percent of the business sector output, but are only about _____ percent of the total number of bus
    5·1 answer
  • Airline companies around the world are experiencing increased costs in part due to _________.\
    14·1 answer
  • Show Me How On February 22, Stewart Corporation acquired 12,000 shares of the 400,000 outstanding shares of Edwards Co. common s
    5·1 answer
  • Because owners are only responsible for losses up to the amount they have invested in a corporation, limited liability is consid
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!