Answer:
The Total amount is shown in the income statement $34,240
Explanation:
The computation of the amount that should be presented in the 2020 income statement is shown below:
Dividend collected by Howdy Doody corporation (18% of $68,000) $12,240
rise in Fair value of Stock credited to the income statement ($74,000 - $52,000) $22,000
The Total amount is shown in the income statement $34,240
Answer: Advertising plays a key role in the economy (either increasing or decreasing) by providing relevant information to consumers citing what they stand to benefit when they use the product or service, also the price it's sold for.
Explanation:
Advertising could be described as displaying your product before the public for awareness, which could later lead to sales. Advertising plays a key role in the economy (either increasing or decreasing) by providing relevant information to consumers citing what they stand to benefit when they use the product or service, also the price it's sold for.
Having a brand name plays a vital role to organization; the following are some;
- A brand name gives your business a face, it's all your customers need to know about you in a moment.
- A brand name is a marketing tool your customers can use to tell others about your product.
Answer:
rely on the invisible hand of the market to reallocate resources,
Explanation:
The invincible hand was adams Smith's idea which is defined as an observable market force that helps the demand and supply of goods in a free market to attain equilibrium naturally without government intervention in the market thereby leaving the people alone to buy and sell freely among themselves . This would naturally choose type of goods to be produced and reduce resource waste by closing Down weak markets that produce less demanded products.
Answer:
Explanation:
1.
Shareholders equity = Common stock + Retained earnings
Beg. balance = Common stock+Retained earnings = 166,000 + 66,000 = 232,000
Statement of shareholder's equity
Beg balance 232,000
Issuance of common stock 56,000
Add: Net Income 46,000
Less: Dividends 11,600
End balance 322,400
Balance sheet
There is not information for preparation of balance sheet but following is the layout:
Assets:
Cash
Supplies
Prepaid rent
Land
Liabilities:
Accounts payable
Salaries
Utilities
Notes payable
Stockholder's equity:
Common stock 222,000 [166,000+56,000]
Retained earnings 112,000 [66,000+46,000]
Total 334,000
Answer:
C) ABC 5% and DEF 5.7%
Explanation:
Data provided in the question:
Purchasing Cost of Stock ABC purchased = $40 per share
Purchasing Cost of Stock DEF purchased = $35 per share
Time = 6 months
Selling price of share of ABC = $42 per share
Selling price of DEF share = $36
Dividend paid to the DEF = $0.5 each quarter i.e $0.5 twice in 6 months
Thus,
Total dividend paid to DEF = $0.5 × 2
= $1
Now,
For ABC
Total return = Selling price - Purchasing Cost
= $42 - $40
= $2 per share
thus,
Holding period return = [ Total return ÷ Purchasing cost ] × 100%
= [ $2 ÷ $40 ] × 100%
= 5%
For DEF
Total return = Selling price + Dividend received - Purchasing Cost
= $36 + $1 - $35
= $2 per share
thus,
Holding period return = [ Total return ÷ Purchasing cost ] × 100%
= [ $2 ÷ $35 ] × 100%
= 5.7%
Hence,
option C) ABC 5% and DEF 5.7%.
