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love history [14]
3 years ago
11

Fisher Company has 1,000,000 share of common stock with a par value of $10. Additional paid-in capital totals $10,000,000 and re

tained earnings is $12,000,000. The directors declare a 6% stock dividend when the market value is $5. The reduction of retained earnings as a result of the declaration will be:
A. $0.
B. $300,000
C. $600,000
D. $500,000.
E. None of the answers are correct.
Business
1 answer:
aleksley [76]3 years ago
8 0

Answer:

B. $300,000

Explanation:

The computation of the reduction of retained earning amount is shown below:

= Number of shares of common stock × stock dividend percentage × market value

= 1,000,000 shares × 6% × $5

= $300,000

Since the dividend amount is adjusted while computing the ending balance of retained earning balance and the same is to be considered in the computation part.

All other information which is given is not relevant. Hence, ignored it

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When initiating communication in a business environment, the first step is to:
irina1246 [14]
Define the markets, people, and environments you are addressing 
6 0
2 years ago
Cinnamon Corp. started business in 2007, uses a periodic inventory system and uses the weighted average cost method. During 2007
Nesterboy [21]

Answer:

€4,883,000

Explanation:

The computation of cost of sales is shown below:-

Inventory = 35,000 ÷ €12

= 2,917 units

Weighted average cost of inventory

= (2,917 × €12) + (35,000 × €14)

=  €35,004 + €490,000

= €525,004

So weighted average cost = €525,004 ÷ €40,833.33

= €12.85

So, cost of sales = weighted average cost × sold units

= €12.85 × 38,000

= €4,883,000

3 0
3 years ago
\Why is it important to consider scholarships and grants before loans to pay for higher education?
Shalnov [3]

Answer:

Explanation:

Scholarships and grants are monies that are given to the student for education. You DO NOT have to pay them back.

Loans can also be given for education costs but you DO have to pay them back.  So, obviously, you want scholarships and grants before loans.

4 0
2 years ago
Definition of pre customer contact​
Alinara [238K]

Answer and Explanation:

As the name suggests the pre customer contact means contacting the customer before selling the product so that the firm could able to find out the requirement of the customer what he or she needs

The firm has the responsibility to provide the information about their products and services so that the customer could able to decide what he or she actually wants

After the selling the person could become the customer

8 0
3 years ago
ABC Company owns 30% of the outstanding shares of Teal Company. At the beginning of the current year, the carrying value of Teal
BabaBlast [244]

Answer:

$69,000

Explanation:

Percentage of shares owned by ABC in Teal's company = 30%

This is an example of equity method investment , and a portion of the attributable income at the end of the year is earned and added to the initial stock.

Attributable income is the remaining income after dividends have been settled.

<u>Workings</u>

The opening carrying value of the shares on ABC balance sheet = 60,000

Profit made at the end of the period = 40,000

Dividends paid = 10,000

Attributable income to share holders = 40000-10000 = 30,000

ABC portion of attributable profit = 30000*30% = 9,000

Carrying value at the end of the year = opening carrying value + portion of the attributable profit

=60000+9000=69000

6 0
3 years ago
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