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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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Major Account Management is the practice of concentrating on key clients in order to develop long-term, cooperative relationships that are mutually profitable.

Understanding who makes choices, who our rivals are, and how our product affects the customer's business are all important aspects of managing major accounts. Those in management should keep refining their analytical, networking, and questioning skills.

Since success does not just happen, any important account needs to be managed. Organizing a regular review meeting with the customer, educating the account staff to better understand the customer, handling issues and managing complicated projects are all examples of managing. When I say manage, I mean performing all those actions that make things run smoothly. We will significantly boost our chances of long-term, sustainable success if we put a lot of effort into each of the account management areas and if we earn our consumers' confidence.

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2 years ago
After getting married, Joe, 32, and Melinda, 29, decide to take out life insurance policies. Joe would like a 15-year term polic
polet [3.4K]
It should be Joe and ISADORA and it should be ISADORA 37 and Joe 48
6 0
2 years ago
Net working capital increases when: Multiple Choice inventory is sold at cost. fixed assets are purchased for cash. inventory is
sashaice [31]

Answer:

d. inventory is sold at a profit

Explanation:

Net working capital increases when <u>inventory is sold at a profit</u>

Net working capital = Current Assets - Current Liabilities . Cash, Inventory and receivables are part of current assets

Hence, when inventory is sold at profit, cash received is more than decrease in inventory and hence, current asset increase and hence, working capital increases. When it is sold at cost, it remains the same. Purchase of inventory on credit will lead to same amount increase in current assets and current liabilities. Payment by customer will lead to increase in cash and decrease in accounts receivable, Hence, no impact

6 0
2 years ago
Your mayor just announced that the local unemployment rate dropped from 10.5% to 10.4% from the prior month. Evaluate the unempl
nikitadnepr [17]

Answer:

Not enough information

Explanation:

from this question, this mayor has only given us the estimated proportion of the rate of unemployment  for these months. In order to know if it is significant or not, we have to carry out other tests such as the hypothesis testing for the population proportion. But here we do not have any sample data or population data with which we can use to test this significance. The sample size is unknown so we cannot proceed to test if the claim is significant or not.

6 0
3 years ago
Callaway Golf Co. leases telecommunication equipment from Photon Company. Assume the following data for equipment lease form Pho
inessss [21]

Answer:

This lease is  regarded and classified  as Capital lease.

Explanation:

This lease is  regarded and classified  as Capital lease.

Here, Callaway Golf Co. is the body financing the leased asset but the right ownership is with Photon Company.

Now; the present value of future payment is calculated as:

Present value of future payment =[PVA 6%,5 × Annual payment ]+[PVF 6%,5 × Residual value]

=[4.46511 × 31000] +[0.74726 × 15500]

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= 150000

However the present value of minimum lease payment is equal or more than 90% fair market value ,as such we therefore conclude that this  lease is a capital lease.

3 0
3 years ago
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