Answer:
Dividend paid in current year = $6,898
Explanation:
Calculating net profit
Sales = $818,790
Less: Costs = $748,330
Less: Interest = $24,450
Less: Depreciation = $56,100
Earning before taxes = Loss (10,090)
Tax benefits = $10,090 
34% = $3,431
Net losses = $10,090 - $3,431 = $6,659
Opening retained earnings = $172,270 Less: Losses for the year = $6,659
Balance = $165,611
Less: Closing balance = $158,713 = $6,898
Thus<u> amount of dividend paid in current year = $6,898</u>
Change in value of common stock will not be considered.
Answer:
Total stockholders equity = $118,000
Explanation:
Novak Corp.
Balance sheet (stockholders' equity section)
As a December 31 20YY
Stockholders' equity
Common stock ($12 per, 5,500 share issued) = $66,000
Paid-in Capital in Excess of Par Value - Common stock = $19,000
Less: Treasury Stock (500 shares) = ($11,000)
Shares outstanding (5000 shares) = $74,000
Retained Earnings = $44,000
Total stockholders equity = $118,000
Answer:
In order to make the distribution to common shareholders, each preferred share must be paid a dividend of:
$5 per share.
Explanation:
The preferred stock is non-cumulative. This implies that XYZ's preferred stockholders are not being owed for the previous two year's dividend that was not paid. Non-cumulative preferred stock does not attract dividend arrears whenever it was not declared. It is cumulative preferred stock that attracts such arrears to be carried forward until they are paid.
Answer:
a. 1,090
Explanation:
Without any other information provided, the easiest way to answer this question is to make directly the calculations of income and costs. the logic behind this problem is to calculate all the income and substract the costs of production, in this particular case we have:
+Income: 3,250
-Cost of goods: 1,285
-Operating expenses: 875
Net Income: 1,090
A perfectly competitive firm and a monopolistic firm in the long-run equilibrium face exactly the same demand and cost curves, then they will also <u>earn zero </u><u>economic profits</u><u>, and attain the lowest possible unit costs (D).</u>
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Economic profit is the total revenue minus the total cost of a product produced by a firm. Cost in this term include the measurement of oppotunity cost.
Perfectly competitive firm is a firm in a market with many buyers and sellers and the price of products represents the equililbrium point between supply and demand. A firm in this market has almost no power to affect the product price.
In the long-run, a perfectly competitive firm will earn 0 (zero) economic profit, while earn accounting profits. This condition happens because entry and exit barriers for firms in perfect competitive market is low. Many firms can easily enter and exit the market.
Monopolistic firm is a firm in a market where many firms are producing similar but differentiated products. The entry barriers for thiis market is relatively low and the decisions of any firm do not dirrectly affecting its competitor within the market.
In the long-run, monopolistic firm will earn zero economic profits because the low entry barriers easily allows new competitors to join the market and reduce an old-player firm's demand. This condition push a firm to make its demand curve to be more elastic. Any change in the demand curve will also affecting a firm's marginal revenue curve as well. This situation then leads a firm to no-longer make an economic profit condition.
However, to ensure their sustainability in their respective markets, both firms will attain the lowes possible unit costs to earn accounting profits.
Learn more about Perfect Competition and Monopolistic Markets here: brainly.com/question/29454493
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