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natulia [17]
4 years ago
11

Q 11.26: The board of directors of Testa Incorporated has decided that they would like to declare a $400,000 cash dividend at so

me point in the near future. The company currently has Retained Earnings of $2,419,000 and a Cash balance of $827,000. They also have current liabilities totaling $436,000. What is missing in order for Testa to be able to pay a cash dividend
Business
1 answer:
11Alexandr11 [23.1K]4 years ago
6 0

Answer: B. : a healthy cash reserve

Explanation:

For the company to be able to declare a Dividend, it's cash reserve needs to be healthy. For this to happen use the following formula;

Free cash balance = Available cash balance - Current Liabilities payable

= 827,000 - 436,000

= $391,000

After taking out the money that will be needed to pay the Current Liabilities, there would be an insufficient balance to pay off the Dividends of $400,000.

Their cash reserve is not healthy enough for the dividends to be declared.

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Answer:

Inside the Production Possibility Frontier.

Explanation:

PPF is a curve that shows the various combination of 2 goods that an economy produces when resources are fixed. Thus, any point or bundle inside the production possibility frontier shows inefficiency in the production while the point on the production possibility frontier shows the efficient production from the available resources. But, the point outside the PPF exhibits a non-achievable point.

8 0
3 years ago
Violations of security policies are considered to be a(n) __________ issue upon which proper disciplinary actions must be taken.
kari74 [83]

<u>Answer: </u>

Violations of security policies are considered to be a law enforcement issue upon which proper disciplinary actions must be taken.

<u>Explanation: </u>

  • The security policies put into place by the organization actually serve as the first wall of protection for the organization.
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4 0
3 years ago
_______Treasury Stock is reported on the balance sheet
Debora [2.8K]

Answer:

c. as a deduction from Stockholders’ Equity

Explanation:

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The other things i.e retained earnings, additional paid in capital is to be added as it increased the balance of the stockholder equity

Therefore in the given case, the option C is correct

5 0
3 years ago
An example of global outsourcing is seen when gap, inc uses low-cost caribbean labor to cheaply produce its clothing, and then f
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6 0
3 years ago
Apollo Corp. reported the following balance​ sheet: Cash ​$28,000 ​ Accounts payable ​$5,000 Accounts receivable ​15,000 ​ Notes
avanturin [10]

Answer:

Apollo's return on equity is 38.17%

Explanation:

The formula to compute the return on equity is shown below:

Return on equity = Net income ÷ total equity

where,

Net income = $50,000

And, the total equity is

= Common stock + retained earnings

= $10,000 + $121,000

= $131,000

Now put these values to the above formula  

So, the value would equal to

= $50,000 ÷ $131,000

= 38.17%

3 0
3 years ago
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