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3 years ago

Mirrlees Furniture earned $750,000 last year and had a 30% payout ratio. How much did the firm add to its retained earnings?

Business

1 answer:

icang [17]3 years ago

6 0

Answer:

It is $525,000.

Explanation:

If the payout ratio is 30% ,then retention rate will be 70%

Additional Retention = $750,000* 70%

=$525,000

Additional amount retained can be used for future business expansion and can also be used to buy back shares provided there is no available profitable investment project to invest in.

Here, the retention rate is very high which implies that the company has prospective investment to put the money into to generate additional returns.

Investors will therefore settle for capital appreciation resulting from increase in share price as result of additional earnings from profit plouged back into the business.

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In 2020, Quapau Products introduced a new line of hot water heaters that carry a one-year warranty against manufacturerâs defect

wariber [46]

Answer:

$18,000

Explanation:

The computation of the warranty expense for the year 2021 is shown below:

Estimated warranty expense = Actual Sales × Actual claims percentage

= $450,000 × 4%

= $18,000

We simply multiplied the actual sales with the percentage of the actual claim so that the estimated warranty expense could come and the same is shown above

6 0

3 years ago

What is the difference between an<br> architectural drafter and an architectural<br> illustrator

Tomtit [17]

Answer:

architectural drafter draw structural features and details for buildings and other construction projects while an architectural illustrator is an artist who created imagery for the design professional that accurately portray the details of an architectural project.

3 0

3 years ago

Maggie Sharrer Company borrows $88,500 on September 1, 2022, from Sandwich State Bank by signing an $88,500, 12%, one-year note.

faust18 [17]

Answer:

The accrued interest at December 31, 2022 amounts to $3,540

Explanation:

Accrued Interest = Amount borrowed × rate × Number of months/ 12

where

amount borrowed is $88,500

rate is 12%

= $88,500 × 12% × 4/12

= $3,540

The accrued interest for one year note is $3,540

Note: Number of months from September to December will be 4 months that is September, October, November and December.

8 0

3 years ago

For a normal good, if the price of a substitute good decreases then:

geniusboy [140]

Answer:

(B) the demand curve shifts leftward while the supply curve stays the same.

Explanation:

"Substitutes are goods where you can consume one in place of the other. The prices of complementary or substitute goods also shift the demand curve. When the price of a good that complements a good decreases, then the quantity demanded of one increases and the demand for the other increases. When the price of a substitute good decreases, the quantity demanded for that good increases, but the demand for the good that it is being substituted for decreases. "

Reference: Khan Academy. “Price of Related Products and Demand.” Khan Academy, Khan Academy, 2019

8 0

3 years ago

Meger Manufacturing uses the direct labor cost method for applying factory overhead to production. The budgeted direct labor cos

kiruha [24]

Answer:

The correct answer is C.

Explanation:

Giving the following information:

The budgeted direct labor cost and factory overhead for the previous fiscal year were $1,000,000 and $800,000, respectively.

Job 352A

Direct material= $32,000

Labor costs= $45,000

First, we need to calculate the predetermined manufacturing overhead rate:

Estimated manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

Estimated manufacturing overhead rate= 800,000/1,000,000= $0.8 per direct labor dollar

Now, we can calculate the total cost:

Total cost= direct material + direct labor + allocated MOH

Total cost= 32,000 + 45,000 + (0.8*45,000)= $113,000

6 0

3 years ago