Answer:
RE decrease: 1,960,000
Explanation:
Retained earnings will decrease for the total amount of the dividends.
<u>stocks dividends</u>
560,000 shares
10% stock dividends: 560,000 x 10% = 56,000 shares
56,000 x $30 = 1,680,000 stock dividends
<u>cash dividends:</u>
560,000 x 0.50 per share = 280,000 cash dividends
Total dividends: 1,680,000 + 280,000 = 1,960,000
that will be the RE decrease
Answer:
- The entries in VLC's accounting information system to record all the preceding events will include all of the following except:
C. A credit togross profit
Explanation:
An entry to Gross Profit does not exist because the gross profit it's the result of the total sales minus the Cost of Goods, so the Gross Profit it's a result and not a journal entry.
The other entries are used as follows:
A. A debit to cost of goods sold
D. A credit to inventory
B. A debit to delivery expense
A credit to Cash
Answer: d). Search costs; quality; trust
Explanation:
A strong brand can be an exceptionally powerful resource for competitive advantage by lowering search cost, proxying quality and inspiring trust. Lower search cost and high quality will provide a competitive advantage to the firm over other brands offering similar product. Inspiring trust of the consumers on the brand will enable them to get a large consumer base. If the customers have faith or trust in our brand then they will not buy other brands even if they sell at a lower price.
Thus, the correct option is d, Search costs; quality; trust
Answer:
$980,879
Explanation:
Recall that
PVAn = (CF1 / (i - g)) × [1 - ((1+g)n/ (1+i))n]
Where
CFI = 120000 × 2.5%
= 123000
i = 15%
g = 2.5%
n = 50
Thus
PVAn = ($123,000 / (15% - 2.50%)) × [1 - ((1+2.5%)50 / (1+15%))50]
= 984000 × 1 - (51.25)/(57.5)
= 984000 × 0.996828
= 980,878.752
= $980, 879
