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4vir4ik [10]
3 years ago
12

Crawford Company started the year with $60,000 in its Common Stock account and a credit balance in Retained Earnings of $44,000.

During the year, the company earned net income of $48,000 and declared and paid $20,000 of dividends. In addition, the company sold additional common stock amounting to $28,000. As a result, the amount of its retained earnings at the end of the year would be
a. $160,000
b. $72,000
c. $132,000
d. $100,00
Business
1 answer:
umka2103 [35]3 years ago
7 0

Answer:

b. $72,000

Explanation:

Retained EarningEnding Balance = Opening Balance of retained earning + net income - Dividend Declared

Retained EarningEnding Balance = $44,000 + $48,000 - $20,000

Retained EarningEnding Balance = $44,000 + $48,000 - $20,000

Retained EarningEnding Balance = $72,000

The issue of common stock will not effect retained earning account balance It will be credited to common stock account and add-in-capital common stock account.

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Mozbert is a company that manufactures and supplies wireless headsets. It started an online advertising campaign that explains t
kotykmax [81]

In the context of innovation streams,design competition is the concept that the given scenario best illustrates.

<h3><u>Explanation:</u></h3>

When similar products are sold by many different companies there lies a rivalry between the companies which is called as competition. The main aim of all the business is to gain profit and market share. The development of the marketing strategy is mainly based on the competition that exists in the market for a product. The competition that exists with the design of the products refers to the design competition.

Innovations play a major role in the Design Competition. In the given scenario, the company Mozbert advertises for its wireless headsets with the ease of its usage and the difference from the wired headsets. Beloway, another wired headset manufacturer defends himself by giving some offers and discount for retaining his customers. Thus this is explains the concept called design competition, as the competition lies between the wired and wireless headsets.  

7 0
3 years ago
17. What is the difference between a stock dividend and a stock split? As a stockholder, would you prefer to see your company de
gulaghasi [49]

Answer: The answers are provided below.

Explanation:

A stock dividend occurs when the firm uses the money that was meant to be paid to the shareholders as cash dividend to buy additional common shares for them. A stock split occurs when a firm gives two or more new shares to every existing share that an investor holds.

As an investor, I'll consider whether the aim of the company in making a stock split or issuing a stock dividend aligns with my aim of investing in the company. In a case where the aims doesn't align with mine, I'll go and invest in another firm.

A company declaring 100% dividend shows growth and also, as a stakeholder, tax may not be paid by me. Stock split gives room for small investors to invest and it also reduces share price.

4 0
2 years ago
Read 2 more answers
Powell Company began the Year 2 accounting period with $20,000 cash, $60,400 inventory, $48,600 common stock, and $31,800 retain
jekas [21]

Answer:

Explanation:

1

Dr Accounts Receivable  74600                    

   Cr Sales Revenue   74600                  

Dr Cost of Goods Sold   37900                    

    Cr  Inventory     37900                  

2

Dr Freight Out  310                    

   Cr Cash     310                  

3

Dr Sales Revenue   3880                    

   Cr Accounts Receivable   3880

Dr Inventory    1910                    

 Cr Cost of Goods Sold    1910                  

4

Dr Sales Revenue   1160                    

   Cr Accounts Receivable    1160                  

5

Dr Cash   53300                    

   Cr Accounts Receivable A/c   53300                  

3 0
3 years ago
Inferring Transactions from Financial Statements
denpristay [2]

Gap's cost of goods sold is $10,258 million and Cash paid to supplier is $10,447 million.

Let understand that Cost of good sold refers to amount of expenses incurred to produce the goods produced by a firm.

  • The formulae for deriving the Cost of Goods Sold is {Beginning Inventories + Purchases – Ending Inventories}.

  • Information given are <em>Purchased inventories $10,392, Ending inventories $2,131 and Beginning inventories $1,997</em>

<em />

Cost of goods sold = $1,997 + $10,392 - $2,131

Cost of goods sold = $10,258

  • In conclusion, the amount of Gap's cost of goods sold is $10,258

Let understand that Cash paid to accounts payable refers to net amount paid to supplier of goods.

  • The formulae for deriving the Cash paid to accounts payable is  Beginning balance for 2015 + Purchases - Ending balance for 2015

Cash paid to accounts payable = $1,181 + $10,392 - $1,126

Cash paid to accounts payable = $10,447

  • In conclusion, the amount of Gap's Cash paid to supplier is $10,447

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<em>brainly.com/question/16805564</em>

6 0
2 years ago
Lowe’s advertised a barbeque grill for $99 in its newspaper ad. When the Smith’s arrived at Lowe’s to buy the barbecue, a Lowe’s
Debora [2.8K]

Answer:

A) Lowe’s has engaged in bait and switch.

Explanation:

Bait and switch retail sales practices are considered fraud and the store can be sued for it. When a store advertises a product with a very tempting low price in order for customers to go ask for them, but doesn't even have them in stock is considered false advertisement. Everyone loves a good offer but it is illegal to attract customers using a false promotion and then switching that product for a more expensive one.

If Lowe had some of the grills in stock and still tried to convince its customers to buy a more expensive one, then that is not illegal. But the question states that Lowe didn't have any cheap grill in stock.

5 0
2 years ago
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