Answer:
November 1, declaration of cash dividends
- Dr Retained Earnings account 7,000
- Cr Dividends Payable account 7,000
December 31, distribution of cash dividends
- Dr Dividends Payable account 7,000
- Cr Cash account 7,000
Explanation:
The cash dividends will decrease the retained earnings account, since retained earnings is an equity account, when it decreases it has to be debited.
Dividends payable account is a liability account created when the company declared the dividends and it is cancelled when the company pays the dividends.
Accurate data entry speeds the correct payment of claims and lessens the chance of federal audit. Federal audit clearinghouse operates on behalf of the office of management and budget. its primary functions includes, distributing single audit reporting packages to federal agencies, support OMB oversight and assessment of federal award audit requirements, maintain a public database of completed audits and help auditors and auditees minimize the reporting burden of complying with single audit requirements.
Answer:
B. - .
Explanation:
Shelf registration is a process that is part of regulation that a correction can evoke tomcomply with U.S. Securities and Exchange Commission (SEC) registration requirements for a new stock offering up to two years before doing the actual public offering.
Once shelf registration is complete, the only other SEC requirements revolve around standard reporting.
Answer:
Ford's weighted average cost of capital is 8.22 %
Explanation:
Weighted Average Cost of Capital (WACC) is the minimum return that the company expect from a project. It shows the risk of the company.
Calculation of WACC
WACC = Cost of equity + Cost of preferred stock + Cost of debt
Capital Source Market Values Weight Cost Total Cost
equity $ 7 billion 29.17% 13.6% 3.97 %
preferred stock $ 2 billion 8.33% 12% 1.00 %
debt $ 15 billion 62.50% 5.2 % 3.25%
Total $ 24 billion 8.22 %
Cost of equity = Risk free rate + Beta × Risk Premium
= 4% + 1.2 × 8%
= 13.6%
Cost of preferred stock = Dividend/Market Price
= $ 3/ $ 25 × 100
= 12%
Cost of debt = interest × (1- tax rate)
= 8% × (1-0.35)
= 5.2 %
Yes it can be !!!! Because of
