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dem82 [27]
3 years ago
14

12. Motor Works, Inc. has declared a $20,000 cash dividend to shareholders. The company has 5,000 shares of $15-par, 10% preferr

ed stock and 10,000 shares of $20-par common stock. The preferred stock is cumulative. How much will be distributed to the preferred and common stockholders on the date of payment if the preferred stock is $8,000 in arrears
Business
1 answer:
AlladinOne [14]3 years ago
7 0

Answer:

The $15,500 and $4,500 is distributed to the preferred and common stockholders on the date of payment.

Explanation:

For computing how much is the dividend is distributed to the preferred and common stockholder, first we have to compute them individually.

Since in the question, it is given that total cash dividend is = $20,000

and, the company has 10% preferred stock of 5,000 shares of $15 par, plus the preferred stock has an arrears of $8,000

So, the balance of preferred stock = number of share × price × rate + arrears

= 5,000 × $15 ×10% + $8,000

= $7,500 + $8,000

= $15,500

Thus, the balance of preferred stock is $155,00

And the total cash dividend is $20,000

So, for common stockholders it is equals to=

= Total cash dividend - preference stock dividend

= $20,000 - $15,500

= $4,500

Thus, the common stockholder balance is $4,500

So, the $15,500 and $4,500 is distributed to the preferred and common stockholders on the date of payment.

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Zoe Corporation has the following information for the month of March: cost of direct materials used in product $15,401,direct la
bija089 [108]

Answers:

Calculation of cost of goods manufactured:

Particulars                                                      Amount(in $)

Cost of direct material                                    $15,401

Add: Direct labour                                           $24,583

Add: Factory overhead                                   $35,335

Add: Work In process inventory, March 1      $20,021

Less: Work in process inventory, March 31   <u>$20,681</u>

Cost of goods manufactured                        <u>$74,659</u>

Calculation of Cost of goods sold:

Particulars                                                      Amount(in $)

Cost of goods manufactured                        $74,659

Add: Finished goods inventory, March 1      $24,889

Less: Finished goods inventory, March 31   <u>$27,311   </u>

Cost of goods sold                                        <u>$72,237</u>

7 0
3 years ago
You have data for compensation of employees, proprietors' income, rental income, and net interest. Can you compute national inco
qaws [65]

Answer:

Cant calculate

Explanation:

The National Income is the total amount of income accruing to a country from economic activities in a year's time. It includes payments made to all resources either in the form of wages, interest, rent, and profits. In this case, National income can not be calculated because data in corporate profits is missing .

7 0
3 years ago
Elevator pitch project
yanalaym [24]

Answer:

is this a question? maybe you could give more context.

7 0
3 years ago
ou want to buy a new sports car from Muscle Motors for $76,000. The contract is in the form of a 60-month annuity due at an APR
Len [333]

Answer:

$1510.28

Explanation:

The monthly on the purchase of new sports car can be  computed using the pmt excel function as shown below:

=pmt(rate,nper,-pv,fv)

rate is APR of 7.15% expressed in monthly terms i.e 7.15%/12

nper is the number of months that payments would last i.e 60 months

pv is the cost of the new sports car i.e $76000

fv is the balance owed after the 60th payment i.e $0

=pmt(7.15%/12,60,-76000,0)=$1510.28

8 0
3 years ago
For each of the following corporate formations, (1) write the amount of gain or loss that will be recognized by the shareholders
Maslowich

Answer:

Back Stop, Inc.

1. The amount of gain or loss that will be recognized by the company:

a. $30,000 gain

b. $80,000 loss

2. The corporation's basis in the property after the transfer:

a. $150,000

b. ($80,000)

Explanation:

1) Data and Calculations:

a. Building $150,000 Capital, Kelly $120,000 Unrealized gain $30,000

b. Unrealized loss $80,000 Capital, Kelly $80,000

2) The building contributed by Kelly is worth $150,000 for the corporation.  However, the contribution by John is worth nothing in real terms.  Instead, an unrealized loss is being suffered by the corporation.

3 0
2 years ago
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