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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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4 0
3 years ago
Disadvantages of starting a business as an entrepreneur ?​
Degger [83]
Everyone might not be with you. People might be angry that if you go big you might take over there popularity. As an entrepreneur they needs lots of support and everyone might not be willing to give that support, entrepreneurs always going to have people against them. As an entrepreneur it’s takes lots of time so if you are willing to be one be PATIENT.!
4 0
2 years ago
John Walker, the Chief Executive Officer of Consolidated Industries, had a tough decision to make. He had to decide which of fou
Afina-wow [57]

Answer:

A) Diffusion of responsibility; escalation of commitment.

Explanation:

Diffusion of responsibility relates to the concept of psychology in which the individual tends to create the responsibility of some different person, because the group size is to large and then the individual thinks not to take the responsibility.

Escalation of commitments relates to the fact that an individual continues with all the previous decisions and do not alter his actions, in consideration to the current circumstances.

In the given instance, John Walker the CEO never met any of the employees of third-world nation, and therefore, he continues his decision, that this plant shall be closed as he once again do not study all the plants, but believes illogically that the close of this plant will be beneficial to company.

8 0
2 years ago
A car dealer advertises a rock-bottom price for a sports utility vehicle that usually goes for $1,000 or more. When you get to t
maria [59]

Answer:

b. bait pricing

Explanation:

Bait pricing strategy is one that is aimed at attracting customers by presenting a price that is lower than the actual value of a product. Usually the product is limited in quantity and when buyers come in they are convinced to buy something else.

This is considered an illegal means of marketing.

I'm the given instance when the customer got to the dealership the salesperson can't find that particular car on the lot, saying maybe it was sold this morning before he got in. The salesperson offers a higher-priced car.

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3 0
3 years ago
Pat's Custom Tuxedo Shop maintains its records on the cash basis. During this past year Pat's collected $43,300 in tailoring fee
Luba_88 [7]

Answer:

net income = $31,500

Explanation:

given data

collect tailoring fees = $43,300

paid expenses = $12,300

Depreciation expense=  $2,500

Accounts receivable =  $1,050

supplies increased = $4,300

liabilities increased = $2,350

to find out

accrual basis net income

solution

we get here net income by given expression that is

net income = tailoring fees - expenses paid + account receivable + supplies increased - liabilities increased - Depreciation expense .......1

put here value

net income =  $43,300 - $12,300 + $1,050 + $4,300 - $2,350 - $2,500

net income = $31,500

8 0
3 years ago
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