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dsp73
3 years ago
13

Written, Inc. has outstanding 600,000 shares of $2 par common stock and 120,000 shares of no-par 8% preferred stock with a state

d value of $5. The preferred stock is cumulative and participating. Dividends have been paid in every year except the past two years and the current year. Assuming that $366,000 will be distributed, and the preferred stock is also participating, how much will the common stockholders receive
Business
1 answer:
belka [17]3 years ago
6 0

Answer:

The common stockholders will receive $222,000.

Explanation:

The preferred stockholders will have the right over the common stockholders to receive the dividend payable to them.

In the question:

+ The dividend payable to preferred stockholders in one-year is calculated as: Share outstanding x Dividend percentage x stated value of preferred stock = 120,000 x 8% x 5 = $48,000;

+ The dividend payable to preferred stock is for 3 year ( past two years plus current year), so total dividend payable is: 48,000 x 3 = $144,000.

So, preferred stockholder will be paid $144,000 out of $366,000 dividend distributed this year.

=> Amount of dividend distributed to common stockholders = 366,000 - 144,000 = $222,000.

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During December, Far West Services makes a $2,000 credit sale. The state sales tax rate is 6% and the local sales tax rate is 2.
Leno4ka [110]

Answer:

Total sales tax payable:170, sales :2000

Explanation:

Sale price x sales tax rate = sales tax payable

2000 x .085 (6%+2.5%) = 170

it doesn’t say so I’m assuming that the 2,000 credit sale does NOT include the sales tax due.

3 0
3 years ago
Explain the difference between capital and capital goods
Phantasy [73]

Explanation:

Capital: The most important city or town of a country or region.

Capital goods: Goods that are used in producing other goods, rather than being bought by consumers

6 0
3 years ago
During its first year of operations, the McCormick Company incurred the following manufacturing costs: Direct materials, $5 per
Arturiano [62]

Answer:

$150,000

Explanation:

The computation of value of ending inventory under absorption costing is shown below:-

Total Cost per unit = Direct Material per unit + Direct Labor per unit + Variable Overhead per unit + Fixed Overhead per unit

= $5 + $4 + $3 + ( $200,000 ÷ 25,000 units)

= $5 + $4 + $3 + $8

= $20

Ending Inventory in units = Units produced - Units sold

= 25,000 - 17,500

= 7,500

Cost of Ending Inventory = Total Cost per unit × Ending Inventory units

= $20 × 7,500

= $150,000

So, for computing the cost of ending inventory we simply multiply the total cost per unit with ending inventory units.

8 0
3 years ago
A society whose economic system is engaged in the processing and control of information is called a(n):
ss7ja [257]
Postindustrial society
7 0
3 years ago
Thornbrough Corporation produces and sells a single product with the following characteristics: Per Unit Percent of Sales Sellin
AfilCa [17]

Answer:

The income will decrease by $21,000

Explanation:

Giving the following information:

Selling price $ 220

Variable expenses 44

Contribution margin $ 176

Sales in units= 7,000

Total contribution margin= 7,000*176= $1,232,000

Fixed expenses= ($901,000)

Net operating income= 331,000

Now, with the changes we calculate the new net operating income:

New sales price= $202

New fixed cost= (53,000 + 901,000)= 954,000

New unit sales= 8,000

Net operating income= 8,000*(202 - 44) - 954,000= $310,000

The income will decrease by $21,000

7 0
3 years ago
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