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Alik [6]
3 years ago
9

Windsor, Inc. has had 4 years of net income. Due to this success, the market price of its 350,000 shares of $5 par value common

stock has increased from $12 per share to $52. During this period, paid-in capital remained the same at $4,410,000. Retained earnings increased from $1,740,000 to $12,700,000. President E. Rife is considering either a 16% stock dividend or a 2-for-1 stock split.
1. Show the before-and-after effects of each option on retained earnings.


a. Retained earnings after stock dividend:________ $

b. Retained earnings after stock split:_______


2. Show the before-and-after effects of each option on total stockholders' equity.


a. Total stockholders' equity after stock dividend:_______ $

b. Total stockholders' equity after stock split:________
Business
1 answer:
kvasek [131]3 years ago
6 0

Answer:

1.

a.

$9,788,000

b.

$12,700,000

2.

a.

$18,860,000

b.

$18,860,000

Explanation:

Stock dividend is the payment of dividend to stockholder in the form of stock/shares of the company. Stock are issued at the market price and the value of the dividend is transferred from the retained earning to the add-in-capital accounts.

Stock Dividend = 350,000 x 16% x $52 = $2,912,000

Stock split increase the numbers of shares with a specific given ratio but the common equity value remains same that's why the par value of the share decreases with respective ratio.

Stock Split = 350,000 x 2 / 1 x $5/2 = $1,750,000

Total Stockholders equity section includes the paid in capital of common and preferred stocks, additional paid in capital, retained earnings and reserves accounts.

Total Stockholders equity

Common Stock                      $1,750,000

Paid In Capital account         $4,410,000.

Retained Earning                   <u>$12,700,000</u>

Total Stockholder's Equity    <u>$18,860,000</u>

1.

a.

Retained Earning = $12,700,000 - $2,912,000 = $9,788,000

b.

NO change in retained earning after stock split. Stock split only changes the outstanding numbers of shares and par value of the share.

2.

a.

It will remains the same because balances are transferred from retained earnings to the common stock and paid in capital accounts but the total balance remains the same.

b.

As there is no changes to value of any equity account, so total stockholders equity will remain the same.

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Step2247 [10]

Answer:

$3,130,000

Explanation:

Net operating income = Total revenue - Total cost

Total revenue = price x quantity = $9,500 x 400 = $3,800,000

Total cost = $670,000

Net operating income = $3,800,000 - $670,000 = $3,130,000

I hope my answer helps you

3 0
3 years ago
your boss did not respond to an email you sent and then resent. when you see her in the hallway, you mention the email, and say,
Dmitrij [34]

This is an example of passive communication. You are not directly confronting your boss about the email, but you are indirectly bringing it up. This could be seen as a way to avoid conflict, or it could be seen as a way to gauge your boss's reaction to the email.

Assuming that your boss saw your email and chose not to respond is an example of an assumption. This could be due to a variety of reasons, such as your boss being busy or not wanting to discuss the matter over email. If you see your boss in the hallway, you can mention the email and ask if she would like to discuss it in person. This will give you a better idea of why she chose not to respond and whether or not she is open to talking about the matter.

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8 0
1 year ago
A leasea) Must be for at least one yearb) Conveys the right of occupancy to anotherc) Must include the landlord paying the taxes
Y_Kistochka [10]

Answer:

b) Conveys the right of occupancy to another

Explanation:

A lease is an agreement made between a lessee and a lessor for using an asset. A lessee is a user who pays to the lessor who is the owner for any asset which can be a building, property or a vehicle. The lessee owns the right to use the asset by paying to the lessor for the fixed duration. Usually, the asset put into a lease are tangible but can be intangible too.

3 0
3 years ago
equired information [The following information applies to the questions displayed below.] Three different companies each purchas
Shkiper50 [21]

Answer:

Check the explanation

Explanation:

the 2018 net income for company A, B and C

Company A:  

Depreciation expense  11250  =     (50000-5000)/4

Net income  28750  =   40000-11250

 

Company B:  

Depreciation expense  25000  =   50000*50%i.e 0.5

Net income  15000  = 40000-25000

 

Company C:  

Depreciation expense  14850 =(50000-5000)/200000*66000

Net income  25150 =40000-14850

6 0
3 years ago
The Campus Collective company, which creates unique apps for colleges, has recently lost three large university clients that mad
kirill115 [55]

Answer:

Relative wage coordination argument

Explanation:

Relative wage coordination argument states that even though workers are willing to accept wage cuts due to economic hardships. Wide implementation of wage cuts is hard because workers believe that not everyone will experience wage cuts.

So they will will fight against implementation of wage cuts.

In this scenario Campus Collective company has recently lost three large university clients that made up 40% of its total revenue. This has hit the company hard and management finds it necessary to reduce staff or wages.

Although employees are aware of the hardship they still fight against management on wage cuts because employees are also not sure if other people working their same jobs in the economy are getting reduced wages.

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