Easy career class question..:)

A company had stock outstanding as follows during each of its first three years of operations: 2,500 shares of 10%, $100 par, cu

ad-work [718]

Answer:

See the attached photo for the completed the schedule.

Explanation:

Note: See the attached photo for the completed the schedule.

In the attach excel file, the following formulae and calculations are used:

Peferred stock dividend per share = Total cumulative preferred stock dividend paid in a year / Number of cumulative preferred shares

Common stock dividend per share = Total common stock dividend paid in a year / Number of common shares

Total cumulative preferred stock dividend = Number of cumulative preferred stock * Par value * Dividend rate = 2,500 * $100 * 10% = 2,500 * $100 * 10% = $25,000

Outstanding cumulative preferred stock dividend in Year 1 = Total cumulative preferred stock dividend - Total cumulative preferred stock dividend paid in Year 1 = $25,000 - $10,000 = $15,000

Outstanding cumulative preferred stock dividend in Year 2 = Outstanding cumulative preferred stock dividend in Year 1 = $15,000

Total cumulative preferred stock dividend paid in Year 3 = Total cumulative preferred stock dividend + Outstanding cumulative preferred stock dividend in Year 2 = $25,000 + $15,000 = $40,000

Total common stock dividend paid in Year 3 = Dividend distributed in Year 3 - Total cumulative preferred stock dividend paid in Year 3 = $60,000 - $40,000 = $20,000

6 0

3 years ago

When mcdonald’s introduced its low-fat mclean deluxe hamburger, it used __________ to avoid direct competition with wendy’s and

Anni [7]

The appropriate response is differentiation positioning. Differentiation positioning includes looking for a less aggressive, littler market specialty in which to find a brand. Situating and separation are firmly related promoting methodologies. Situating is your procedure for passing on what makes your organization or items greater, diverse or superior to those offered by contenders.

8 0

3 years ago

Lilly Ann went to the pet store with her mother to buy a gerbil. After choosing her gerbil, she and her mother went to look at c

iogann1982 [59]

Answer:

The answer is "b" - Customization

Explanation:

Product Customization is a process of delivering customized goods and services to the customers as per their needs and desire. Customers can either approach a merchant to make certain customizations in a product or personalize the products themselves, exactly the way they want.

It is also known as product personalisation. This is evident in the given situation, as Lilly Ann can customize the cage according to her own preferences.

Standardization

Product standardization refers to the process of maintaining uniformity and consistency among the different iterations of a particular good or service that are available in different markets.

It is a process of marketing a good or service without making any changes to it
Standardization would be correct, if they brand offers the cage without any changes.

Mass customization:

Mass customization is a marketing and manufacturing technique which combines the flexibility and personalization of custom-made products with the low unit costs associated with mass production.
Other names for mass customization include made-to-order or built-to-order.

Mass production:

Mass production is the manufacturing of large quantities of standardized products, often using assembly lines or automation technology.
Mass production facilitates the efficient production of a large number of similar products.

Modular design:

Modular design is a design approach that creates things out of independent parts with standard interfaces.
This allows designs to be customized, upgraded, repaired and for parts to be reused.

7 0

3 years ago

Feldspar Inc. is considering the capital structure for a new division. Management has been given the following cost information:

34kurt

Answer:

Option 4

Explanation:

In this question ,we have to compute the WACC which is shown below:

= Weightage of debt × cost of debt × ( 1- tax rate) + (Weightage of common stock) × (cost of common stock)

For Option 1, it would be

= (0.3 × 10%) × ( 1 - 40%) + (0.7 × 12.5%)

= 1.8% + 8.75%

= 10.55%

For Option 2, it would be

= (0.4 × 10.5%) × ( 1 - 40%) + (0.6 × 13%)

= 2.52% + 7.8%

= 10.32%

For Option 3, it would be

= (0.5 × 11%) × ( 1 - 40%) + (0.5 × 13.5%)

= 3.3% + 6.75%

= 10.05%

For Option 4, it would be

= (0.6 × 11.7%) × ( 1 - 40%) + (0.4 × 14.2%)

= 4.212% + 5.68%

= 9.89%

For Option 5, it would be

= (0.7 × 13%) × ( 1 - 40%) + (0.3 × 15.5%)

= 5.46% + 4.65%

= 10.11%

So based on this, the management should accept option 4 as it derives the best debt asset ratio

The weightage of equity would be come

= 1 - weightage of debt

8 0

3 years ago

The income statement approach to estimating uncollectible accounts expense is used by Kerley Company. On February 28, the firm h

erik [133]

Answer:

Feb 28.

Uncollectible accounts expense would amount to 1% of net credit sales made during February.

Dr Bad Debt Expense $ 27,860

Cr Allowance for Uncollectible Accounts $ 27,860

On March 10, an accounts receivable from Kathy Black for $6,100 was determined to be uncollectible and written off.

Dr Allowance for Uncollectible Accounts $ 6,100

Cr Accounts receivable $ 6,100

March 31, Black received an inheritance and immediately paid her past due account in full.

Dr Accounts receivable $ 6,100

Cr Allowance for Uncollectible Accounts $ 6,100

Dr CASH $ 6,100

Cr Accounts receivable $ 6,100

Explanation:

February 28

Dr Accounts receivable $ 437.000

Cr Allowance for Uncollectible Accounts $ 2.140

Net Credit Sales February $ 3.000.000

Uncollectible accounts expense would amount to 1% of net credit sales made during February.

Dr Bad Debt Expense $ 27.860

Cr Allowance for Uncollectible Accounts $ 27.860

On March 10, an accounts receivable from Kathy Black for $6,100 was determined to be uncollectible and written off.

Dr Allowance for Uncollectible Accounts $ 6.100

Cr Accounts receivable $ 6.100

March 31, Black received an inheritance and immediately paid her past due account in full.

Dr Accounts receivable $ 6.100

Cr Allowance for Uncollectible Accounts $ 6.100

Dr CASH $ 6.100

Cr Accounts receivable $ 6.100

If the company applies the allowance method, it means that the account Allowance for Uncollectible Accounts must show as balance the % estimated of accounts receivables as CREDIT.

Bad accounts are those credits granted by the company and there is no possibility of being charged.

"When customers buy products on credits but the company cannot collect the debt, then it's necessary

to cancel the unpaid invoice as uncollectible."

One way is to directly cancel bad debts at the time it was decided that the credit is bad, the total amount reported as bad debt expenses negatively affect the income statement and the accounts receivable are reduced by the same amount, less assets

The other way is to determine a percentage of the total amount of accounts receivable as bad debts, there are many ways to analyze accounts receivable and calculate the value of bad debts.

When the company has the percentage of uncollectible accounts, the required journal entry is Bad Expenses (debit) with Reserve for Bad Accounts (credit)

At the time of cancellation, since the expenses were recognized before, we only use the Allowance for Uncollectible Accounts (Debit) with accounts receivable (credit), with this we are recognizing the bad credit of the company.

8 0

3 years ago