Answer:
The amount of manufacturing overhead cost that would have been applied to all jobs during the period is $279,720
Explanation:
The computation of the amount of manufacturing overhead is shown below:
= Predetermined overhead rate per direct labor-hour × total direct labor-hours
= $22.20 × 12,600 direct labors
= $279,720
Since the predetermined overhead rate is already given in the question, so there is no need to recalculate it and the other items which are mentioned are not relevant for the computation part. Hence, ignored it
Answer:
c) The current ratio
Explanation:
The current ratio is an example of a liquidity ratio.
Liquidity ratios measure a company's ability to meet its short term obligations.
Current ratio = curernt assets / current liabilities
Return on assets is a profitability ratio. It measures return on investment
The other ratios are coverage ratios. They measure the ability of the firm to covert its debts payments
Answer:
<h2>
a. The Preferred stock is noncumulative.</h2>
Preferred stock
= 7,710 * 17.5 * 8%
= $10,794
Per share
= 10,794/7,710
= $1.40
Common Shareholders.
= 63,800 - 10,794
= $53,006
Per share
= 53,006/49,000
= $1.08
<h2>
b. Preferred stock is cumulative. </h2>
This means that if preferred dividends are not paid in a year, they will be accrued and paid when they can.
Preferred stock
= 7,710 * 3 years (2017,2018,2019)
= $23,130
Per share = 23,130/7,710
= $3
Common stock
= 63,800 - 23,130
= $40,670
Per share
= 40,670/49,000
= $0.83
c. Why were the dividends per share of common stock less for the cumulative preferred stock than the noncumulative preferred stock?
b. The dividends in arrears on the preferred stock had to be fulfilled before dividends could be paid for the current year.
Answer:
C. the divine coincidence does not always hold
Explanation:
When a temporary negative supply shock hits the economy the divine coincidence does not always hold.
