Answer:
Some rights of common stockholders are given below.
Voting power on major issues.
Ownership in a portion of the company.
The Right to transfer ownership.
Right to receive declared Dividends.
Opportunity to inspect corporate books, minutes file and other records.
The right to sue for wrongful acts.
Right to attend AGM.
Differences between common and preferred stock
Preferred stock have no voting right while common stock holders have voting right.
When interest rates rise, the value of the preferred stock declines, and vice versa. With common stocks, however, the value of shares is regulated by demand and supply of the market participants.
Common stockholder has right to participate in net asset of company in case of winding up. Preferred stock holder has no such right.
Company profitability have direct effect on wealth of common stockholder but not of preferred stock holder.
Answer:
The answer is C.
Explanation:
Current ratio shows the liquidity of of a company. This ratio tells us how a company or business is able to meet its short obligation.
This ration is very important to lenders because they use it to know of you will be able to meet the interest payment and principal
The formula for current ratio is:
Current assets/current liabilities
Total current assets is $493,000, Total current liabilities is $357,000
= $493,000/$357,000
=1.38
Answer:
B. There will be a decrease in supply.
Explanation:
The switch would cause the amount of cow rearers to fall. The amount of cow available would fall and there would be a decrease in the supply of beef.
I hope my answer helps you
Answer:
$165,500
Explanation:
Given that,
Sales (4,900 × $90) = $ 441,000
Cost of goods sold (4,900 × $38) = 186,200
Gross margin = $ 254,800
Selling and administrative expenses = $75,000
Net income = $ 179,800
Production costs per tennis racket total = $38
Variable production cost = $25
Fixed production cost = $13
Units produced = 6,000
Contribution margin:
= Sales - Variable production costs
= $441,000 - (4,900 × 25)
= $441,000 - $122,500
= $318,500
Fixed costs = Fixed production costs + Selling and administrative expenses
= ($13 × 6,000) + $75,000
= $78,000 + $75,000
= $153,000
Net income under variable costing:
= Contribution margin - Fixed costs
= $318,500 - $153,000
= $165,500
