Answer:
Dividend paid = (5%× 10,000 × $10) = $5000.
Explanation:
<em>Preference shares entitles the holders to participate in a fixed dividend out of the profit made by the company. The divide is always a fixed percentage of the nominal value of the preference shares</em>
It can be cumulative and non-accumulate.
Cumulative <em>simply implies that should the company misses the payment of dividend in a particular year such unpaid dividend would be carried carried forward and paid in arrears in the following year/</em>
Non-cumulative i<em>s the exact opposite of the case . Here, unpaid dividends are not paid in arrears in fact such are forfeited for life.</em>
Dividend in Year 1
Dividend paid in Year 1 was $ 4000 but ought to be $5,000 (5%× 10,000 × $10). An arrear of $1000
Dividend in Year 2
Dividend paid = (5%× 10,000 × $10) = $5000.
Note that the unpaid dividend of $1,000 in year 1 is lost forever
Answer:
$4,000
Explanation:
The operating activities records daily activities of a business entity transactions such as depreciation expense, loss or profit on sale of long term assets, change in working capital etc.
With regards to the above scenario, there is a loss of $4,000 on the sale of equipment whilst same was recorded under the operating activity section as positive.
It is to be noted that the sale and equipment of an equipment falls under investing activity section hence shod be recorded therein as such, reason it was not considered here.
Answer:
Hajj and Umrah packages which are not
