Cash Method of Accounting records revenues when they are received and expenses when they are paid.
Answer:
A. Profit-orientation
Explanation:
A Profit-orientation objective is a type of company objective whereby strategies are directed to focus on ensuring that a certain margin of profit is attained or achieved on the sales of the company's products or services. It involves using a pricing strategy whereby prices of products or services are set to ensure a certain amount of profit is made on every sale or on the overall sales made.
Jana's implementation of a companywide pricing policy to ensure a profit margin of 13 percent is achieved on all products, is a clear example of a <em>profit-orientation objective.</em>
Answer:
$184.34
Explanation:
The computation of activity rate for the Order Size activity cost pool is shown below:-
The Activity rate for Order size = Estimated order size overhead cost ÷ Total machine hours
= 1,069,190 ÷ 5,800
= $184.34
Therefore for computing the activity rate for the Order Size activity cost pool we simply applied the above formula and ignore all other value.
Answer:
a. The price of the stock today is $24.75
b. The price of the stock in three years will be $28.65
c. The price of the stock in 14 years will be $49.00
Explanation:
The stock is a constant dividend paying stock so the constant growth model of the DDM will be used to calculate the price of the stock. The formula for constant growth model to calculate price of the stock today is:
P0 = D1 / r - g
Where,
- D1 is the dividend next year of D0 * (1+g)
- r is the required rate of return
- g is the growth rate in dividends
a.
The current price of the stock is:
P0 = 1.65 * (1+0.05) / (0.12 - 0.05)
P0 = $24.75
b.
To calculate the price of the stock today, we use the expected dividend for the next period. To calculate the stock price in three years, we will use D4.
P3 = 1.65 * (1+0.05)^4 / (0.12 - 0.05)
P3 = $28.65
c.
To calculate the price in 14 years, we will use D15.
P14 = 1.65 * (1+0.05)^15 / (0.12 - 0.05)
P14 = $49.00
Answer:
(a) $50,000
(b) $45,000
Explanation:
(a)
Total dividends declared:
= Retained earnings, beginning balance + Net income - Retained earnings, ending balance
= $210,000 + $115,000 - $250,000
= $75,000
Cash dividend declared:
= Total dividends declared - Fair value of large stock dividend declared
= $75,000 - $25,000
= $50,000
(b) Cash dividend paid during the year:
= Dividend payable, beginning balance + Cash dividend declared during the year - Dividend payable, ending balance
= $75,000 + $50,000 - $80,000
= $45,000