Answer:
The total amount of dollar sales for the next period is $1,675,500
The number of units to be sold next period is 23,500
Explanation:
The sales less the total cost gives the pretax income. The costs are the fixed and variable cost. Contribution margin is the sales less the variable cost. Hence the pretax income is the difference between the contribution margin and the fixed cost.
Let the total sales in dollars be G
G - $430,000 - $970,000 = $275,500
G = $275,500 + $430,000 + $970,000
G = $1,675,500
Hence the total contribution margin
= $1,675,500 - $430,000
= $1,245,500
Let the total number of units to be sold be t
$1,245,500
/t = $53
t = $1,245,500
/53
= 23,500
Answer:
<u>December 31, 2018</u>
Debit : Dividend $40,000
Credit : Shareholders for dividends $40,000
Explanation:
When dividends are declared, we Debit an Equity Element - Dividend and Credit the Liability - Shareholders for dividends.
Calculation of this dividend is made on the stockholders in existence at the on a stated date (January 15 in this case) and at par value ($2) as follows :
Dividend = 100,000 x $2.00 x $0.20 = $40,000
Answer:
(a) increase its dividend;
dividends are increased for two reasons:
- the company has excess cash and it doesn't have any possible investments on hand
- the board and upper management want to increase the stock price and higher dividends always result in higher stock prices, even if it is only in the short run.
(b) buy back some of its common stock shares;
- the company has excess cash and the board and upper management believe that the stock price is too low.
(c) pay down some of its debt;
- the company has excess cash and it considers that the cost of its debt is too high and it can get cheaper financing from other sources if needed.
(d) increase its use of internal financing;
- the board and upper management considers that the company needs to invest in new or existing projects and they consider that the financing costs are too high. Also, on the long run if things work well, the stock price should increase.
(e) take the public firm private
- the company has excess cash and the board and upper management believe that the stock price is too low. It is similar to (b) only on an extreme situation.
using the payment function, a $12,000 loan for 4 years at a rate of 6%, your payment would be $281.82
Answer:
The correct answer is letter "B": They should be ignored in a bidding war.
Explanation:
Negotiations are vital in every aspect. They allow individuals to deal with situations in which parties need from each other but either of them is willing to take the first step to come to an agreement. Negotiations can also be useful out of problematic situations when parties voluntarily want to make a pact but the initial terms are unclear.
Placing limits for negotiations is important as well. Limits will prevent parties from giving to much of themselves or avoiding the other party to take advantage of a given situation. Thus, in front of war, limits must be placed in a negotiation.
