1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
elixir [45]
2 years ago
14

On January 1, 2015, VITO Corporation had 110,000 shares of its $5 par value common stock outstanding. On June 1, the corporation

acquired 10,000 shares of stock to be held in the treasury. On December 1, when the market price of the stock was $10, the corporation declared a 20% stock dividend to be issued to stockholders of record on December 20, 2015. What was the impact of the 20% stock dividend on the balance of the retained earnings account
Business
1 answer:
rosijanka [135]2 years ago
5 0

Answer:

the impact is $200,000 decrease

Explanation:

The computation of the impact is as follows

= (Total shares - treasury stock) × market price of the stock × dividend percentage

= (110,000 shares - 10,000 shares) × $10 × 20%

= $200,000 decrease

hence, the impact is $200,000 decrease

You might be interested in
A. Suppose there is a surge in consumer confidence, creating an increase in aggregate demand in the economy. The Federal Reserve
Mrac [35]

Answer:

See below.

Explanation:

For a, first we calculate the credit multiplier of the economy,

Credit multiplier = 1 / reserve ratio

Credit multiplier = 1 / 0.25 = 4

This means that any change in money supply will be 4 times as much in the economy, hence to induce a change of $120 billion, the Fed will decrease the money supply by 120/4 = $30 billion. This will increase the interest rates just enough to stabilize aggregate demand.

For b, we again start by calculating the credit multiplier.

Credit multiplier = 1/0.10 = 10

Since the Fed want to stimulate investment, it needs to use an expansionary monetary policy.

The Fed thus increases the money supply by 150/10 = $15 billion.

This will have the total effect of 150 billion on the whole thus achieving the Fed's objectives.

Hope that helps.

4 0
2 years ago
If revenue is $2000 and operating expenses are $6000, cash flow equals _____.
maksim [4K]

Answer:

-4000 hope this helps :)

7 0
2 years ago
Variable costs A. are fixed per unit and vary in total as production levels change. B. are fixed in total as production levels c
Bumek [7]

Answer: Option A

Explanation: In simple words, Variable cost is that cost of the business that changes with level of production. Hourly wage rate of workers, electricity bill of factory are some of many examples of variable cost.

The electricity consumption is fixed per unit, but if the level of production rises the electricity bill also rises as more units will be consumed.

Hence, from the above we can conclude that the right option is A.

8 0
2 years ago
The amount of a good that must be given up to produce another good is the concept of:
Vesna [10]
E.) Opportunity cost is the cost associated with giving up one opportunity for the benefit earned by another.
3 0
3 years ago
Acme inc. has a mission statement that is open to interpretation. many stakeholders identify with it. their mission statement is
shtirl [24]
Thank you for posting your question here at brainly. I hope the answer will help. The mission statement "Acme inc. has a mission statement that is open to interpretation. Many stakeholders identify with it." is <span>ambiguous.</span>
5 0
3 years ago
Read 2 more answers
Other questions:
  • The last in line for the payment of profits are the:_______ a) boundholders b) common stockholders c) preferred stockholders d)
    10·1 answer
  • Personnel at a decision point in their careers can receive an overview of their veteran's benefits from what source?
    9·1 answer
  • Cameron industries is purchasing a new chemical vapor depositor in order to make silicon chips. it will cost $ 4 million$4 milli
    13·1 answer
  • To encourage customers to open a mail offering them a subscription to home companion, a home furnishings magazine, the front of
    10·1 answer
  • Selling price $
    11·1 answer
  • The income statement and the cash flows from the operating activities section of the statement of cash flows are provided below
    13·1 answer
  • An adjusting entry was made on year-end December 31 to accrue salary expense of $3,000. Assuming the company does not prepare re
    13·1 answer
  • Consolidation accounting:______
    8·1 answer
  • Plsss help!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
    5·2 answers
  • If a contingency in a purchase agreement is not fulfilled despite a good faith effort to fulfill it, the party who benefits from
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!