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notka56 [123]
3 years ago
15

On January 2, 2017, the board of directors of Michael declared a 10% stock dividend to be distributed on February 15, 2017. The

market price of Michael Company's common stock was $75 per share on January 2, 2017. On the date of declaration, the retained earnings account should be decreased by
Business
1 answer:
frozen [14]3 years ago
8 0

Answer:

the decrease in the value of the retained earning is $172,500

Explanation:

The computation of the decrease in the value of the retained earning is given below:

The dividend of the stock is

= (25,000 shares - 2,000 shares) × 10% × $75

= $172,500

Since there is the stock dividend of $172,500 so it ultimately reduced the retained earning account by $172,500

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The following production data were taken from the records of the Finishing Department for July:Inventory in process, June 1, 30%
zepelin [54]

Answer:

Conversion Cost Equivalent units FIFO           39, 125

Explanation:

Beginning WIP           5,000 30% completed

transferred units       39,500

ending WIP                 4,500  25% completed

<u>The equivalent units will be:</u>

the transferred units

- complete portion for the beginning WIP

+ complete portion of the ending WIP

transferred out                      39,500

work in previous period

5,000 x 30% =                         (1,500)

worked but not complete

4,500 x 25% =                        <u>  1, 125 </u>  

Equivalent units FIFO           39, 125

5 0
3 years ago
Commonwealth Construction (CC) needs $1 million of assets to get started, and it expects to have a basic earning power ratio of
xeze [42]
100%Equity 
<span>---------------------------- </span>
<span>EBIT: $200,000 </span>
<span>Interest: $0 </span>
<span>Taxes: ($80,000) </span>
<span>EAT: $120,000 </span>
<span>Equity: $1,000,000 </span>
<span>ROE12.0% </span>

<span>50% Debt </span>
<span>-------------- </span>
<span>EBIT: $200,000 </span>
<span>Interest: ($40,000) </span>
<span>Taxes: ($64,000) </span>
<span>EAT: $96,000 </span>
<span>Equity: $500,000 </span>
<span>ROE: 19.2% </span>

<span>This is my thought and is contingent on interest expense being tax deductible to the corporation. </span>

<span>Under the equity scenario. Taxes are $80,000 or 40% of $200,000 which is 20% of the $1mm asset base. So the $120,000 earnings after tax divided by the $1mm base is 12% </span>

<span>With 50% leverage, you deduct $40,000 (8% of $500,000 financing) and taxes on remaining amount. The new equity base is smaller at $500,000 so the ROE is higher at 19.2%.</span>
4 0
3 years ago
Using the marine corps planning process (mcpp) to produce an operations order (opord) is an example of which level of risk manag
S_A_V [24]

Answer:

Deliberate level of risk management

Explanation:

Risk management can be defined as a process whereby situations or circumstances that can pose or cause risks to a firm or management operations is properly identified.

Risk management also involves taking appropriate measures to prevent such risks from occurring or taking place.

Risk management also involves controlling or mitigating against any for of risks that may occur in the future.

Risk management includes the following steps:

a) Identify the risks

b) Assess the risks

c) Make decisions

d) Place appropriate controls in place

e) Carry out adequate supervision.

Operational Risk Management has 3 levels and they are:

1) Deliberate Risk Management.

2) Time Critical Risk Management.

3) Strategic Risk Management.

In the question above, using the marine corps planning process (mcpp) to produce an operations order (opord) is an example of Deliberate level of risk management.

Deliberate level of risk management can be defined as the risk management level that is carried out or well executed amongst a group of personnels.

It is the level of risk management that is carried out when we are trying to execute or carry out a particular project.

4 0
3 years ago
Tangible and intangible benefits are defined as: a. None of these choices b. Tangible costs (benefits) can be reasonably quantif
Nata [24]

Answer: All of these choices are correct.

Explanation:

Tangible benefits are benefits that can easily be measured by an individual such as: cash and property while Intangible benefits are those benefits that can't easily be measured in units such as: security, experience, satisfaction.

4 0
3 years ago
An) _____ is a simple project management planning tool used to break the project plan into smaller and smaller steps.
GrogVix [38]

Answer:

WBS

Explanation:

Work breakdown structure

6 0
2 years ago
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