I think it's B (False)!
I hope it helped you!
Answer: $230,400
Explanation:
The Retained earnings account is mainly used to record how much the company retains from its past and present net incomes after paying out dividends to shareholders.
Ending Balance = Beginning balance + Net income - dividends
= 294,000 + (-27,600) - 36,000
= $230,400
Answer:
The correct answer is $12,000.
Explanation:
According to the scenario, the given data are as follows:
Shares issues On Jan.1 Year 1 = 4,000 shares
Par value of shares = $50 par
Cumulative preferred stock = 6%
So, we can calculate the dividend arrearage as of January 1, Year 2 by using following formula:
Dividend as of Jan.1, year 2 = Shares issues On Jan.1 Year 1 × Par value of shares × Cumulative preferred stock
= 4,000 × $50 × 6%
= $12,000
Companies usually use strategies such as testimonies, and others such as overgeneralization (over-simplification) where they say a very broad claim that may not be completely true. Or, it may specifically leave out certain details in order to convince you.
Answer:
$125
Explanation:
average inventory = 500 / 2 = 250
annual holding costs = 250 x $0.50 = $125
also, if you want to determine the order cost:
EOQ = √[(2 x S x D) / H]
EOQ = 500
H = annual inventory holding cost per unit = $0.50
D = annual demand = 500 x 12 = 6,000
500 = √[(2 x S x 6,000) / 0.50]
500² = 12,000S / 0.50
250,000 x 0.5 = 12,000S
125,000 = 12,000S
S = 125,000 / 12,000 = $10.417 ≈ $10.42
annual ordering costs = $10.42 x 12 = $125.04
