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9966 [12]
3 years ago
12

Novak Corp. has had 4 years of net income. Due to this success, the market price of its 300,000 shares of $5 par value common st

ock has increased from $11 per share to $54. During this period, paid-in capital remained the same at $4,290,000. Retained earnings increased from $1,790,000 to $12,900,000. President E. Rife is considering either a 17% stock dividend or a 2-for-1 stock split.
He asks you to show the before-and-after effects of each option on retained earnings.
Retained earnings after stock dividend
Retained earnings after stock split
Business
1 answer:
Andre45 [30]3 years ago
6 0

Answer:

Retained earnings after stock dividend  = $10,146,000

Retained earnings after stock split = $12,900,000

Explanation:

1. Retained earnings after stock dividend amount is: 300,000*17%*54 = $2,754,000. The new balance of retained earnings is = $12,900,000 - $2,754,000 = $10,146,000

2. The retained earning after stock-split will not change and it is same as $12,900,000

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Answer:

includes a two-part exam, education requirements, and a work experience requirement

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CMA focuses on financial analysis, budgeting, and strategic assessment.

I hope my answer helps you.

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3 years ago
Bachelor’s degrees are typically earned in _____. a. 1-2 years b. 2-3 years c. 3-4 years d. 4-5 years Please select the best ans
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3 years ago
A vendor allows a 2% discount if an invoice is paid within 10 days. a purchase was made for $5,000 on june 10 and paid on june 1
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3 years ago
On January 1, 2021, Maywood Hydraulics leased drilling equipment from Aqua Leasing for a four-year period ending December 31, 20
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Answer: See explanation

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The appropriate entries for Maywood on January 1, 2021 and December 31, 2021, related to the lease goes thus:

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The working to the above entries has been attached

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