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
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

You might be interested in
Do you consider it morally and ethical wrong to pay bribes through an agent entering an international market faster, receiving n
Ghella [55]

Answer:

yes I do believe it is ethically and morally wrong to pay bribes

3 0
2 years ago
Read 2 more answers
NEED THIS ASAP
GaryK [48]

Answer:

When the economy reaches full real output, there is no spare capacity left and therefore as real output increases, the price level will increase. There are no workers left in the economy as full employment is reached.

5 0
3 years ago
If labor becomes more productive, the production possibilities frontier will:__________
bezimeni [28]

Answer:

Shift outwards.

Explanation:

The production possibilities frontier or curve is the curve that shows various combinations or bundles of goods that an economy produces by using its all resource and if there is any point inside the curve then it will depict the inefficiency or underutilization of resources. Moreover, the PPF curve shifts outwards when there is an improvement in technology, due to which the output has increased. Similarly, the increase in output due to labor productivity will result in the rightward shift in the PPF curve.

7 0
3 years ago
The desire for a product class rather than for a specific brand is called __________ demand.
sveta [45]
The desire for a produsct class rather than for a specifik brand is called selective demand
8 0
2 years ago
Taurus's gross pay for the week is $980. his yearly pay is under the limit for oasdi. assume that the rate for state and federal
olga_2 [115]
<span>Taurus's employer must record $60.76 for unemployment compensation because his yearly pay has not yet exceeded the $7,000 cap. Taurus's oasdi tax would be $60.76 and the medicare tax total is $14.21. The total payroll tax expenses for Taurus's employer to pay is $135.73.</span>
4 0
3 years ago
Other questions:
  • M10-14 Analyzing the Impact of Transactions on the Debt-to-Assets Ratio [LO 10-5] BSO, Inc., has assets of $600,000 and liabilit
    9·1 answer
  • A large manufacturing business has hired you as a fraud detection specialist. The first day on the job your boss tells you she h
    11·1 answer
  • Sanders Inc. is a small brick manufacturer that uses the direct write-off method to account for uncollectible accounts. At the e
    13·1 answer
  • On January 1, 2008. Titania, Inc. granted stock options to officers and key employees for the purchase of 20,000 shares of the c
    9·1 answer
  • A set of financial states made every 3 months is called a .
    12·1 answer
  • Mrs. Patterson is a new enrollee in the HealthBest Medicare Advantage (MA-PD) plan. She is new to this type of coverage and asks
    13·1 answer
  • Preferred Stock As of December 31, 2015, we had one class of preferred stock outstanding. We are authorized to issue approximate
    15·1 answer
  • What are examples of financial obstacles to a career plan? Check all that apply. I was unable to save enough money to pay for co
    7·2 answers
  • Exercise 4-36 (Algo) Application of Overhead [LO 4-4, 4-6]
    7·1 answer
  • Explain the importance of knowing dependent and independent demand models to companies.
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!