Congress passed the Sarbanes-Oxley Act to

Q 11.20: Katie Inc. reported net income of $171,000 for the current year and paid dividends of $26,000 on common stock. It also

Leviafan [203]

Answer:

The company's return on common stockholders’ equity for the current year is 8%

Explanation:

Step 1: Determine net income available to common stockholders

The net income available to common stockholder can be expressed as;

net income available to common stockholders=net income-preferred stocks dividends

where;

net income=$171,000

preferred stocks dividends=$10,000×0.06×100=$60,000

replacing;

net income available to common stockholders=171,000-(10,000×0.06×100)=$111,000

Step 2: Determine the company's return on stockholder's equity for the current year

This can be expressed as;

The company’s return on common stockholders’ equity for the year=net income available to common stockholders/(common stock holders equity on January 1+common stockholders equity on December 31)/2

where;

net income available to common stockholders=$111,000

common stock holders equity on January 1=$1,200,000

common stockholders equity on December 31=$1,600,000

replacing;

($111,000/ ($1,200,000 +$1,600,000)/2))=(111,000/1,400,000)×100=7.93%=8%

The company's return on common stockholders’ equity for the current year is 8%

4 0

3 years ago

Monetary policy could be procyclical if the Federal Reserve: a) is late recognizing that a recession has begun and conducts expa

gladu [14]

A) is late recognizing that a recession has begun and conducts expansionary monetary policy.

6 0

4 years ago

Elliott Engines Inc. produces three products—pistons, valves, and cams—for the heavy equipment industry. Elliott Engines has a v

aksik [14]

Answer:

Kindly see attacked picture

Explanation:

Elliott Engines Inc. produces three products—pistons, valves, and cams—for the heavy equipment industry. Elliott Engines has a very simple production process and product line and uses a single plantwide factory overhead rate to allocate overhead to the three products. The factory overhead rate is based on direct labor hours. Information about the three products for 20Y2 is as follows: Budgeted Volume (Units) Direct Labor Hours Per Unit Price Per Unit Direct Materials Per UnitPistons 5000 0.50 $45 $8 Valves 12,500 0.30 17 3Cams 1,500 0.20 60 40 The estimated direct labor rate is s30 per direct labor hour Beginning and ending inventories are negligible and are, thus, assumed to be zero. The budgeted factory overhead for Elliott Engines is $163,750 If required, round all per unit answers to the nearest cent a. Determine the plantwide factory overhead rate. per dih b. Determine the factory overhead and direct labor cost per unit for each product.

Kindly check attached picture for solution

7 0

3 years ago

What is true about analyzing the budget?

nirvana33 [79]

Answer:

In business, budgets provide the organizing framework for financial planning and tools for controlling spending.

In large entities, the Budget Office Director and staff work with individual managers and others seeking funding approval. As a result, budget proposals conform to local policies. And, the entire proposal package aligns with group objectives.

Explanation:

I don't know if this is what you were looking for...

8 0

3 years ago

Rug Designs Inc, a manufacturer of large area rugs, markets its products throughout the United States using a network of regiona

lesantik [10]

Answer:

The correct answer is territorial.

Explanation:

The territorial sales force occurs in large companies that through the implementation of regional sales office seek to optimize customer visit time processes, reduce travel expenses and increase revenue.

The greatest benefits of this territorial strategy is to reach new customers through personalized targeting that will meet the demand and characteristics of customers in a given geographic region. In addition to optimizing logistics processes, productivity and cost reduction.

3 0

3 years ago