Answer and Explanation:
The gross domestic product(gdp) is the total market value of all goods and services produced in a country in a year.
The GDP growth rate of US in the last five years is as given below:
2016: 1.64%
2017: 2.37%
2018: 2.93%
2019: 2.16%
2020: -3.51%
2021 first quarter: 6.39%
From the above, we can see the growth rate of US GDP has grown steadily from 2016 until the year 2019 when there is a decline of 0.77% from the previous year. In 2020, the US GDP suffers a farther decline as a result of the coronavirus pandemic and has a negative growth rate of -3.5%. However in the first quarter of this year, the growth rate improves considerably, given new innovations and work from home(WFH) work arounds to tackle the challenges of the pandemic to the traditional workplace.
Compton Company expects the following total sales: Month Sales March $ 37,000 April $ 27,000 May $ 21,000 June $ 32,000 The company expects 70% of its sales to be credit sales and 30% for cash. Credit sales are collected as follows: 25% in the month of sale, 75% in the month following the sale. The budgeted accounts receivable balance on May 31 is:
Answer:
$11,025
Explanation:
From May sales, Total Credit sales = $21,000*70% = $14,700
Cash Collected in May (for sales) = Total Credit sales * 25%
Cash Collected in May = $14,700*25%
Cash Collected in May = $3,675
Accounts Receivables Balance = Total Credit sales (May) - Cash Collected in May
Accounts Receivables Balance = $14,700 - $3,675
Accounts Receivables Balance = $11,025
So, the budgeted accounts receivable balance on May 31 is $11,025.
Tri Town Interiors, an interior design company, has experienced a drop in business due to an increase in interest rates and a corresponding slowdown in remodeling projects. To stimulate business, the company is considering exhibiting at the Middleton Home and Garden Expo. The exhibit will cost the company $14,980 for space. At the show, Tri Town Interiors will present a slide show on a laptop, pass out brochures that were printed previously (the company printed more than needed), and show its portfolio of previous jobs.
The company estimates that revenue will increase by $40,060 over the next year as a result of the exhibit. For the previous year, profit was as follows: $213,615 $18,106 81,459 56,285 18,811 Revenue Less: Design supplies Salary of Samantha Spade (owner) Salary of Kim Bridesdale (full-time employee) Rent Utilities Depreciation of office equipment Printing of advertising materials Advertising in Middleton Journal Travel expenses other than depreciation of autos Depreciation of company cars Net income 6,570 4,000 812 3,080 2,890 9,930 201,943 $11,672
Assume that design supplies and travel other than depreciation are variable costs.
Calculate the impact of the exhibit on company profit. (Round intermediate calculations to 4 decimal places, e.g. 0.3215 and final answer to 0 decimal places, e.g. 125.)
Company profit will _______ by _______
Should the company exhibit at the home show?
The company ________ exhibit at the home show.
Answer:
Tri Town Interiors
Company profit will increase by $21,272.
The company should exhibit at the home show.
Explanation:
a) Data and Calculations:
Cost of the exhibit = $14,980
Increase in revenue from the exhibit = $40,060
Increase in revenue from the exhibit = 19% ($40,060/$213,615 * 100)
Design supplies = $21,365 ($18,106 * 1.19)
Travel expenses other than depreciation of autos = $3,439 ($2,890 * 1.19)
Revenue $213,615 $253,675
Less:
Design supplies $18,106 $21,365
Salary of Samantha Spade (owner) 81,459 81,459
Salary of Kim Bridesdale
(full-time employee) 56,285 56,285
Rent 18,811 18,811
Utilities 6,570 6,570
Depreciation of office equipment 4,000 4,000
Printing of advertising materials 812 812
Advertising in Middleton Journal 3,080 3,080
Travel expenses other than
depreciation of autos 2,890 3,439
Cost of exhibit 14,980
Depreciation of company cars 9,930 201,943 9,930 220,731
Net income $11,672 $32,944
Increase in net income = $21,272 ($32,944 - $11,672)
A financial institution that makes short-term, high-interest loans to borrowers who are considered high risk is a:
A. credit union.
B. retail bank.
C. mortgage lender.
D. payday lender.
Answer:
D
Explanation:
A payday lender is a lender who provides high interest loans to individuals. The loans are based on the income of the borrower. The loans are usually for a short period and they usually do not require collateral
A mortgage lender is a lender or institution that underwrites loans on homes. The loans are usually for a long period of time.
Retail banks are banks that provide financial services to consumers rather than to businesses
Credit union is a form of financial institution owned by members of the union. The union provides financial services similar to the services provided by commercial banks
Here are the U.S. tax rates and their corresponding tax brackets based on filing status for single individuals (i.e. not corporations) If taxable income is: Then income tax equals: Not over $9,875 10% of the taxable income Over $9,875 but not over $40,125 $987.50 plus 12% of the excess over $9,875 Over $40,125 but not over $85,525 $4,617.5 plus 22% of the excess over $40,125 Over $85,525 but not over $163,300 $14,605.5 plus 24% of the excess over $85,525 Over $163,300 but not over $207,350 $33,271.5 plus 32% of the excess over $163,300 Over $207,350 but not over $518,400 $47,367.5 plus 35% of the excess over $207,350 Over $518,400 $156,235 plus 37% of the excess over $518,400 Layla's taxable income for 2019 was $182,431. How much are her federal income taxes to the nearest dollar
Answer:
Layla's federal income taxes to the nearest dollar are:
= $39,393.
Explanation:
a) Data and Calculations:
Layla's taxable income
for 2019 = $182,431 Income Tax
Income tax on (163,300) = $33,271.50
Excess of $163,300 19,131 = $6,121.92 ($19,131 * 32%)
Total income tax payable = $39,393.42
U.S. Tax Rates and Corresponding Tax Brackets (Single Individuals)
If taxable income is: Then income tax equals:
Not over $9,875 10% of the taxable income Over $9,875 but not over $40,125 $987.50 plus 12% of the excess over $9,875
Over $40,125 but not over $85,525 $4,617.5 plus 22% of the excess over $40,125
Over $85,525 but not over $163,300 $14,605.5 plus 24% of the excess over $85,525
Over $163,300 but not over $207,350 $33,271.5 plus 32% of the excess over $163,300
Over $207,350 but not over $518,400 $47,367.5 plus 35% of the excess over $207,350
Over $518,400 $156,235 plus 37% of the excess over $518,400 Layla's taxable income for 2019 was $182,431
Suppose after the quarter ends, you take a trip to a tropical island. Upon arriving at the island, you notice that everyone is carrying around jars full of little turtles. You also notice the person in line in front of you just paid for a bottle of rum with 6 turtles. Someone else just bought a straw hat for two turtles. Thinking back to your economics class (however painful that might be), you would conclude that: Group of answer choices
Answer:
those little turtles are serving the function of money
Explanation:
Money should be used in the exchange or economic transactions on regularly basis. It is to be served as the medium of exchange and solved the confusion of the double coincidence of wants that existed in the barter transaction. The function of money as the unit of the account is used when the amount of the good or service should be expressed
So, the above should be the answer
In evaluating the profit center manager, the income from operations should be compared a.across profit centers b.to historical performance or budget c.to the competitor's net income d.to the total company earnings per share
Answer: to historical performance or budget
Explanation:
A profit center in a business is a division that is able to make revenues independently and contribute to the revenue of the entire business. In evaluating the performance of a profit center manager, it is best to compare the performance to a budget or their historical performance.
This is because profit centers engage in different businesses and so their revenue making style will be unique. Some profit centers will make more than others because of the goods they produce or the way they produce it. It is therefore best to compare a profit center to an internal measure such as the budget and historical performance.
If the profit center exceeds either of these then they are performing well.
During the 1990s, several airlines were on the brink of bankruptcy. These same airlines were giving away millions of dollars in free airline travel through their frequent-flyer programs. Do you think it would have been a good idea for these airlines to eliminate their frequent-flyer programs in order to earn higher profits?
Answer:
Assuming that the elimination of frequent-flyer programs would have enabled the airlines to earn higher profits and remain in business, then it would be a purely good idea for the airlines to eliminate their frequent-flyer programs.
The big question is, how much did the frequent-flyer programs cost the airlines? Would the cost-savings be sufficient to eliminate their bankruptcies? It is a known-fact that the airlines that create such programs always recover the program costs by charging higher fares.
Explanation:
The issue of airlines going bankruptcy does not seem to stem from customer-loyalty programs like the frequent-flyer programs. The root cause lies in operational and other costs that airline managements have not been able to control.
Carol Co. prepares a statement of cash flows starting with net income and then adjusting for items necessary to obtain net cash provided or used by operating activities. Carol Co. must be using the______method of reporting the statement of cash flows.
Answer:
indirect
Explanation:
From the question we are informed about Carol Co. prepares a statement of cash flows which start with net income and then adjusting for items necessary to obtain net cash provided or used by operating activities. In this case, Carol Co. must be using the
indirect method of reporting the statement of cash flows. In financial accounting, cash flow statement can be regarded as financial statement which express the way changes in balance sheet accounts as well as income affect cash and cash equivalents, and also give the analysis breakdown to operating, financing as well as investingactivities.
The methods for reporting statement of cash flows could be Direct or indirect method.
The indirect method can be regarded as method that gives presentation of the statement of cash flows by strating
with net income or net loss, along with deduction or additions to the amount for non-cash revenue and expense items or from them which comes subsequently, which then results to cash flow from operating activities.
Wild Flowers Express has a debt-equity ratio of .60. The pretax cost of debt is 9 percent while the unlevered cost of capital is 14 percent. What is the cost of equity if the tax rate is 23 percent
Answer:
0.1631 ; 16.31%
Explanation:
Given:
Cost of capital = 14% = 0.14
Debt to equity ratio = 60% = 0.6
Cost of debt = 9% = 0.09
Tax rate = 23% = 0.23
Cost of equity : cost of capital + debt - to - equity ratio * (1 - tax rate) * (cost of capital - cost of debt)
Cost of equity = 0.14 + 0.60 × (1 - 0.23) × (0.14 - .09)
Cost of equity :
0.14 + 0.60 * 0.77 * 0.05
0.14 + 0.0231
= 0.1631 ; 0.1631 * 100% = 16.31%
g A machine costing $58,944 with a 6-year life and $55,853 depreciable cost was purchased January 1. Compute the yearly depreciation expense using straight-line depreciation. Round your answer to the nearest whole dollar.
Answer:
$9,309
Explanation:
Straight line depreciation expense = (Cost of asset - Salvage value) / useful life
DEPRECIABLE COST / USEFUL LIIFE
$55,853 / 6 = $9,309
Your grandparents would like to establish a trust fund that will pay you and your heirs $205,000 per year forever with the first payment 12 years from today. If the trust fund earns an annual return of 4 percent, how much must your grandparents deposit today?
Answer:
PV= $3,201,059.88
Explanation:
Giving the following information:
Annual cash flow= $205,000
First payment= 12 years from today
Interest rate= 4%
First, we need to calculate the value of the account 12 years from today. We need to use the following formula:
FV= Cf/ i
FV= 205,000 / 0.04
FV= $5,125,000
Now, the amount to be deposited today:
PV= FV / (1 + i)^n
PV= 5,125,000 / (1.04^12)
PV= $3,201,059.88
Two methods are used to predict how many customers will call in for help in the next four days. The first method predicts the number of callers to be 23, 5, 14, and 20 for the four respective days. The second method predicts 20, 13, 14, and 20 for the four respective days. The actual number of callers turns out to be 23, 10, 15, and 19. Which method has the bigger forecast bias?
a- the second methodb- both are equally biasedc- both are not biasedd- the first method
Answer:
The method that has the bigger forecast bias is:
the first method.
Explanation:
a) Data and Calculations:
Days 1 2 3 4 Total
First method, number of callers predicted 23 5 14 20 62
Second method, number of callers predicted 20 13 14 20 67
Actual number of callers 23 10 15 19 67
Comparison with actual callers:
Actual number of callers 23 10 15 19 67
First method, number of callers predicted 23 5 14 20 62
Forecast bias 0 -5 -1 +1 -5
Comparison with actual callers:
Actual number of callers 23 10 15 19 67
Second method, number of callers predicted 20 13 14 20 67
Forecast bias -3 +3 -1 +1 0
b) A forecast bias between first method of prediction and actual number of callers occurs because there is a difference between the total actual number of callers and the total predicted forecasts of callers. But there is no difference between the total actual number of callers and the predicted forecasts of the callers for method two.
Predictions are termed as the forecasting of the uncertain event or the happening. These are also dependent on the probability of whether the event has to have occurred or have the ratio of changes to occur.
The correct answer for the method that has the bigger forecast bias is the first method.
a) Data and Calculations:
Days 1 2 3 4 Total
First method, number of callers predicted 23 5 14 20 62
Second method, number of callers predicted 20 13 14 20 67
Actual number of callers 23 10 15 19 67
Comparison with actual callers:
Actual number of callers 23 10 15 19 67
The first method, number of callers predicted 23 5 14 20 62
Forecast bias 0 -5 -1 +1 -5
Comparison with actual callers:
Actual number of callers 23 10 15 19 67
Second method, number of callers predicted 20 13 14 20 67
Forecast bias -3 +3 -1 +1 0
b) There is a projection imbalance between the first technique of prognosis and the actual number of callers because there is a mismatch between the total actual number of callers and the total predicted forecasts of callers. However, there is no difference between the total number of actual callers and the projected caller projections in approach two.
To know more about the forecast bias, refer to the link below:
https://brainly.com/question/799559
Claire and Don are farmers who produce beef and corn. In a year, Claire can produce 40 tons of beef or 160 bushels of corn. In a year, Don can produce 10 tons of beef or 20 bushels of corn. How do Clair and Don maximize their total output of beef and corn?
A. Claire produces beef and corn while Don produces nothing.
B. Claire produces beef and Don produces com.
C. Claire and Don each spend half of their time producing beef and the other half producing corn.
D. Don produces beef and Claire produces com.
this is not only a value in itself but a value that guarantees other values. a. patience. b.fairness. c.respect. d integrity
Answer: Integrity
Explanation:
Integrity isn't only a value in itself but a value that guarantees other values. Integrity means to be true to ones values and act in accordance to those values.
A person with integrity has ethical principles and always does the right thing. Employees like people who have integrity Workers build relationships based on integrity.
Tim wants to purchase a new computer and go to the Caribbean for spring break. The computer is priced at $1,299, and the vacation is priced at $750. He has only $1,537 in his checking account, so he cannot afford to purchase both. After much thought, Tim buys the computer and writes a check for $1,299. Identify what role money plays in each of the following parts of the story. Hint: Select each role only once. Role of Money Medium of Exchange Unit of Account Store of Value Tim has $1,537 in his checking account. Tim writes a check for $1,299. Tim can easily determine that the price of the computer is more than the price of the vacation.
Answer:
Role of Money in Each Part of the Story:
1. Tim can easily determine that the price of the computer is more than the price of the vacation = Unit of Account
2. Tim has $1,537 in his checking account = Store of value
3. Tim writes a check for $1,299= Medium of Exchange
Explanation:
Money is countable and can be used to value exchanges and calculate profits and losses, income and expenses, and debts and wealth. It can also be stored currently, retrieved at a later date, and exchanged for value in the future without significant loss of value. Money facilitates transactions between parties.
Three months of rent were prepaid on May 1 for $7,200, but two months have now expired, leaving only one month prepaid at June 30. What is the amount of rent expense that will be recorded in the related adjusting entry dated June 30?a- $0b- $2,400c- $4,800d- $7,200
Answer:
b- $2,400
Explanation:
The computation of the amount that should be recorded is given below:
= 3 months rent ÷ number of months
= $7,200 ÷ 3 months
= $2,400
Hence, the amount of rent that should be recorded is $2,400
Therefore the option b is correct
The same should be considered
At Cool Clothes Inc., there is a total focus on providing care and satisfaction to each customer. In the major clients division, each manager is assigned three employees to supervise, whereas in the product assembly division, each manager supervises about 15 employees. The major clients division managers can be described as having _____, as opposed to _____ for the product assembly division managers.
Answer: a narrow span of control; a wide span of control
Explanation:
Based on the information given, the major clients division managers can be described as having a narrow span of control, as opposed to a wide span of control for the product assembly division managers.
The span of control simply means the number of subordinates that are under the direct control and supervised by a certain manager.
Since we are informed that while in the major clients division, every manager is assigned three employees to supervise, whereas in the product assembly division, each manager supervises about 15 employees, then product assembly division managers has a wide span of control.
he cost to produce items is dollars. Find the marginal cost of producing the item. Interpret your answer in terms of costs. The marginal cost of producing the item is Enter your answer; The marginal cost of producing the 25^th item is $ 150 . This means that the cost of production Choose your answer; This means that the cost of production increases by about Enter your answer; by about $ 150 when we add one unit to a production level of Enter your answer; when we add one unit to a production level of _ units units.
Answer:
a. The marginal cost of producing the 25^th item is $100.
b. This means that the cost of production increase by about $100; when we add one unit to a production level of 25 units.
Explanation:
Note: This question is not complete. The complete question is therefore provided before answering the question as follows:
The cost to produce q items is C(q) = 1000 + 2q^2 dollars. Find the marginal cost of producing the 25th item. Interpret your answer in terms of costs.
The marginal cost of producing the 25^th item is $_______.
This means that the cost of production _____ by about ________; when we add one unit to a production level of _____ units.
The explanation of the answer is now provided as follows:
a. Find the marginal cost of producing the 25th item.
Given:
C(q) = 1000+2q^2 …………… (1)
Taking the derivative of equation (1) with respect q to obtain the marginal cost function as follows:
MC(q) = C’(q)= 4q ………………….. (2)
Substituting q = 25 into equation (2), we obtain the marginal cost (MC) of producing the 25th item as follows:
MC(25) = 4 * 25 = $100
Therefore, the marginal cost of producing the 25^th item is $100.
b. Interpret your answer in terms of costs.
This means that the cost of production increase by about $100; when we add one unit to a production level of 25 units.
Advise new entrepreneurs on the char
acteristics of co-operatives
Answer:
A cooperative can be understood as a business model where there is a partnership between people with the same interests in an economic activity, not for profit, and who provide associated services.
In this voluntary society, there are its own rules and autonomy, being the voluntary and independent association, where there is the cooperation of each member and sharing of the management, of the positive and negative risks to the business. All members have economic participation and access to information and training. Interest on capital is limited and the surplus is distributed among all members.
Shidan Apartments purchased an apartment building to rent to university students on November 18, 2017. The following costs were incurred during 2017, before the tenants moved in: Purchase price of the building $220,000 Purchase price of the land 100,000 Transfer taxes 10,000 Interest incurred on the mortgage loan to purchase 4,000 Attorney and real estate agent's fees 15,000 Repave the parking lot 6,000 How much will Shidan Apartments record as an asset
Answer:
$351,000
Explanation:
The computation of the amount of an asset is as follows;
Purchase price of the building $220,000
Purchase price of the land $100,000
Transfer taxes $10,000
Attorney and real estate agent's fees $15,000
Repave the parking lot $6,000
Cost of apartment $351,000
hence, the cost of an apartment is $351,000
Revenue of a segment includes A. only sales to unaffiliated customers B. Sales to unaffiliated customers and intersegment sales c. Sales to unaffiliated customers and interest revenue d. Sales to unaffiliated customers and other revenue and gains
Answer: Sales to unaffiliated customers and intersegment sales
Explanation:
A segment refers to a business component of a business which generates its own revenues.
Revenue of a segment includes the sales to unaffiliated customers and intersegment sales. Therefore, the correct option is B.
In the Land of Milk and Honey, they produce two goods: Milk and Honey. In 2014, milk cost $2 a gallon and they produced 10 gallons. Honey cost $1 a pint and they produced 20 pints. In 2015, milk cost $2 a gallon and they produced 12 gallons. Honey cost $1 a pint and they produced 24 pints. In 2016, milk cost $2.50 a gallon and they produced 12 gallons. Honey cost $1.25 a pint and they produced 24 pints. The base year is 2015. Calculate real GDP in 2014.
a. $20.
b. $40.
c. $48.
d. $60.
e. $80.
f. $100.
g. $125.
Answer:
Land of Milk and Honey
The real GDP in 2014 is:
= b. $40.
Explanation:
a) Data and Calculations:
Milk Honey Total GDP
Cost per gallon in 2014 $2 $1
Quantity produced 10 20
Total production value $20 ($2*10) $20 ($1*20) $40 ($20 + $20)
Cost per gallon in 2015 $2 $1
Quantity produced 12 24
Total production value $24 ($2*12) $24 ($1*24) $48 ($24+ $24)
Cost per gallon in 2016 $2.50 $1.25
Quantity produced 12 24
Total production value $30 ($2.50*12) $30 ($1.25*24) $60 ($30 + $30)
The real GDP in 2014 is the calculated value of $40. Using 2015 as the base year, there is no inflation since the unit prices of milk and honey remained the same in both years.
The real GDP in 2014 would be $40.
What is GDP?The full form of GDP is gross domestic product. In simple words, it means the total of all value added produced in an economy.
The value added intends the value of goods and services that have been produced minus the value of the goods and services wanted to produce them.
Computation of the real GDP:From the given information, data and calculations are given in the image below:
Hence, The real GDP of the year 2014 would be $40. Taking 2015 as the base year, there is no inflation since the unit prices of milk and honey stay on the same in both years.
Therefore, option B is correct.
Learn more about GDP, refer:
https://brainly.com/question/4131508
Given the following data: Treasury Bill Maturity DTM Bid Asked Mar 90 1.20 1.15 If you invest $10,000 today at the risk-free rate, how much will you receive in 90 days
Answer: $10029
Explanation:
Based on the information given in the question, if $10000 is invested today at the risk-free rate, the amount that'll be received in 90 days will be calculated thus:
= Investment × (1 + Asked) × (DTM/360)
= 10000 + (1 + 0.0115) × (90/360)
= 10000 + 1.011 × 0.25
= 10029
Therefore, the answer is $10029
A director who becomes involved in litigation because of his or her position has no right to be indemnified for the costs. a. True b. False
Answer:
b. False
Explanation:
A corporation can be defined as a corporate organization that has facilities and owns or controls assets used for the production of goods and services in at least one country other than its headquarter (home office) located in its home country.
This ultimately implies that, a corporation is a corporate organization that owns or controls its business in two or more countries.
It is considered to be one of the most complicated and expensive type of organization.
Generally, a corporation is considered to be perpetual in nature and it is a body that comprises of a group of people such as directors, shareholders etc., who act as a single entity.
One of the advantage of a corporation is that, owners have limited liability for debt to the extent to which they have invested and as such are not personally liable for some of debt owed by corporation.
Hence, a director who becomes involved in litigation because of his or her position has a right to be indemnified or reimbursed for the costs involved or incurred.
Last month, the Tecumseh Corporation supplied 400 units of three-ring binders at $6 per unit. This month, the company supplied the same quantity of binders at $4 per unit. Based on this evidence, Tecumseh has experienced:_________.
a. a decrease in supply
b. an increase in supply
c. an increase in the quantity supplied
d. a decrease in the quantity supplied.
Answer:
B
Explanation:
according to the law of supply, the higher the price, the higher the quantity supplied and the lower the price, the lower the quantity supplied
in this question, there was only a change in price but no change in the quantity supplied.
so a change in supply and not a change in the quantity supply occured
determine supply per price
400 / 6 = 67
400 / 4 = 100
supply increased
A bill was introduced into Congress last year suggesting changes to the income tax code. Congress now passed this new tax reform act in the last session and over the next few years the new laws will begin to impact the nation. This is an example of what type of policy
Answer:
Macroeconomic fiscal policy.
Explanation:
Macroeconomics can be defined as the study of behaviors, performance and factors that affect the entire economy. Hence, it focuses on aggregate phenomena such as price level, economic growth, Gross Domestic Product (GDP), inflation, unemployment and national income levels with respect to the central bank, demand or supply shocks, government policies, aggregate spending and savings.
Fiscal policy in economics refers to the use of government expenditures (spending) and revenues (taxation) in order to influence macroeconomic conditions such as Aggregate Demand (AD), inflation, and employment within a country. Fiscal policy is in relation to the Keynesian macroeconomic theory by John Maynard Keynes.
A fiscal policy affects combined demand through changes in government policies, spending and taxation which eventually impacts employment and standard of living plus consumer spending and investment.
According to the Keynesian theory, government spending or expenditures should be increased and taxes should be lowered when faced with a recession, in order to create employment and boost the buying power of consumers.
At a total cost of $2,480,000, Herrera Corporation acquired 160,000 shares of Tran Corp. common stock as a long-term investment. Tran Corp. has 400,000 shares of common stock outstanding, including the shares acquired by Herrera Corporation.
Required:
Journalize the entries by Herrera Corporation.
Answer:
Explanation:
Journalizing is the approach taken by corporate organizations for recording daily operations and transactions in the organization. Organizations use it to produce the final accounts and assess the company's performance and productivity.
Assuming:
the current net income of the Tran Corp. = $510,000 &
A cash dividend of $1.10 / common share is paid by Tran Corp.
Then:
To record entry for income of Trans Corp:
Description Debit ($) Credit($)
Investment - Tran Corp. stock
(510000*(160000/400000) 204000
Tran Corp COmpany Income 204000
(To record income of Tran Corp Company)
The entry record for dividend received by cash:
Description Debit ($) Credit ($)
Cash (160000/1.10) 145,455
Investment - Tran Corp stock 145,455
(Record recieved dividend)
Even if a stock split has no information content, and even if the dividend per share adjusted for the split is not increased, there can still be a real benefit (i.e., a higher value for shareholders) from such a split, but any such benefit is probably small. True False
Answer:
True
Explanation:
Stock split is used to increase number of shares floating in the market. In this strategy current shares are increased by issuing more shares to current shareholders. This increases the number of shares which each shareholders holds while value of total shares remains the same.
It has been argued that the traditional model of a full-service, lead advertising agency is becoming obsolete. Discuss the changes occurring in the industry and how they are affecting the traditional lead agency model.
Answer:
Quilt
Explanatio
Hope it's right
Answer:
to complex to solve without the artical.
Explanation:
because there is no artical it cant be answered.
At a firm's quarterly dividend meeting held on December 5, the directors declared a $1.50 per share cash dividend to be paid to the holders of record on Monday, January 1. Before the dividend was declared, the firm's accumulated retained earnings balance and cash balance were $1,280,000 and $30,000 respectively. The firm has 10,000 shares of common stock outstanding. On January 2, the cash, dividends payable, and retained earnings accounts had balances of ________.
Answer: $15,000, $0, and $1,265,000, respectively
Explanation:
Based on the information given in the question, the total amount of dividend will be:
= Outstanding shares × Dividend
= 10000 × $1.50
= $15000
Amount of cash balance will be:
= Ending cash balance - Dividend
= $30000 - $15000
= $15000
Dividend payable will be:
= $15000 - $15000
= $0
Retained earnings will be:
= $1280000 - $15000
= $1265000
