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Question
On July 31, a corporation reported the following stockholders' equity:
| Common stock, $10 par value, 200,000 shares authorized, 100,000 shares issued and outstanding | $1,000,000 |
| Retained earnings | 350,000 |
| Total stockholders equity | $1,350,000 |
On July 31, the market value of the corporation's stock was $15 per share. The directors were considering declaring a 10% or 30% stock dividend but wanted to know what effect each stock dividend would have on stockholders' equity. Calculate the balances in the following accounts for each proposed stock dividend distribution.
| Balances after | Balances after | ||
| 10% Stock Dividend | 30% Stock Dividend | ||
| Common stock......................... | _____________ | _____________ | |
| Contributed capital in | |||
| excess of par value, | |||
| Common stock......................... | _____________ | _____________ | |
| Retained earnings......................... | _____________ | _____________ | |
| Total stockholders equity | ______________ | _____________ | |
Answer
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Related questions
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Q:
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B. Neither product A nor product B should be processed further.
C. Only product B should be processed further.
D. Only product A should be processed further.
E. A processing further decision cannot be made from the available data.
Q:
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B. Income will increase by $7 per unit.
C. Income will increase by $12 per unit.
D. Income will decrease by $12 per unit.
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Q:
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Q:
Assume markup percentage equals desired profit divided by total costs. What is the correct calculation to determine the dollar amount of the markup per unit?
A. Total cost times markup percentage.
B. Total cost per unit times markup percentage per unit.
C. Total cost per unit divided by markup percentage per unit.
D. Markup percentage per unit divided by total cost per unit.
E. Markup percentage divided by total cost.
Q:
Capital budgeting decisions are generally based on:
A. Tentative predictions of future outcomes.
B. Perfect predictions of future outcomes.
C. Results from past outcomes only.
D. Results from current outcomes only.
E. Speculation of interest rates and economic performance only.
Q:
If net present values are used to evaluate two investments that have equal costs and equal total cash flows, the one with more cash flows in the early years has the higher net present value.