BUSINESS COLLEGE

Manner, Inc. has 5,000 shares of 5%, $100 par value, noncumulative preferred stock and20,000 shares of $1 par value common stock outstanding at December 31, 2010. Therewere no dividends declared in 2009. The board of directors declares and pays a $45,000dividend in 2010. What is the amount of dividends received by the common stockholdersin 2010?a. $0b. $25,000c. $45,000d. $20,000

Answers

Answer 1
Answer:

Answer:

The amount of dividend is $20,000.

Explanation:

Calculate the dividend on common stock using the equation as follows:

Dividend = Dividend Declared - (Number of Preferred shares * parvalue)*5%

=$45,000−(5,000×$100×5%)

=$45,000−$25,000

=$20,000

​

Related Questions

The knowledge a firm possesses can be a source of competitive advantage. Describe ways that a firm can continuously learn to maintain its competitive position.
When total debits equal total credits on a trial balance, we can be assured that no errors of any sort occurred during the preceding steps in the accounting cycle.A. TrueB. False
Suppose that your demand schedule for dvds is as follows: price quantity demanded (income = $10,000) quantity demanded (income = $12,000) $8 40 dvds 50 dvds 10 32 45 12 24 30 14 16 20 16 8 12a. use the midpoint method to calculate your price elasticity of demand as the price of dvds increases from $8 to $10 if (i) your income is $10,000 and (ii) your income is $12,000. b. calculate your income elasticity of demand as your income increases from $10,000 to $12,000 if (i) the price is $12 and (ii) the price is $16.
"Suppose that a worker in Lago can produce either 5 units of oats or 20 pounds of tuna per year, and a worker in Abuta can produce either 20 units of oats or 5 pounds of tuna per year. There are 20 workers in each country. No trade occurs between the two countries. Lago produces and consumes 50 units of oats and 200 pounds of tuna per year while Abuta produces and consumes 200 units of oats and 50 pound of tuna per year. If trade were to occur, Lago would trade 60 pounds of tuna for 60 units of oats. If Lago now completely specializes in tuna production, how many pounds of tuna could it now consume along with the 60 units of imported oats?"
A property was acquired for $950,000 and then produced cash flows of $100,000, $120,000, $135,000, $135,000, and $125,000 at the end of years one through five, respectively. The property was then sold for $1,200,000 at the end of the fifth year. What was the internal rate of return for this investment?

Insurance.Susan,a trained nurse,was recently elected to the U.S.Senate.Susan is very concerned about the lack of insurance for many children and also working adults who cannot afford the insurance premiums.She proposes legislation that states are taxed sufficiently to provide health insurance coverage to children and that federal funds for state highways are denied to any state that does not also provide insurance coverage for uninsured adults.She also proposed that states with citizens earning higher than average incomes be taxed at a higher rate than other states.Bill,a senator,tells Susan that Congress lacks the authority to tax in this manner because the U.S.Constitution expressly reserves that right to the states.Ellen,another senator,tells Susan that Congress has no authority to link highway funds or any other funds with social welfare objectives.Sam,an administrative assistant,tells Susan that Congress is prohibited from taxing residents of one state at a higher rate than citizens of another state.Which of the following is true regarding Ellen's statement? A) Ellen is correct.
B) Ellen is correct only if the state is making efforts to put social programs into effect and is not acting unreasonably in refusing to provide needed services.
C) Ellen is partially correct in that Congress has no authority to link highway funds with social services,but any other funds may be linked to social services by executive order.
D) Ellen is partially correct in that Congress has no authority to link highway funds with social services,but other funds may be linked to social services by an act of Congress.
E) Ellen is incorrect.

Answers

Answer: E. Ellen is incorrect.

Explanation:

From the information provided, we can deduce that Bill is incorrect. This is because the statement made by Bill that "Congress lacks the authority to tax in this manner because the U.S.Constitution expressly reserves that right to the states" is incorrect. It should be noted that the constitution of the United States contains no such reservation.

Also, Ellen is incorrect. This is because the Congress has the authority to link highway funds or any other funds with social welfare objectives.

Pendergast, Inc., has no debt outstanding, and has a total market value of $180,000. Earnings before interest and taxes (EBIT) are projected to be $23,000 if economic conditions are normal. If there is a strong expansion in the economy, then EBIT will be 20% higher. If there is a recession, then EBIT will be 30% lower. Pendergast is considering a $75,000 debt issue with a 7% interest rate. The proceeds will be used to repurchase shares of stock. There are currently 6,000 shares of stock outstanding, and the relevant tax rate is 35%. a- Calculate ROE and EPS under each of the economic scenarios before any debt is issued. b- Repeat part a, assuming that the company goes through with the capitalization. c- Calculate the percentage changes in EPS when the economy expands or enters a recession.

Answers

Answer:

See the explanation below:

Explanation:

a- Calculate ROE and EPS under each of the economic scenarios before any debt is issued.

Under an expansion

Earnings before interest and taxes (EBIT) = $23,000 * (100% + 20%) = $27,600

Earnings after taxes = $27,600 * (100% - 35%) = $17,940

Return on equity (ROE) = Earnings after taxes / Total market value of equity = $17,940 / $180,000 =

0.0997, or 9.97%

Earnings per share (EPS) = Earnings after taxes / Number of shares of stock outstanding = $17,940 /

6,000 = $2.99 per share

Under a recession

Earnings before interest and taxes (EBIT) = $23,000 * (100% - 30%) = $16,100

Earnings after taxes = $16,100 * (100% - 35%) = $10,465

Return on equity (ROE) = Earnings after taxes / Total market value of equity = $10,465 / $180,000 =

0.0581, or 5.81%

Earnings per share (EPS) = Earnings after taxes / Number of shares of stock outstanding = $10,465 /

6,000 = $1.74 per share

b- Repeat part a, assuming that the company goes through with the capitalization.

Under an expansion

Earnings before interest and taxes (EBIT) = $23,000 * (100% + 20%) = $27,600

Interest on debt = $75,000 * 7% = $5,250

Page 2 of 2

Earnings after interest = $27,600 - $5,250 = $22,350

Earnings after taxes = $22,350 * (100% - 35%) = $14,527.50

Return on equity (ROE) = Earnings after taxes / Total market value of equity = $14,527.50/ $180,000 =

0.0807, or 8.07%

Earnings per share (EPS) = Earnings after taxes / Number of shares of stock outstanding = $14,527.50 /

6,000 = $2.42 per share

Under a recession

Earnings before interest and taxes (EBIT) = $23,000 * (100% - 30%) = $16,100

Interest on debt = $75,000 * 7% = $5,250

Earnings after interest = $16,100 - $5,250 = $10,850

Earnings after taxes = $10,850 * (100% - 35%) = $7,052.50

Return on equity (ROE) = Earnings after taxes / Total market value of equity = $7,052.50 / $180,000 =

0.0392, or 3.92%

Earnings per share (EPS) = Earnings after taxes / Number of shares of stock outstanding = $7,052.50 /

6,000 = $1.18 per share

c- Calculate the percentage changes in EPS when the economy expands or enters a recession.

Percentage change under expansion = ($2.42 - $2.99)/$2.99 = 0.1902 decrease, or 19.02% decrease.

Percentage change under recession = ($1.18 - $1.74)/ $1.74 = 0.3218 decrease, or 32.18% decrease

Buyers rush to purchase stocks in California vineyards following a forecast of a 30 percent decline in this year's grape harvest. What happens in the California wine market as a result of this announcement?

Answers

Answer:

The demand curve for wine shifts to the right

Explanation:

As per the forecast, there should be a decline in grape harvest. This induces the buyers to purchase more quantity of grapes in an anticipation of decline in future harvest which would eventually make grapes costlier than now.

Production of wine depends upon the availability of inputs. Grape being one of the necessary inputs. This means if in future, price of grapes rise, the production of wine would be costlier, which would raise the price of wine.

As a consequence of such an announcement, the wine market would experience an immediate increase in demand for wine which would shift the demand curve to the right.

On January 1, Year 1, Stratton Company borrowed $100,000 on a 10-year, 7% installment note payable. The terms of the note require Stratton to pay 10 equal payments of $14,238 each December 31 for 10 years. The required general journal entry to record the first payment on the note on December 31, Year 1 is:

Answers

Answer:

Dr interest expense $7,000

Dr notes payable $7,238

Cr cash                                     $14,238    

Explanation:

The first task is to compute interest expense on the loan in year 1 which is shown below:

interest expense=$100,000*7%

interest expense=$7,000

Principal repayment=repayment-interest repayment

Principal repayment=$14,238-$7,000=$7,238

The double entries are to debit interest expense and notes payable with $7,000 and $7,238 respectively while cash is credited with $14,238 as an outflow of cash.

________ are industrial products that aid in the buyer's production or operations, including installations and accessory equipment.A) Unsought products
B) Convenience products
C) Capital items
D) Specialty items
E) Repair items

Answers

Answer:

C) Capital items

Explanation:

Capital items are the goods that should have physical existence also it is to be used at the time of manufacturing the product and services. It involves various items like - building, equipment, tools, etc

These are not categorized into a finished goods but are used for making the finished goods

Therefore in the given situation, the option C is the most appropriate and hence the same is to be considered

Final answer:

Capital items are industrial products that aid in the buyer's production or operations, including installations and accessory equipment.

Explanation:

The correct answer is C) Capital items. Capital items are industrial products that are used in the production or operations of a buyer's business. These can include installations and accessory equipment that aid in the overall functioning of the business.

For example, if a manufacturing company needs machinery to produce its products, that machinery would be considered a capital item. It is a long-term investment that is essential for the company's operations.

Other examples of capital items include vehicles, computer systems, and specialized tools or equipment.

Learn more about Capital items here:

brainly.com/question/32177395

#SPJ3

An asset is said to be illiquid when: Group of answer choices it cannot be used to settle debts. it cannot act as a store of value. it is an illegal tender. it cannot be readily exchanged for goods. it lacks purchasing power.

Answers

Answer:

it cannot be used to settle debts

Explanation:

The assets are said to be liquid when it is convertible into cash and the liquid asset we called as a current asset. The liquidity of an asset is important to pay off the short term debt or obligations arise.

It can be in terms of account payable, inventory, prepaid insurance, etc

The asset that said to be illiquid when it is not be used for settling the debts

Hence, the first option is correct

Other Questions
If 19,000 units are produced, what are the per unit manufacturing overhead costs incurred
A company estimates the following manufacturing costs for the next period: direct labor, $536,000; direct materials, $211,000; and factory overhead, $119,000. Required: 1. Compute its predetermined overhead rate as a percent of direct labor. 2. Compute its overhead cost as a percent of direct materials.
"When The Bank of Bank County borrows funds from the Federal Reserve; the rate the Fed charges the commercial bank is called the _____ rate."
Andrews Company manufactures a line of office chairs. Each chair takes $14 of direct materials and uses 1.9 direct labor hours at $16 per direct labor hour. The variable overhead rate is $1.20 per direct labor hour, and the fixed overhead rate is $1.60 per direct labor hour. Andrews expects to have 675 chairs in ending inventory. There is no beginning inventory of office chairs. unit product cost. budgeted ending inventory