Squash Delight Inc. has the following balance sheet: The firm's stock sells for S12 a share. a. Show the effect on the capital accounts of a two-for-one stock split. (Do not round intermediate calculations and round your answers to the nearest whole dollar.) b. Show the effect on the capital accounts of a 10 percent stock dividend. Part bis separate from part a. In part b. do not assume the stock split has taken place. (Do not round intermediate calculations and round your answers to the nearest whole dollar.) c. Based on the balance in retained earnings, which of the two dividend plans is more restrictive on future cash dividends? 1. Stock split 2. Stock dividend
Answers
a. A two-for-one stock split means that each shareholder will receive two shares for every one share they currently hold. This will effectively double the number of shares outstanding while reducing the stock price per share.
In the case of Squash Delight Inc., if the stock sells for $12 per share and there are currently 100,000 shares outstanding, the total capital accounts would be $1,200,000 ($12 x 100,000). After the stock split, there would be 200,000 shares outstanding and the stock price would be halved to $6 per share. The total capital accounts would remain the same at $1,200,000 ($6 x 200,000).
The effect of a stock split is purely cosmetic, as it does not change the overall value of the company. It simply increases the number of outstanding shares while decreasing the stock price per share proportionally.
b. A 10 percent stock dividend means that each shareholder will receive an additional 10 shares for every 100 shares they currently hold. In the case of Squash Delight Inc., if there are currently 100,000 shares outstanding and the stock price is $12 per share, the total capital accounts would be $1,200,000. After the stock dividend, there would be 110,000 shares outstanding and the stock price would remain at $12 per share. The total capital accounts would increase to $1,320,000 (($12 x 110,000) + ($12 x 10,000)).
A stock dividend is also a cosmetic change that does not affect the overall value of the company. It simply increases the number of outstanding shares while decreasing the stock price per share proportionally.
c. A stock split makes it harder to pay out cash dividends in the future based on the remaining retained earnings. This is because a stock split increases the number of outstanding shares, which means that the company will need to pay out more dividends to maintain the same dividend per share. In contrast, a stock dividend does not affect the overall amount of dividends paid out, as the total value of the dividends is spread out over a larger number of shares. Therefore, if Squash Delight Inc. wanted to maintain its current dividend payout, a stock split would be more restrictive on future cash dividends.
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Related Questions
Which of the following is an example of a natural monopoly? O a natural gas supplier in a city O a local gas station O an airline company O a national fast-food chain
Answers
The following is an example of a natural monopoly is A. a natural gas supplier in a city.
A natural monopoly is a type of monopoly that arises when the cost of producing a good or service is significantly lower with a single supplier than with many suppliers. Natural monopoly occurs when a single firm supplies the whole market at a lower price than what would have been possible for two or more firms. In a natural monopoly, there are high fixed costs of production, which means it is cheaper for one firm to produce the whole output. This is usually seen in the utility industry, such as gas, water, and electricity, where it would be inefficient to have more than one supplier.
The natural gas supplier in a city is an example of a natural monopoly because the high costs of maintaining a network of pipes to supply gas make it very costly to have more than one supplier. The supplier with the network will have a significant advantage over any other company that wishes to enter the market, making it virtually impossible for anyone else to compete. So therefore the correct answer is A. a natural gas supplier in a city, is is an example of a natural monopoly.
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Suppose the demand function for gasoline in the United States for 2015 was Q = 488 - 7·P + 0.0231·Y - 18·MPG, where Q is annual U.S. gasoline consumption in millions of gallons per day, P is the retail price of gasoline in $/gallon, Y is real disposable income in billions of 2012 dollars, and MPG is the fleet efficiency in miles per gallon. Assume in 2021 P = 3.00, Y = 16000, and MPG = 26. Note that MPG is the long-run response to price changes, which means the coefficient -7 for price captures just the short-run response to price changes.
1. What is 2015 gasoline consumption, in millions of gallons per day? A. 525 B. 469 C.330 D.300
2. What is the short-run point price elasticity of gasoline demand, approximately? A. -0.06 B. -0.6 C. -6 D. -60
3. Assume a $1 increase in the price of gasoline causes MPG to increase by 4 in the long run to 30. This means that, in the long run, a $1 increase in the price of gasoline cuts 18·4 = 72 million gallons per day from domestic gasoline consumption. What is the long-run point price elasticity of demand for gasoline, approximately? A. -0.1 B. -0.2 C. -0.4 D. -0.6
4. What number on the right comes closest to the point of income elasticity of demand? A. 0.10 B. 0.25 C. 0.50 D. 1.00
Note: A, B , C, and D are choices of answers
Answers
1. What is 2015 gasoline consumption, in millions of gallons per day?The given demand function for gasoline in the US for 2015 is Q = 488 - 7P + 0.0231Y - 18MPGWhere,
Q represents annual US gasoline consumption in millions of gallons per dayP represents the retail price of gasoline in $/gallonY represents real disposable income in billions of 2012 dollarsMPG represents the fleet efficiency in miles per gallon.The values of P, Y, and MPG are given for the year 2021. We need to calculate the value of Q for the year 2015.
The values of P, Y, and MPG for the year 2015 are not given. So, we cannot calculate the value of Q for the year 2015. Thus, the main answer is D. 300 It is given that the demand function for gasoline in the United States for 2015 was Q = 488 - 7P + 0.0231Y - 18MPGThe given demand function can be written as Q = a + b1P + b2Y + b3MPG
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In September, you made a profit of $5,456,963 with expenses of $2,456,654. What was your total revenue?
Answers
The total revenue when the profit and expenses are given so it should be considered as the $7,913,617.
Calculation of the total revenue:We know that
Profit is $5,456,963
And, expenses is $2,456,654
We know that
Profit = Revenue - Expenses
$5,456,963 = Revenue - $2,456,654
So, the revenue is
= $5,456,963 + $2,456,654
= $7,913,617
Hence, The total revenue when the profit and expenses are given so it should be considererd as the $7,913,617.
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Several years ago, Jeff purchased stock for $5,125. Last month he sold the stock for
$7,411. What was his gross capital gain?
Answers
If Several years ago, Jeff purchased stock for $5,125. Last month he sold the stock for $7,411. His gross capital gain is: $2,286.
Gross capital gainIn order to determine the gross capital gain since we were told that he purchased stock for the amount of $5,125 in which last month he sold the stock for the amount of $7,411 we have to deduct the current stock selling price form the stock purchase price by making use of this formula to determine the gross capital gain.
Gross capital gain = Current stock selling price - Stock purchase price
Where:
Current stock selling price = $7,411
Stock purchase price = $5,125
Let plug in the formula so as to find the gross capital gain
Gross capital gain = $7,411 - $5,125
Gross capital gain =$2,286
Therefore If Several years ago, Jeff purchased stock for $5,125. Last month he sold the stock for $7,411. His gross capital gain is: $2,286.
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During a period of inflation, firms using LIFO will have the: A. lowest cost of goods sold, the highest net income, and the lowest inventory value. B. highest cost of goods sold, the lowest net income, and the highest inventory value. C. lowest cost of goods sold, the highest net income, and the highest inventory value. D. highest cost of goods sold, the lowest net income, and the lowest inventory value.
Answers
Answer:
The answer is D.
Explanation:
For LIFO(Last in First out), its inventory value(that is, ending inventory) has lowest value because the ending value reflects the cost of earlier purchased inventory.
The cost of sales has the highest value because of the lowest value of the ending inventory.
And lastly, its net income will be at his lowest because of the highest cost of sales.
If the fixed costs are $10928 and the variable cost/unit is $13 and the break even is 115 unit, what is the selling price per unit?
Answers
10.800 selling per unit
Subject: Accounting
Please answerr
On 1 May Sally owed William $400. On 21 May she purchased goods, list price $1440, subject to a trade discount of 25%. She returned one third of these goods on 24 May.How much did Sally owe William on 31 May? Include working.
A $630 B $720 C $1030 D$1120
Answers
Answer:
D) $1120
Explanation:
The goods Sally purchase were $1440, and with the 25% discount, she would have paid $1080, because 25% of $1440 is $360. Since she returned 1/3, she would have only spent $720, because $1080/3 is also $360. $720+$400 from the beginning would be $1120
Answer:
l believe the answer is a
Mention any there objectives of Accounting
Answers
Answer:
objectives of accounting in any business are:-
systematically record transactions sort and analysing them, prepare financial statements position, and aid in decision making with financial data and information about the business.
hope it is helpful....
During which step of the marketing plan do marketers make important decisions about how they will allocate their scarce resources to their various products and services?.
Answers
During the implementation of the marketing mix in the plan, professionals are able to make more effective decisions about allocating resources to their products and services.
Marketing mixCorresponds to a technique that serves to influence the potential public to consumer the products and services of a brand, through the implementation of strategies that help to achieve positive results.
There are four relevant pillars in the marketing mix, which must be consistently established for a company to achieve its goals, which are:
ProductPricePlacePromotionTherefore, through the integration of the marketing mix a company can develop a focused strategy, strengthen the relationship with the consumer, publicize and strengthen its brand, generating value and competitiveness.
The correct answer is:
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which of these is an official policy act of government against each other?
a) boycott
b) embargo
Answers
This is a receipt for a purchase made at a restaurant in
Sacramento, California.
The total cost of the food and drinks before taxes was
The buyer paid vin sales tax.
Based on the receipt, Sacramento has a sales tax rate
of
Answers
Answer:
10.00 , .85 , 8.5
Explanation:
Answer:
This is a receipt for a purchase made at a restaurant in Sacramento, California.
The total cost of the food and drinks before taxes was
✔ $10.00
.
The buyer paid
✔ $0.85
in sales tax.
Based on the receipt, Sacramento has a sales tax rate of
✔ 8.5%
.
Bank statements, business reports, and tax records are filed according to subject and then are subdivided _______.
Answers
Answer:
chronologically
Explanation:
The important documents for the business organization i.e. bank statements, reports of business, tax records should be filed as per the subject and then it subdivided in a chronological manner i.e. one by one
These documents should be kept with proper care and diligence also the information related to these documents should not be disclosed out to any third party i.e. only authorized persons should be involved
Think about a consumer with a utility function given by u=x1x2, he is facing a budget constraint: p1x1+p2x2<= I.
A) Please derive the Marshallian demand functions for x1 and x2.
B) How much of each good will the consumer purchase if I =8, p1=1 and p2=4?
Answers
Given that the consumer has a utility function given by `u = x1 * x2` and is facing a budget constraint `p1 * x1 + p2 * x2 ≤ I`.We are to derive the Marshallian demand functions for `x1` and `x2` and determine how much of each good will the consumer purchase if `I = 8`, `p1 = 1` and `p2 = 4`.Solution:The consumer’s problem is to maximize their utility function `u = x1 * x2` subject to the budget constraint `p1 * x1 + p2 * x2 ≤ I`.The Lagrangian function `L` is given by;`L = x1 * x2 + λ [I − p1 * x1 − p2 * x2]
`Differentiating the Lagrangian function with respect to `x1`, `x2` and `λ` we get;`∂L/∂x1 = x2 − λp1 = 0` …..(1)`∂L/∂x2 = x1 − λp2 = 0` …..(2)`∂L/∂λ = I − p1 * x1 − p2 * x2 = 0` …..(3)Solving the above equations for `x1`, `x2` and `λ` gives the Marshallian demand functions.`x1 = I/(2 * p1)` and `x2 = I/(2 * p2)`Therefore, the demand functions for x1 and x2 are given by;x1 = I/(2 * p1) …..(4)x2 = I/(2 * p2) …..(5) Substituting the given values, `I = 8`, `p1 = 1` and `p2 = 4` into equations (4) and (5) above;x1 = 8/(2 * 1) = 4x2 = 8/(2 * 4) = 1 The consumer will purchase `4` units of `x1` and `1` unit of `x2` if `I = 8`, `p1 = 1` and `p2 = 4`.
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Risk is the __________ about the outcome or payoff of an investment in the future.
Answers
Risk is the degree of ambiguity surrounding the result or return on an investment in the future.
What does risk in economics mean?Risk is the term used in finance to describe the degree of uncertainty and/or potential financial loss a decision to make an investment entails. Investors typically want for bigger returns when investment hazards increase to make up for the increased risk. The profits and hazards associated with each saving and investment product vary.
What Are the Investment Risks?Investment risk is the likelihood or ambiguity of losing money on an investment rather than expecting to make money as a result of a decline in the fair price of securities like bonds, shares, real estate, etc.
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what is the meaning of cheque stub
Answers
Answer:
A check stub is the part of a check that is kept by the payee with information such as the check number, date, and amount. ... A check stub is the part of a check that is kept by the payee with information such as the check number, date, and amount.
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Entrepreneurs file a DBA document when using another name for their company. Why are DBA’s necessary?
A). DBA’s provide trademarking of the company logo.
B). DBA’s provide identification for taxes.
C). DBA’s are needed to open bank accounts.
Answers
The present value of a series of cash flows is the amount you would need today to exactly duplicate those future cash flows. True or false?.
Answers
True . The present value of a series of cash flows is the amount you would need today to exactly duplicate those future cash flows,
Recognizing Cash Flow
The amount of money that flows into and out of a business is referred to as its cash flow. Sales provide income for businesses, which also incur costs. They might also make money from investments, royalties, licensing agreements, and interest. Additionally, they could provide things on credit with the promise of payment later.
Evaluating the scope, timeliness, and accuracy of financial reporting is one of the most important objectives.
One of the most crucial goals of financial reporting is to evaluate the size, timeliness, and unpredictability of cash flows as well as their sources and destinations. It is crucial for determining the liquidity, adaptability, and general financial success of an organization.
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a major effect of the rise in the rate of productivity growth in the united states is a(n)
Answers
As per the concept of GDP, a major effect of the rise in the rate of productivity growth in the united states is a(n) is rise in the growth of living standards.
The term GDP in business is defined as a measurement that seeks to capture a country's economic output where as each countries with larger GDPs will have a greater amount of goods and services generated within them, and will generally have a higher standard of living.
Here we have given that rise a major effect of the rise in the rate of productivity growth in the united states.
According to the definition of GDP, if the productivity growth is rising, then corresponding product standard will be increased based on these. Thus will make the increment in that living standard also.
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the process of putting money in different types of investments for the purpose of reducing the overall risk of the portfolio is
Answers
The process of putting money in different types of investments for the purpose of reducing the overall risk of the portfolio is called diversification.
For investors trying to reduce their investment risk, portfolio diversification is the practice of choosing various kinds of investments within every category of assets. Diversification among different types of assets may also assist to mitigate the negative effects of significant market fluctuations on your portfolio.
A diversified portfolio attempts to restrict exposure to any one asset or risk by combining a variety of different asset classes and investment vehicles. As it allows experimenting with several distinct assets, diversification may be perceived by some investors as making investing more enjoyable. The likelihood of finding good news may also rise with diversification. Positive news benefiting one of hundreds of firms may be advantageous to your portfolio rather than waiting for good news unique to one company.
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Which qualities of the voice are described below?
Proper ____ involves speaking clearly and not mumbling. Good _____
means using acceptable stress patterns
Proper
when saying words.
Answers
Answer: articulation; pronunciation
Explanation:
Proper articulation involves speaking clearly and not mumbling. Also, good pronunciation means using acceptable stress patterns when saying words.
Someone who is articulate wwn speaking is able to speak well, clearly and distinctly. This is important so that listeners can be able to differentiate between the words that are said and also get the message that is passed. Good Pronunciation simply means the standard and appropriate way to say a word.
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Amanda submitted her taxes, but someone from the IRS called her because they want to talk more about her tax return. What is Amanda MOST likely experiencing?
estimated payment
tax audit
tax deduction
Answers
Answer
tax detection
Explanation:
just is
Explanation:
which of the following does not affect the current liabilities section of the balance sheet?
Answers
The following item does not affect the current liabilities section of the balance sheet: Owner's equity: Owner's equity represents the owner's residual interest in the assets of a business after deducting liabilities.
It is part of the owner's claim on the company's assets and is reported in the equity section of the balance sheet, separate from current liabilities.
On the balance sheet, current liabilities represent obligations that are expected to be settled within the normal operating cycle of the business or within one year. These obligations typically arise from day-to-day operational activities and include items such as accounts payable, accrued expenses, short-term loans, and current portions of long-term debt. Changes in owner's equity, on the other hand, do not directly impact the current liabilities section.
Owner's equity is affected by factors such as investments made by the owner, withdrawals taken by the owner, and the company's net income or net loss. These changes are reflected in the equity section of the balance sheet and do not have a direct impact on the current liabilities section.
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3 td
(1 po
mm
8. When Dr. Norman travels, she always stays at a Hawks family hotel. She is brand loyal, and
thinks that Hawks offers the best service. On this trip, Dr. Norman stayed at three different
Hawks hotels. Customer service was excellent at two of the hotels, but at the last hotel, the
person checking in guests was rude. Dr. Norman completes a comment card on each hotel,
knowing that Hawks strives for excellent customer service. This scenario exemplifies which
service characteristic?
Omarketability
Ovariability
O inseparability
O intangibility
Answers
Answer:
Variability
Explanation:
Variability expresses the notion that a service may vary in standard or quality from one provider to the next or from occasion to the next.
what term is used to describe the most effective and efficient ways accomplishing business processes? question 25 options: normalization best practices functional dependency intellectual capital
Answers
Best practices are the term used to describe the most effective and efficient ways of accomplishing business processes.
So, the correct option is B.
Finding the greatest working practices to accomplish your business objectives is what is referred to as "best practice" in the business world. It entails keeping current with how profitable companies in your industry and others conduct themselves, as well as comparing your methods of operation to those of the market leaders.
A standard or collection of recommendations recognized to result in positive outcomes when followed is referred to as "best practices. The execution of a job or configuration of an object is connected to best practices. A governing body or an organization's internal policies may set strict best practice criteria. Best practices are a set of rules, moral principles, or concepts that reflect the best or most responsible course of action for a company or investor.
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The given question is incomplete. The complete question is:
What term is used to describe the most effective and efficient ways accomplishing business processes?
options:
A. Normalization
B. Best Practices
C. Functional Dependency
D. Intellectual Capital
It is said that there are a number of steps in designing an effective service system which include a) Establishing procedures to be followed in case of service failure b) Identifying failure-prone areas can be enabled by a service blueprint technique c) Obtaining feedback from the customers and continuous review of service delivery d) Defining and incorporating service standards and explicitly communicating them to the customers e) Empowerment enabled through training and other HR practices List them in the right order.
Answers
Answer is in a file below
cutt.us/tWGpn
you find a particular stock has an annual standard deviation of 61 percent. what is the standard deviation for a six-month period?
Answers
The standard deviation for a six-month period is approximately 43.16 percent.
To calculate the standard deviation for a six-month period, we need to use the following formula:
SD(6 months) = SD(annual) * square root of (6/12)
where SD(annual) is the annual standard deviation, and we multiply it by the square root of the fraction of the year that we're interested in, which is 6/12 or 0.5 for a six-month period.
Substituting the given values, we get:
\(SD(6 months) = 61% * sqrt(0.5)\)
\(SD(6 months) = 61% * 0.7071\)
SD(6 months) = 43.16% (rounded to two decimal places)
Therefore, A six-month period's standard variation is roughly 43.16 percent.
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When making decisions, managers often must decide between doing what is beneficial for the firm in the short term, and what is beneficial for both the firm and society in the long term. To address this conflict, a firm must
Answers
When making decisions, managers are often faced with a conflict between what is beneficial for the firm in the short-term and what is beneficial for both the firm and society in the long-term.
This conflict arises because the actions that benefit the firm in the short-term may not necessarily align with the interests of society as a whole, which can lead to negative consequences for both the company and society in the long-term.
To address this conflict, a firm must adopt a long-term orientation and consider the broader social and environmental impacts of its decisions. This means looking beyond immediate financial gains and recognizing that actions taken today can have far-reaching implications for the company's reputation, customer loyalty, employee morale, and overall sustainability.
Firms that prioritize social responsibility and sustainable business practices are more likely to build strong relationships with stakeholders, including customers, employees, investors, and regulators. They are also better equipped to weather economic downturns and other disruptions, as they have diversified their risk and invested in building resilient supply chains and communities.
Ultimately, the key to addressing the conflict between short-term gains and long-term benefits is a commitment to corporate social responsibility (CSR) and sustainable business practices. By prioritizing the needs of society and the environment alongside those of shareholders, firms can create value for all stakeholders over the long-term, ensuring their continued success and impact.
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Based on the following information, what amount would be subtracted from the bank balance side of a checking account reconciliation? Service charge $43, Outstanding checks $300, Interest $13, Deposit in transit $880
Answers
Answer:
Outstanding checks $300
Explanation:
The amount that should be amount deducted from the bank balance side of a checking account reconciliation should be the OUTSTANDING CHECKS of the amount of $300 reason been that a company or an organisation can have outstanding checks in a situation where the company has issued a check in which such check has already be recorded in the company ledger account but the check has not yet clear the bank account which may inturn makes the balance in the bank account to be greater than the amounts that the company has as cash.
solve pls
e) Which one of the followings is for 'end-of-life' product choices? 1. Repair, refurbishment, reuse 2. Recycle and landfill 3. All of above
Answers
The end-of-life product choices that involve repair, refurbishment, and reuse are for the following term: 1. Repair, refurbishment, reuse.
What are the "end-of-life" product choices? In the context of product choices, "end-of-life" refers to the point at which a product is no longer useful or functional, and must either be disposed of or recycled. At this point, the product's life cycle is complete, and it is no longer of use to its owner. This could be due to damage, wear and tear, or obsolescence. As a result, end-of-life product choices have emerged to help manage waste and promote sustainability. There are a variety of end-of-life product choices available, depending on the product in question and its specific requirements. Some common choices include Repair: This involves fixing a damaged or broken product so that it can continue to be used. This is an especially useful option for products that are expensive to replace or that have sentimental value.
Refurbishment: This is a more extensive version of repair that involves replacing or updating some of the product's components to extend its lifespan. This can be especially useful for items like computers or smartphones that can benefit from upgraded software or hardware. Reuse: This involves finding new uses for a product that is no longer needed in its original capacity. This could include donating it to a charity, selling it secondhand, or using it for a new purpose.
Recycle and landfill: When a product is no longer repairable, reusable, or refurbish able, it may need to be recycled or disposed of in a landfill. Recycling involves breaking down the product into its component parts and using those parts to create new products. A landfill involves burying the product in a designated area. Both recycling and landfill have a significant impact on the environment. Landfills take up space and can contaminate the surrounding soil and water with toxic chemicals. Recycling, on the other hand, requires significant amounts of energy and resources to process and transport recycled materials.
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Suppose that if your income is $100,000, your tax is $20,000, but if your income is $200,000, your tax is $45,000. Such a tax is
Answers
Answer:
"Progressive" would be the correct answer.
Explanation:
A Progressive tax was indeed determined by the capability of the tax authorities to charge or compensate. It wants to inflict a lower corporate rate of taxation on low-wage earners unlike those with maximum income levels. This would be generally accomplished by establishing taxation levels for the group of tax-paying citizens based on income frequencies.That is why the aforementioned seems to be the correct approach.