This is likely due to an organizational culture that top managers are not committed. A lack of trust in the leadership team or the company as a whole is one source of resistance to change.
A lack of trust can have an impact on turnover and employees giving leadership the benefit of the doubt when problems arise. Human capital resources have been significantly increased. The competition's innovation becomes irrelevant. Management is encouraged to invest in innovation. Bullying and harassing people into towing the line is not an effective method of overcoming resistance to change. One should not oppose any deviation or change in an organizational by harassing or bullying others.
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Vanya inc. charter authorizes 1000 shares of stock at a stated value of $1 per share. Vanya sells 50 shares of stock at its initial offering for $10 [er share. The journal entry to record this transaction?
Credit for Paid-In Capital, in Surplus of Stated Worth for $450, $50 toward Common Stock, and $500 toward Cash.
Why do you use the term "Common Stock"?A form of business equity and a kind of security is common stock. Within the borders of the United States, the words vote share and common share are widely used. In the UK as well as other Commonwealth nations, they are referred to as share capital or ordinary shares. A investor holds 1% of the company if they hold shares of a company of the ordinary stock. This investor will receive $100 (1,000 units X $0.10) in dividends if the company declares a $0.10 per share dividend.
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Please answer the questions in the photo
2. The types of businesses that market their goods are businesses that would want to reach a larger consumer base for their products
The businesses that market goodsVarious types of businesses market goods and services. These businesses can be classified based on the nature of the products or services they offer, the target market they serve, or the way they sell their goods and services.
One way to classify businesses is by the products or services they offer, such as:
Consumer goods: These are products meant for personal or household use, such as clothing, electronics, or food. Examples of businesses that market consumer goods include Walmart, Best Buy, and McDonald's.
Business-to-business (B2B) goods: These are products or services that companies sell to other businesses. Examples include raw materials, office supplies, and consulting services. Businesses that market B2B goods include Staples, Accenture, and Grainger.
Services: These are non-tangible offerings, such as healthcare, education, or banking. Examples of businesses that market services include hospitals, universities, and Bank of America.
Another way to classify businesses is by the way they sell their goods or services, such as:
Brick-and-mortar: These are businesses with a physical location where customers can come to buy products or services. Examples include Target, Starbucks, and Home Depot.
E-commerce: These are businesses that sell products or services through the internet, such as Amazon, eBay, and Etsy.
Direct sales: These are businesses that sell products or services directly to consumers, often through home-based sales parties or personal consultations. Examples include Avon, Mary Kay, and Tupperware.
3. If you're interested in starting a retail business, here are some types of retailers and their pros and cons to consider:
Brick-and-mortar store: This is a traditional retail store with a physical location. Pros include the ability to offer a personalized shopping experience, the opportunity to connect with the local community, and the ability to display products for customers to see and touch. Cons include the high overhead costs of renting or owning a storefront, the need to hire and manage employees, and the risk of losing business to online competitors.
E-commerce store: This is a retail business that operates exclusively online. Pros include the ability to reach a wider customer base, the convenience of shopping from home, and the lower overhead costs of not needing a physical storefront. Cons include the need to invest in website design and development, the difficulty of standing out among competitors, and the challenges of managing shipping and returns.
Pop-up store: This is a temporary retail location that can be set up in various places, such as a mall or a street corner. Pros include the ability to test the market and experiment with different locations, the flexibility of not being tied to a long-term lease, and the opportunity to create buzz and excitement around the brand. Cons include the need to constantly move and set up shop, the challenges of finding a suitable location, and the risk of not generating enough revenue during the limited time period.
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Find the mean, median and mode for the above set of data
Answer:
a. Mean = 35.2 ≈ 35
b. Median = 35.6 ≈ 36
c. Mode = 36.6 ≈ 37
Step-by-step Explanation:
==>Given:
Class of ages in yrs
No. of cases of each class = f
Midpoint of each class = x
Product of midpoint and no. of cases of each class = fx
==>Required:
a. Mean
b. Median
c. Mode
==>SOLUTION:
a. Mean = (Σfx)/Σf
Σf = sum of no. of cases = 5+10+20+22+13+5 = 75
Σfx = 47.5+195+590+869+643.5+297.5 = 2,642.5
Mean = 2,642.5/75 = 35.2 ≈ 35
b. Median = Lm + [((Σf/2) - Cfb)/fm]Cw
Our median is between the 37th and the 38th term, which can be found in the class interval 35-44. This is our median class.
Lm = Lower class boundary of the median class = lower limit of the Medina class + upper limit of the class before the median class ÷ 2 = (35+34)/2 = 34.5
Σf/2 = 75/2 = 37.5
Cfb = Cumulative frequency of class before the median class = 5+10+20 = 35
fm = frequency of the Medina class = 22
Cw = Class width = upper class boundary - lower class boundary = 44.5-34.5 = 10
Median = 34.5 + [(37.5-35)/22] × 10
= 34.5 + [2.5/22] × 10
= 34.5 + [25/22]
= 34.5 + 1.1
= 35.6 ≈ 36
c. Mode = Lm + [∆¹/(∆¹+∆²)]Cw
Modal class = (35-44) [i.e. the class with the highest frequency, which is where our mode falls in]
Lm = lower class boundary of the modal class = lower limit of the modal class + upper limit of the class before the modal class ÷ 2 = (35+34)/2 = 34.5
∆¹ = difference between the frequency of the modal class & the frequency of the class before the modal class = 22 - 20 = 2
∆² = difference between the frequency of the modal class & the frequency of the class after the modal class = 22 - 13 = 9
Cw == Upper class boundary - Lower class boundary = 44.5 - 34.5 = 10
Mode = 34.5 + [2/(2+9)] × 10
= 34.5 + [2/11] × 10
= 34.5 + [20/11]
= 34.5 + 1.8
Mode = 36.6 ≈ 37
Calculate the present values P of an annuity in which $10,000 is to be paid out annually for a period of 25 years, assuming an interest rate of 0.03. Round to the nearest dollar.
The present value of the annuity, which is the present worth of a series of equal payments, can be calculated by discounting each payment to its present worth. Annuity is $5,164.
To calculate the present value of an annuity, we use the formula:
\(PV = A / (1 + r)^t\)
where:
A = $10,000 (annual payment)
r = 0.03 (interest rate)
t = 25 (number of years)
Plugging in the values:
\(PV = $10,000 / (1 + 0.03)^25PV = $10,000 / 1.03^25PV = $10,000 / 1.945623065PV = $5,164.48\)
Rounding to the nearest dollar:
PV = $5,164
So, the present value of the annuity is $5,164.
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Calculate the present values P of an annuity in which $10,000 is to be paid out annually for a period of 25 years, assuming an interest rate of 0.03. Round to the nearest dollar?
what is your analysis on walmart financial health as of january 2021 compare to 2022
Which situation is an example of indirect taxation?
OA. Stores charge sales tax on each purchase and give that money to
the government.
OB. Homeowners must pay a percentage of their home's worth to the
government.
OC. Businesses must send a portion of their income each year to the
government.
OD. Every citizen sends the government money to support the armed
forces.
SUBMIT
Option A is the correct answer. Indirect taxation is the situation where taxes are imposed on products or services and not directly on individuals. Therefore, the example of indirect taxation in the situation given is when stores charge sales tax on each purchase and give that money to the government.
Stores charge sales tax on each purchase and give that money to the government is an example of indirect taxation.Indirect taxation is a method of taxation in which individuals are not taxed directly, but instead, the tax is paid through an intermediary.
The tax is generally imposed on products or services. This tax, which is passed on to the customer as part of the price of the good or service, is then collected by the seller and forwarded to the government.
Sales tax, excise tax, and customs duty are all examples of indirect taxes.
Therefore, Option A is the correct answer.
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What is the best way to revise this sentence to be more like standard business English? A. I talked with other workers and they are in the same situation I am in. B. I talks with other workers and they are in the same situation as me. C. I talk with another workers - she is in the same situation as me. D. I talked with other workers who are in the same situation I am in.
Answer: A
Explanation:
Wilma sells her house for $600,000 two months after her husband passed away. They had purchased the house in 1952 for $58,000. Assuming they met the requirement for filing jointly, on what amount will Wilma have to pay income tax?
Wilma can exclude $500,000 of the gain from the sale of the house from her taxable income if she meets the requirements for married filing jointly.
What is the gain on the sale?The gain on the sale is $600,000 - $58,000 = $542,000. Since her husband passed away within the last two years, she is eligible for the $500,000 exclusion.
This leaves $542,000 - $500,000 = $42,000 as taxable gain. Wilma will have to pay income tax on $42,000. However, the exact amount of tax she will owe depends on the tax rates and other aspects of her financial situation.
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A free enterprise system provides individuals the opportunity to make their own economic decisions, without restrictions from the government. It allows the supply and demand of consumers to determine the success or failure of an economic endeavor. As a result, some business owners have become successful, while others have not.
In an essay, you will choose an entrepreneur and argue whether the free enterprise system was necessary for that individual to make an impact on the business world.
The entrepreneur that is chosen for this argument is Steve Jobs. Steve Jobs was one of the co-founders of Apple, which is now a trillion-dollar company.
The free enterprise system was necessary for Steve Jobs to make an impact on the business world. Steve Jobs did not come from a wealthy background, but he had a passion for technology. The free enterprise system allowed him to start a business without any restrictions from the government.
He was able to create innovative products, such as the iPhone and iPad, and sell them to consumers. The supply and demand of consumers determined the success or failure of his business endeavors. Steve Jobs was able to create a successful company and become a billionaire because of the free enterprise system.
Without the free enterprise system, Steve Jobs may not have been able to start a successful business and make an impact on the business world.
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For each of the following, indicate if a discrete or a continuous random variable provides the best definition:
a. The number of cars that arrive each day for repair in a two-person repair shop
b. The number of cars produced annually by General Motors
c. Total daily e-commerce sales in dollars
d. The number of passengers that are bumped from a specific airline flight 3 days before Christmas
a.) Discrete variable renders the proper definition in this case because there is no way we can measure the no. Of cars that arrive for washing each day. It can only be counted.
What is Discrete Variable?A discrete variable is one whose value is acquired by counting, and a continuous variable is one which is acquired by measuring.
b.) Discrete variable will render the proper definition of cars produced annually because we cannot measure the no. Of cars produced annually rather, we can count it.
c.) Discrete random variables will provide an improved definition in this case because total daily e-commerce sales can only be counted.
d.) Discrete variable is the one which will provide a better definition because of the no. Passengers can only be counted, not measured.
Therefore, Discrete and continuous random variables are indicated above.
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Double declining balance
The double-declining balance method is an effective way to depreciate assets in the early years of their useful life and reduce the balance of the asset more quickly than the straight-line method. This helps companies to account for the asset's cost more accurately over time and to recognize its diminishing value as it ages.
Double-declining balance method is a method of depreciation that is an accelerated method.
The depreciation rate is twice as much as the straight-line method's depreciation rate.
This method begins with an asset's value at the beginning of its use and then decreases at a constant rate throughout its useful life until it reaches the asset's salvage value.
This depreciation method is most commonly used for assets that depreciate quickly at the beginning of their useful life and then slowly depreciate over time until they are scrapped or sold.
Assets such as computers, vehicles, and machinery are common examples of assets that use this method of depreciation.
Double-declining balance method can be calculated using the following formula:Annual depreciation = (2 / useful life in years) * book value at the beginning of the yearOrDepreciation rate = 2 / useful life in years.
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Five Card Draw manufactures and sells 23,000 units of Diamonds, which retails for $180, and 26,000 units of Clubs, which retails for $210. The direct materials cost is $25 per unit of Diamonds and $30 per unit of Clubs. The labor rate is $25 per hour, and Five Card Draw estimated 222,000 direct labor hours. It takes 4 direct labor hours to manufacture Diamonds and 5 hours for Clubs. The total estimated overhead is $666,000. Five Card Draw uses the traditional allocation method based on direct labor hours.
A. What is the gross profit per unit for Diamonds and Clubs?
B. What is the total gross profit for the year?
A. The gross profit per unit for Five Card Draw's Diamonds and Clubs is as follows:
Diamonds Clubs
Gross profit per unit $43 $40
B. The total gross profit for the year is $2,029,000.
How is the gross profit determined?The gross profit is the result of the difference between the total sales revenue and the total cost of goods sold for the period.
In a manufacturing company, the cost of goods sold consists of direct costs (materials and labor) and some overhead costs.
Diamonds Clubs
Production and Sales Units = 23,000 units 26,000 units
Retail price per unit = $180 $210
Direct materials cost per unit $25 $30
Labor rate per hour $25 $25
Direct labor hours 4 5
Direct labor costs per unit $100 ($25 x 4) $125 ($25 x 5)
Total estimated overhead = $666,000
Total estimated direct labor hours = 222,000
Overhead rate per DLH = $3 ($666,000/222,000)
Overhead cost per unit $12 (4 x $3) $15 (5 x $3)
Total unit costs:
Diamonds Clubs
Direct materials cost per unit $25 $30
Direct labor costs per unit $100 $125
Overhead cost per unit $12 $15
Total unit costs $137 $170
Retail price per unit $180 $210
Gross profit per unit $43 $40 ($210 - $170)
Total gross profit $989,000 $1,040,000 ($40 x 26,000)
Total gross profit for Five Card Draw for the year = $2,029,000 ($43 x 23,000 + $40 x 26,000)
Thus, Five Card Draw will record a total gross profit of $2,029,000 for the year.
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price an investor pays to purchase outstanding bond
The price an investor pays to purchase an outstanding bond is typically referred to as the "purchase price" or "transaction price." This price is determined by various factors, including the bond's face value, coupon rate, current market interest rates, and the remaining time to maturity.
When a bond is traded on the secondary market, its price may differ from its face value. If the bond's coupon rate is higher than the prevailing market interest rate, the bond may be sold at a premium, meaning the purchase price will be higher than the face value. Conversely, if the coupon rate is lower than the market interest rate, the bond may be sold at a discount, and the purchase price will be lower than the face value.
The purchase price of a bond is influenced by supply and demand dynamics, credit rating changes, economic conditions, and investor sentiment. It is important for investors to consider these factors when determining the price they are willing to pay for an outstanding bond in order to achieve their desired yield or return on investment.
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A USP should NOT be unique and memorable.
False
True
I don't know
It depends
Answer:
false
Explanation:
Question 5 of 10
What is one disadvantage of a trade school education over a four-year
college?
A. The cost will be higher.
B. You will have to study longer.
C. You will be less prepared to work.
OD. Your courses will not be as diverse.
Answer: your answer is B
Explanation:
Respond to the following in a minimum of 175 words: Most schools and businesses require some standard style of documentation for written reports. Discuss why that might be. What disadvantages, if any, might there be to insisting that all reports conform to a certain style?
I believe that most schools and businesses require the knowledge of standard styles of documentations, because it plays as an extremely important role in communication. In grade school we all learn the basics of writing in English courses. There’s a difference in styles and expectations when it comes to college level writing. The type of writing I’ve been required to complete APA style most college courses go by this template. With following proper guidelines with APA there’s certain grammatical punctuation needed, citations, references, which type of paper is being written ( ex:argumentative) . There’s usually a minimum word count to be met. Being able to write and produce good documents also show the intelligence of how well the information given to you is reciprocated. How well you can share information off to others. Some disadvantages would be the time it takes to make sure the guideline are being met. Creating rough drafts, doing research, and etc. Some people may only be familiar with certain types of writing styles and not open to creating things a different way. Being that’s what they’re used to.
Bottom of Form
Classmate 2
Top of Form
The reason most schools and businesses require some form of standard formate is to be precise and clear for the reader. When filing government documents, they are formatted in certain ways for filing and researching all the important information. When using these formats, the writer needs to be aware of everything on the page. This includes font style, font size, margins, letter head and references. The reference page was designed to make it as easy as possible for the person reviewing the paper to find all the sources without issues and for fact checking. With these different formats it provides the students practice for entering into the career world. It also builds professionalism and credibility when they are able to properly site the references used.
The disadvantage of using these different formats is that they follow very strict guild lines. If you were to turn in a paper for college missing one or several thing; you can be docked points off your grade. There are also many things that can be missed and are very specific that if the right person was looking at it could find them in a matter of minutes. It's also discouraging for inexperienced student who haven't used it before to use because they feel like they're going to make a mistake throughout the entire paper. I definitely feel this way when writing any important documents for school or work.
The reason most schools and businesses require the same style for written reports is for, precision, accuracy, and making the reports clear for the person reading.
What is a writing style?This is the style that has been adopted by a given organization or faculty in how to present their scholarly works and other forms of literature.
The different types are
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5. Based on the outcome, where did Paterno's intentions go wrong? In what ways could followers have changed the moral climate at Penn State?
Note that based on the outcome, Paterno's intentions went wrong.
How is this so?Rather than following up on the allegations against Sandusky, Paterno made it a priority to safeguard the reputation of the football program and university – which fettered his intentions.
Unfortunately, this created an environment that encouraged silence and cover-ups, allowing Sandusky to continue with his abuse for years despite clear indicators. The followers at Penn State could have galvanized a cultural shift by speaking out about the rampant abuse and demanding prompt action from university authorities.
In short, they had every opportunity to prioritize victim safety over retaining their loyalty towards the esteemed institution. Through the practice of holding the powerful accountable and advocating for transparency and action, it would have been possible to attenuate further harm and encourage a culture that emphasizes accountability and responsibility.
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need help in these question
Answer:
one sec i can help
Explanation:
how many cowboy hats can you fit on your head
Answer:
7
Explanation:
You tell Julia, "There's always improvement to be made as we grow, beginning with me." She looks at you and smiles. You're not certain if her smile is genuine, but you know there are things you can do to improve your leadership skills as well as things you can do to equip the organization to run well as you develop those skills. What might you do to help your organization?
To help improve the organization, the leader can focus on developing their own leadership skills while also equipping the organization to run effectively.
This can be achieved by seeking feedback from employees, providing training and professional development opportunities, delegating responsibilities to trusted team members, and fostering a positive and collaborative work environment.
By seeking feedback from employees, the leader can identify areas for improvement and make necessary adjustments to their leadership style. Providing training and development opportunities can help employees grow in their roles and contribute to the success of the organization. Delegating responsibilities to trusted team members not only lightens the leader's workload, but also empowers employees and allows them to develop their own leadership skills. Finally, fostering a positive and collaborative work environment can boost morale and productivity, leading to greater success for the organization as a whole.
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PLEASE HURRY
If you are paid according to a rate of $15 per hour, what is your type of payment?
a. Commission
b Salary
C Wage
d. Pension
Please select the best answer from the choices provided
A
оооо
С
Answer:
C Wage
Explanation:
Wage is compensation paid per hour worked. The term wage is most applicable to piecemeal jobs. Wage is usually paid per hour, per day, per week, or a piece of work completed.
Wage differs from salary in that salary is a fixed amount of compensation paid after the lapse of an agreed time, mostly monthly. Wage is not a fixed amount but depends on the hours worked or the amount of work done.
Answer:
C
Explanation:
i took test 80% -w- lol
The income statement of Trixle Motors Inc. is given to you. What is the net profit for the given period? A.
$1,600,000
B.
$ 43,500
C.
$1,665,600
D.
$1,556,500
Answer:
D.$1,556,500
Explanation:
Net profit is calculated by subtracting total expenses from total revenue.
In the case, total revenue is equal to sales revenue + interest revenue
=1,580,000 + 20,000
=1,600,000
Total expenses will be salaries + Rent + advertisement + repair
=26,000 + 6,000 + 7,000 +4500
=43,500
net profit = 1,600,000 - 43,500
net profit =1,556,500
Answer:
D.
$1,556,500
Explanation:
Which of the following is NOT a factor cited in the text that affects the strategy for selecting a target market?
A target market is a group of customers with shared demographics identified as the most likely buyers of a company's product or service.
What is a Target Market?A target market, also known as a serviceable attainable market, is a segment of a company's functional available market that the company directs its marketing resources and efforts toward. A target market is a segment of a product or service's overall market.
A target market is a collection of potential buyers too who you identify to market your goods or services. Each group could be split up into more compact units. Typically, segments are classified according to age, region, income, and lifestyle.
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What is the main advantage of being a productive worker?
OA. You can create a lot of products or services quickly.
OB. You are able to work in a field with a high market value.
O C. You are given access to the benefits of worker organizations.
OD. You do not have to follow restrictive regulations.
SUBM
Answer:
There are many advantages of being a productive worker. The first advantage is that you can earn more money. You will be able to earn more money if you are a productive worker because you will have the opportunity to work with companies that pay higher salaries. The second advantage is that it gives you the opportunity to have a better lifestyle, for example, having an apartment or house and buying things for yourself and your family. The third advantage is that it gives you the opportunity to do things on your own time without being punished by your boss or company for not showing up at work on time.
Explanation:
TRUE OR FALSE - ACCOUNTING (70 POINTS) - IF FALSE EXPLAIN WHY
1. If the adjusting entry to recognize expired auto insurance at the end of the period is inadvertently omitted, insurance expense will be understated and net income overstated.
2. The book value of an asset is the difference between the cost of an asset and the accumulated depreciation.
3. Accumulated depreciation is reported on the income statement.
4. A company depreciates its equipment $600 a year. The adjusting entry on December 31 is a: debit to Depreciation Expense, $600, and a credit to Accumulated Depreciation, $600.
5. Cash and other assets that are reasonably expected to be realized in cash, sold, or consumed less than one year after the balance sheet date are called current assets.
6. Manufacturing equipment is an example of a current asset.
7. Rent Expense is a permanent account and it appears on the balance sheet.
8. Assets, liabilities, and stockholders' equity accounts are permanent accounts and do not get closed at the end of the period.
Discuss the functions of government necessary for a country
The functions of government are crucial for the proper functioning and development of a country. These functions can vary depending on the type of government system in place, but there are several key functions that are commonly considered necessary for a country's stability and progress.
1. Legislation and Governance: One of the primary functions of government is to create and enforce laws that maintain order, protect individual rights, and promote the welfare of the citizens. Governments establish institutions and frameworks for governance, ensuring the rule of law and providing a system of justice.
2. Defense and Security: Governments are responsible for safeguarding the country and its citizens from external threats. This involves maintaining armed forces, intelligence agencies, and diplomatic relations to protect national security interests.
3. Economic Management: Governments play a crucial role in managing and regulating the economy. They establish fiscal and monetary policies, oversee financial institutions, promote trade, and create an environment that supports economic growth and stability. Government intervention is often necessary to address market failures, promote fair competition, and protect consumers.
4. Social Welfare: Governments have a responsibility to ensure the well-being and social welfare of their citizens. This includes providing basic services such as healthcare, education, social security, and infrastructure development. Governments also implement social policies to address poverty, inequality, and promote equal opportunities.
5. Public Services: Governments are responsible for delivering essential public services, such as transportation, utilities, public safety, and environmental protection. These services are necessary for the functioning of society and improving the quality of life for citizens.
6. Diplomacy and International Relations: Governments engage in diplomatic activities and maintain relationships with other nations. They negotiate treaties, participate in international organizations, and represent the country's interests abroad. Governments also address global challenges, such as climate change and human rights, through international cooperation.
7. Public Communication and Information: Governments have a role in providing transparent and accurate information to the public. They engage in public communication, disseminate information, and promote citizen engagement and participation in the decision-making process.
These functions of government are essential for maintaining social order, promoting economic growth, protecting citizens' rights, and ensuring the overall well-being of a country. Effective governance requires a balance between these functions, adaptability to changing circumstances, and responsiveness to the needs and aspirations of the citizens.
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A $100 face value, 30 year 0-coupon bond has a yield to maturity of 5.7%. At what price does it trade?
Kindly solve using a financial calculator. Thanks!
The bond would trade at a price of approximately $308.03.
How did we get the value?Calculating the price of the bond,use the present value formula:
PV = FV / (1 + r)^n
Where:
PV = Present value or price of the bond
FV = Face value of the bond ($100)
r = Yield to maturity (5.7% or 0.057)
n = Number of years until maturity (30)
Using a financial calculator, input these values and solve for PV:
N = 30
I/Y = 5.7
FV = 100
PMT = 0
CPT PV = - $308.03
Therefore, the bond would trade at a price of approximately $308.03.
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A fixed asset with a cost of $31,588 and accumulated depreciation of $28,429.20 is sold for $5369.96. What is the amount of gain or loss on disposal of the fixed asset
Answer:
$2,238.16
Explanation:
In the disposal of assets, gain or loss will be a comparison between the book value and the selling price.
Book value is the asset costs minus accumulated depreciation.
in this case, the book value will be
= Asset cost - Depreciation
= $31,588- $28,429.20
=$3,158.8 is the book value.
Gain or loss = selling price- book value
=$5,369.96 - $3,158.8
=$2,238.16
A gain of$2,238.16 will be gain from that sale.
factors that drive supply and demand for bakery business
Answer: Factors that affect supply-
Weather
Yields
Disease
Technology
Cost of production
Factors that affect demand-
population size
Consumer taste
Income
Price
Government policies
Dividends Per Share Windborn Company has 25,000 shares of cumulative preferred 3% stock, $50 par and 50,000 shares of $15 par common stock. The following amounts were distributed as dividends:
Y1 $75,000
Y2 15,000
Y3 112,500
Determine the dividends per share for preferred and common stock for each year. The stock outstanding when a corporation has issued only one class of stock.common stock for each year.
Preferred Stock Common Stock
(dividend per share) (dividend per share)
Year 1 $ $
Year 2 $ $
Year 3 $ $
Answer:
Preferred Stock Common Stock
(dividend per share) (dividend per share)
Year 1 $1.50 $0.75
Year 2 $0.60 $0.00
Year 3 $2.40 $1.05
Explanation:
For Year 1:
Total dividend distributed = $75,000
Preferred shareholders' dividend = $50 * 25,000 * 3% = $37,500
Preferred shareholders' dividend per share = $37,500 / 25,000 = $1.50
Common stockholders' dividend = Total dividend distributed - Preferred shareholders' dividend = $75,000 - $37,500 = $37,500
Common stockholders' dividend per share = $37,500 / 50,000 = $0.75
For Year 2:
Total dividend distributed = $15,000
Dividend payable to preferred shareholders = $50 * 25,000 * 3% = $37,500
Dividend paid to preferred shareholders = $15,000
Preferred shareholders' dividend per share = $15,000 / 25,000 = $0.60
Preferred shareholders' dividend carried forward = Dividend payable to preferred shareholders - Total dividend distributed = $37,500 - $15,000 = $22,500
Common stockholders' dividend = $0
Common stockholders' dividend per share = $0
For Year 3:
Total dividend distributed = $112,500
Total dividend paid to preferred shareholders = $37,500 + Preferred shareholders' dividend carried down from Year 2 = $37,500 + $22,500 = $60,000
Preferred shareholders' dividend per share = $60,000 / 25,000 = $2.40
Common stockholders' dividend = Total dividend distributed - Total dividend paid to preferred shareholders = $112,500 - $60,000 = $52,500
Common stockholders' dividend per share = $52,500 / 50,000 = $1.05