Showing posts with label common stock dividend. Show all posts
Showing posts with label common stock dividend. Show all posts

Saturday, July 3, 2021

Based on the information contained in Table 3, what was the total amount of Snark Enterprise's common stock dividend for 2012

                                                       Table 3

                                      Snark Enterprises, Inc.
                                              Balance Sheets
                                                                    2011                           2012
Cash                                                         $1,000                            $?
Accounts receivable                               8,000                      9,000
Inventories                                                4,000                      7,000
Land                                                         10,000                   10,000
Other fixed assets                                   5,000                      5,500
Accumulated depreciation                 (1,600)                   (2,000)
Total assets                                          $26,400                            $?
Accounts payable                                 $4,200                  $ 7,000
Bonds                                                         4,000                      4,000
Common stock                                      15,000                   16,000
Retained earnings                                  3,200                      3,800
Total debt and equity                        $26,400                            $?

                                                          Snark Enterprises, Inc.
                                                              Income Statement
                                                Sales                                       $44,900
                                                Cost of goods sold               (22,000)
                                                Gross profit                          $12,900
                                                Operating expenses            (10,000)
                                                Depreciation                               (400)
                                                EBIT                                          $2,500
                                                Interest expense                         (500)
                                                EBT                                           $2,000
                                                Taxes                                         (1,000)
                                                Net Income                             $1,000

Based on the information contained in Table 3, what was the total amount of Snark Enterprise's common stock dividend for 2012?
A) $0
B) $400
C) $600
D) Cannot be determined with available information


Based on the information contained in Table 3, what is Snark Enterprise's gross profit margin in 2012.
A) 5.6%
B) 4.5%
C) 29.7%
D) 2.2%

Which of the following best represents operating income?
A) Income after financing activities
B) Earnings before interest and taxes
C) Income from capital gains
D) Income from discontinued operations

Which of the following best represents the stream of income that is available to stockholders?
A) Net profit after tax
B) Earnings before interest, taxes and dividends
C) Gross profit
D) Operating profit

Which of the following is NOT included in operating income?
A) Cost of goods sold
B) Sales
C) Taxes
D) Operating expenses

Based on the information contained in Table 2, what was the total amount of Bird Industries' common stock dividend for 2012


                                                      Table 2
                                         Bird Industries, Inc.
                                              Balance Sheets
                                                                    2011                          2012
Cash                                                         $1,000                            $?
Accounts receivable                               5,000                      6,000
Inventories                                                6,500                      6,000
Land                                                         10,000                   12,000
Other fixed assets                                   8,000                      9,000
Accumulated depreciation                 (1,000)                   (1,600)
Total assets                                          $29,500                            $?
Accounts payable                                 $3,200                  $ 6,800
Bonds                                                         4,000                      4,000
Common stock                                      17,000                   16,000
Retained earnings                                  5,300                      5,000
Total debt and equity                        $29,500                            $?

                                                             Bird Industries, Inc.
                                                               Income Statement
                                                Sales                                       $84,000
                                                Cost of goods sold                66,400
                                                Gross profit                          $17,600
                                                Operating expenses           (13,000)
                                                Depreciation                              (600)
                                                EBIT                                          $4,000
                                                Interest expense                        (500)
                                                EBT                                           $3,500
                                                Taxes                                         (1,500)
                                                Net Income                             $2,000

Based on the information contained in Table 2, what was the total amount of Bird Industries' common stock dividend for 2012?
A) $800
B) $2,300
C) $2,000
D) Cannot be determined with available information



Based on the information contained in Table 2, what was Bird Industries' operating profit margin for 22012?
A) 21%
B) 4.8%
C) 4.2%
D) 2.4%


Friday, March 1, 2019

The issuer of a 5% common stock dividend to common stockholders preferably should transfer from retained earnings to contributed capital an amount equal to the

The issuer of a 5% common stock dividend to common stockholders preferably should transfer from retained earnings to contributed capital an amount equal to the



a. market value of the shares issued.
b. book value of the shares issued.
c. minimum legal requirements.
d. par or stated value of the shares issued.


Answer: market value of the shares issued


At the date of declaration of a small common stock dividend, the entry should not include



a. a credit to Common Stock Dividend Payable.
b. a credit to Paid-in Capital in Excess of Par.
c. a debit to Retained Earnings.
d. All of these are acceptable.


Answer: a credit to Common Stock Dividend Payable


The balance in Common Stock Dividend Distributable should be reported as a(n)



a. deduction from common stock issued.
b. addition to capital stock.
c. current liability.
d. contra current asset.


Answer: addition to capital stock.

Bull Gator Industries is considering a new assembly line costing $6,000,000. The assembly line will be fully depreciated

Bull Gator Industries is considering a new assembly line costing $6,000,000. The assembly line will be fully depreciated by the simplified s...