Business, 12.03.2020 21:14 legendman27

The Western Pipe Company has the following capital section in its balance sheet. Its stock is currently selling for $5 per share.

Common stock (40,000 shares at $2 par) $80,000
Capital in excess of par 80,000
Retained earnings 180,000
Total equity $340,000

The firm intends to first declare a 15 percent stock dividend and then pay a 25-cent cash dividend (which also causes a reduction of retained earnings).

Required:
Show the capital section of the balance sheet after the first transaction and then after the second transaction.

Answers: 1

Show answers

Another question on Business

Business, 22.06.2019 07:30

Most states have licensing registration requirements for child care centers and family daycare homes. these usually include minimum standard for operation. which of the following would you most likely find required in a statement of state licensing standards for child care centers?

Answers: 2

Answer

Business, 22.06.2019 09:40

Newton industries is considering a project and has developed the following estimates: unit sales = 4,800, price per unit = $67, variable cost per unit = $42, annual fixed costs = $11,900. the depreciation is $14,700 a year and the tax rate is 34 percent. what effect would an increase of $1 in the selling price have on the operating cash flow?

Answers: 2

Answer

Business, 22.06.2019 11:10

Which of the following is an example of a production quota? a. the government sets an upper limit on the quantity that each dairy farmer can produce. b. the government sets a price floor in the market for dairy products. c. the government sets a lower limit on the quantity that each dairy farmer can produce. d. the government guarantees to buy a specified quantity of dairy products from farmers.

Answers: 2

Answer

Business, 22.06.2019 14:40

In the fall of 2008, aig, the largest insurance company in the world at the time, was at risk of defaulting due to the severity of the global financial crisis. as a result, the u.s. government stepped in to support aig with large capital injections and an ownership stake. how would this affect, if at all, the yield and risk premium on aig corporate debt?

Answers: 3

Answer

You know the right answer?

The Western Pipe Company has the following capital section in its balance sheet. Its stock is curren...

Questions