Question 23 Not yet answered Paints out of 3.00 Flag question The Shippecasse Company had a Current Ratio of 12. The Company declared a $10,000 cash dividend to preferred shareholders and immediately paid 70% of it. What is the combined effect of these two transactions on the current ratio and total stockholders' equity, respectively? Select one: O a. Increase, Increase O b. Decrease, Decrease O Increase, Decrease Od. No Effect, increase Oe Decrease, No Effect

Question 23 Not yet answered Paints out of 3.00 Flag question The Shippecasse Company had a Current Ratio of 12. The Company declared a $10,000 cash dividend to preferred shareholders and immediately paid 70% of it. What is the combined effect of these two transactions on the current ratio and total stockholders' equity, respectively? Select one: O a. Increase, Increase O b. Decrease, Decrease O Increase, Decrease Od. No Effect, increase Oe Decrease, No Effect

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Qd 29.
Do not convert the answer in 1%
Problem 5 The owners' equity accounts for Alexander International are shown here: $ 40,000 335,000 Common stock ($0.50 par value) Capital surplus Retained earnings Total owners' equity 738,120 $1,113,120 a If Alexander stock currently sells for $25 per share and a 10 percent stock dividend is declared, how many new shares will be distributed? Show how the equity accounts would change.
23 Skipped A company received dividends of $0.50 per share on 1,000 shares of common stock it holds. It is presumed that this equity investment has insignificant influence. The journal entry to record this dividend receipt would consist of a debit to Cash for $500 and credit to Dividend Revenue for $500. True or False True False
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Quiz Q1
P-2 Assume you bought 100 shares of Data Point for $25 per share, and it is currently selling for $40 per share. Assume the stock eventually declines to $31. Ignore brokerage commissions and margin interest costs. Calculate your percentage rate of return at the $31 price assuming that you placed a sell stop order at $40 per share and the order executed at that price. Calculate your percentage rate of return at the $31 price assuming you did not place the stop loss order. Calculate your percentage rate of return on your equity investment assuming you bought 100 shares of this stock on 50% margin when it was selling for $25, and you sold the stock for $40 per share.
Solvency Section on Bottom : Selections are "Higher" or "Lower"
Additional Problem 3-5 Suppose that you just short sold 100 shares of Quiet Minds stock for $86.00 per share. Required: a. If the initial margin requirement is 60%, how much equity must you invest? (Round your answer to the nearest dollar) Equity b. Construct the balance sheet that corresponds to the transaction described in requirement a Stock T-bilis Total assets Assets Liabilities and Equity Short position (100 shares) Equity Total liabilities and equity
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O :4 " O O 25 The following information have been taken from the Muscat Company: $3,060Not payable Sales 139 Revenue Total 600 Accounts 500 operating Receivable expenses 1,800 Preferred 18 stock dividends Cost of goods sold Tax rate 40% Interest 126 expense Number of 1,000 shares of Accounts 240 payable common issues What is the earnings per share? Select one: $0.30 $0.53 II
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