Concept explainers
Stock Dividends: It refers to the payment of dividends by a company to its existing shareholders, in the form of additional shares rather than cash. Stock dividends are paid, when there is an inadequate cash available in the company.
Cash dividends: The amount of cash provided by a corporation out of its distributable profits to its shareholders as a return for the amount invested by them is referred as cash dividends.
Stock Splits: It is a method of increasing the total number of outstanding shares thereby, reducing the market price of each share, however, keeping the corporation’s total market value constant.
To indicate: effect of each of the given transactions on total assets, total liabilities, and

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Chapter 11 Solutions
FIN. ACCT.-TOOLS FOR BUS.DEC.MAKING-CODE
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- Brenda Confections is preparing its cash budget and expects to have sales of $50,000 in April, $65,000 in May, and $75,000 in June. If 30% of sales are for cash, 50% are credit sales paid in the month after the sale, and 20% are credit sales paid 2 months after the sale, what are the expected cash receipts for June?arrow_forwardRK Co. sells snowboards. Each snowboard requires direct materials for $140, direct labor for $55, and variable overhead of $64. The company expects fixed overhead costs of $673,000 and fixed selling and administrative costs of $160,000 for the next year. It expects to produce and sell 11,900 snowboards in the next year. What will be the selling price per unit if RK uses a mark-up of 17% of the total cost?arrow_forwardSP Company made sales of $32,750 million in 2019. The cost of goods sold for the year totaled $12,500 million. At the end of 2018, Malt's inventory stood at $1,300 million, and SP ended 2018 with an inventory of $1,800 million. Compute Malt's gross profit percentage and rate of inventory turnover for 2019.arrow_forward
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