Answer:
a.a debit to Cash Dividends for $120,000.
Explanation:
The amount of dividend paid is dependent on two function; the number of shares and the amount declared for payment per share.
When it is paid, a credit is posted to cash account and the corresponding debit is posted to the dividend paid account.
As such, since the company has 80,000 shares and the declared dividend was $1.50,
Total dividend paid = $1.50 × 80000
= $120,000.
Hence cash dividend is debited with $120,000 on payment.
A pricing tool that focuses on the changes in total revenue and total cost from selling one more unit to find the most profitable price and quantity is called Marginal analysis.
Marginal analysis is an examination of the added benefits of an activity against the incremental costs resulting from the same activity. Businesses use marginal analysis as a decision-making tool to help them maximize their potential revenue. For example, if a company has a budget to make room for another employee and plans to hire another person to work in the factory, marginal analysis indicates that hiring that person provides a net marginal benefit.
To learn more about Marginal analysis, click here.
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Answer:
1. The company's profit margin is 13.4% percent.
profit margin = net income / net sales = $45,064 / $336,329 = 13.4%
2. The total asset turnover is 0.82 times.
asset turnover ratio = net sales / average assets = $336,329 / [($387,891 + $432,000)/2] = $336,329 / $409,945.50 = 0.82
3. The equity multiplier is 1.7 times.
equity multiplier = average total assets / average total equity = $409,945.50 / [($205,936 + $275,000)/2] = $409,945.50 / $240,468 = 1.70
4. Using the Du Pont Identity, the company's ROE is 18.68% percent.
ROE = profit margin x asset turnover x equity multiplier (or financial leverage) = 0.134 x 0.82 x 1.7 = 0.1868 = 18.68%
Answer:
A post audit is only necessary for a capital investement selected using a technique that does not consider the time value of money
Explanation:
A post audit defines the analysis of an outcome with respect to the capital budgeting investment. It is to be conducted at the closing of the period. Also it measures whether the project should be accepted or rejected via details assumption analysis but also it considered the times value of the money
Therefore the above statement should be considered
And, hence, the other options should be considered as wrong
