Exhibit 16-1The Zeller Corporation's stockholders' equity accounts have the following balances as of December 31, 2016:
Common stock, $10 par (30,000 shares issued and outstanding)$ 300,000
Additional paid-in capital2,000,000
Retained earnings 5,700,000
Total stockholders' equity$8,000,000
?
Refer to Exhibit 16-1. On January 2, 2017, the board of directors of Zeller declared a 5% stock dividend to be distributed on January 31, 2017. The market price per share of Zeller's common stock was $30 on January 2 and $32 on January 31. As a result of this stock dividend, the retained earnings account should be decreased by
A. zero; only a memorandum entry is required.
B. $15,000.
C. $45,000.
D. $48,000.
Answer: C
You might also like to view...
The injured party loses the right to sue if the lawsuit is brought after the ________ expires.
A. privity of contract B. notice of assignment C. future right D. statute of limitations
Briefly describe several of the inputs that marketers typically contribute to a company's business plan
What will be an ideal response?
Getting a commitment from the customer to purchase your product is also known as
A. wrapping it up. B. preparing for follow-up. C. closing the sale. D. asking for the bacon. E. handling reservations.
NovartisNovartis, a Swiss drug maker, is planning to purchase a majority stake in Zhejiang Tianyuan Bio-Pharmaceutical Company, a Chinese vaccine maker. Novartis has agreed to pay $125 million for the company that holds a 3% share of China's $1 billion vaccines market. The market for vaccines is growing 20% or more in developing nations of Asia, Africa, and Australasia. In the past, vaccine use has been limited to basic shots against diseases such as polio, tuberculosis, and measles, but as the economies of these countries grow, government and private healthcare spending focuses on preventing diseases such as hepatitis B, cholera and rotavirus, tetanus, and others. Some critics are against the acquisition, claiming that prices will increase. Novartis claims it is not interested
in raising prices but rather to expand Tianyuan's product offerings.Refer to Novartis. Novartis assessed the opportunity presented by the growing potential markets in developing countries and determined it was consistent with its internal quality production processes and extensive R&D capabilities. This assessment process in which Novartis learned this about the environment is called a(n): A. market audit B. situation analysis C. primary analysis D. profit and loss assessment E. strategic window search