In order to prepare a sales budget, a ____ is required
A) production budget
B) sales forecast
C) static budget
D) flexible budget
B
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McQueen, Inc. grants 200,000 nonqualified stock options to Robert Chalmers, the CEO, on January 1, 2018. The par value of McQueen's common stock is $1. The exercise price on the options is $35 per share, and the options are exercisable in two years.The stock price on January 1, 2018 is $31 per share. This is a fixed option plan. Using the Black-Scholes option pricing model, the value of each option is estimated to be $15.50 at the date of grant. Stock prices are $45, $65, and $50 at December 31, 2018, 2019, and 2020, respectively. Robert exercises his options on April 14, 2021, when the stock price is $57 per share.Required:
Using current GAAP, how much expense will McQueen, Inc. recognize for the year ended December 31, 2019 related to the options?Prepare the journal entries needed on the date of exercise. What will be an ideal response?
A corporation has 20,000 shares of 17%, $50 par cumulative preferred stock outstanding and 25,000 shares of no-par common stock outstanding. Preferred dividends of $36,000 are in arrears. At the end of the current year, the corporation declares a dividend of $208,000. How is the dividend allocated between preferred and common stockholders?
A) The dividend is allocated $2000 to preferred stockholders and $206,000 to common stockholders. B) The dividend is allocated $206,000 to preferred stockholders and $2000 to common stockholders. C) The dividend is allocated $208,000 to preferred stockholders and no dividend is paid to common stockholders. D) The dividend is allocated $170,000 to preferred stockholders and $38,000 to common stockholders.
The asymmetric information explanation of capital structure suggests that firms will issue new debt only when the managers believe the firm's stock is overvalued; as a result, issuing new debt is considered a negative signal that will result in a
decline in share price. Indicate whether the statement is true or false
Computers, copiers, and desks are examples of what category of business product?
A) supplies B) installations C) accessory equipment D) process materials E) capital items