What are the three factors that explain why stock values fluctuate?
What will be an ideal response?
Answer: As interest rates rise, the value of the stock decreases. As the stock's risk increases, so does the investor's required rate of return. As earnings grow, so does the company's capacity to pay dividends. This earnings growth is viewed as a cause of dividend increases and stock prices.
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For each of the following accounts, state type of account and the normal account balance. Assume a periodic inventory system.
A bill of materials is a document that lists the type and quantity of each type of direct material needed to complete a unit of product.
Answer the following statement true (T) or false (F)
Financial statements of Rukavina Corporation follow:Comparative Balance Sheet Ending BalanceBeginning BalanceAssets: Cash and cash equivalents$36 $38 Accounts receivable 39 44 Inventory 34 35 Property, plant, and equipment 386 360 Less accumulated depreciation 202 191 Total assets$ 293 $ 286 Liabilities and stockholders' equity: Accounts payable$71 $61 Bonds payable 176 220 Common stock 81 80 Retained earnings ( 35) ( 75)Total liabilities and stockholders' equity$ 293 $ 286 Income StatementSales$ 518Cost of goods sold 336Gross margin182Selling and administrative expense 113Net operating income69Income taxes 21Net income$ 48Cash dividends were $8. The company did not dispose of any property, plant, and
equipment. It did not issue any bonds payable or repurchase any of its own common stock. The following questions pertain to the company's statement of cash flows.The net cash provided by (used in) financing activities for the year was: A. $(51) B. $(8) C. $1 D. $(44)
________ are the increases in equity from a company's sales of products and services to customers.
What will be an ideal response?