3.

Texas Inc. has 4,000 shares of 7%, $125 par value cumulative preferred stock and 95,000 shares of $1 par value common stock outstanding at December 31. What is the annual dividend on the preferred stock?

a.$6,650 in total

b.$35,000 in total

c.$0.01 per share

d.$70.00 per share

2.

Finch Company began its operations on March 31 of the current year. Finch has the following projected costs:

	April	May	June
Manufacturing costs (1)	$158,900	$198,500	$217,200
Insurance expense (2)	950	950	950
Depreciation expense	2,150	2,150	2,150
Property tax expense (3)	580	580	580

(1) Of the manufacturing costs, three-fourths are paid for in the month they are incurred and one-fourth is paid for in the following month. (2) Insurance expense is $950 a month; however, the insurance is paid four times yearly, in the first month of the quarter (i.e., January, April, July, and October). (3) Property tax is paid once a year in November. The cash payments expected for Finch Company in the month of April are

a.$119,175

b.$122,025

c.$140,463

d.$158,900

1.

Use the information below for Nuthatch Corporation to answer the question that follow.

Nuthatch Corporation began its operations on September 1 of the current year. Budgeted sales for the first three months of businessSeptember, October, and Novemberare $247,000, $303,000, and $408,000, respectively. The company expects to sell 30% of its merchandise for cash. Of sales on account, 80% are expected to be collected in the month of the sale and 20% in the month following the sale.

The cash collections expected in September from accounts receivable are estimated to be

a.$138,320

b.$247,000

c.$172,900

d.$296,400