Question
The ABC Company, whose stock has a market value of 25, has the following common equity accounts on its balance sheet: Common stock (5 par,
The ABC Company, whose stock has a market value of 25, has the following common equity accounts on its balance sheet: Common stock (5 par, 500,000 shares) 2,500,000; Premium on common stock 15,000,000; Retained earnings (including appropriation of 5,000,000 for equipment) 50,000,000; Total common stockholders' equity 67,500,000. If the rm declares a 10%-stock dividend, what will be the balance of the unappropriated retained earnings after the dividend is paid?*
A. 48,750,000
B. 43,750,000
C. 45,000,000
D. 50,000,000
The company takes about 10 days from placing an order to receiving the goods ordered. If the company has a normal usage of 12 units per day and a maximum usage of 14 units per day during lead time, at what level should the company place an order?
A. 50 units
B. 140 units
C. 30 units
D. 120 units
ABC Co. sells 200 units of disc per week. The purchase order lead time is 3 Weeks and the economic order quantity is 450 units. What is the re-order point?
A. 2,250 units
B. 425 units
C. 600 units
D. 1,750 units
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