Roosevelt Inc., a consulting service, has a history of paying annual dividends of $1 per share. Management
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• All sales are on account, and accounts receivable are collected one month after the sale. Sales volume has been decreasing 5% each month.
• Operating expenses are paid in cash in the month incurred. Average monthly expenses are $10,000 (excluding the biweekly payroll).
• Biweekly payroll is $4,500, and it will be paid December 15 and December 31.
• Unearned revenue is expected to be earned in December. This amount was taken into consideration in the expected sales volume.
Accounts Receivable
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that... Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...
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Related Book For
Using Financial Accounting Information The Alternative to Debits and Credits
ISBN: 978-1111534912
8th edition
Authors: Gary A. Porter, Curtis L. Norton
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