How does competition benefit consumers (econ)​

Answer:

The statements required have been prepared below

Explanation:

The income statement extract:

Revenue                  $86,800

Cash expenses      ($69,900)

Net income              $16,900

Statement of changes in equity extract:

                      Retained Earnings       Capital           Total

                                   $                           $                   $

Bal b/f                          nil                         nil               nil

paid in capital                                         159,000      159,000

net income                16,900                         -               16,900

Dividends                  (10,500)                      -                (10,500)

Balance c/f                  6,400                     159,000      165,400    

Balance sheet extract  

Assets

Cash (159000+86800-69900-10500)                           165,400

Total assets                                                                      165400

Shareholders' equity

Share capital                                                                     159,000

Retained earnings                                                                6,400

Total shareholders' fund                                                   165,400

Cash flow extract:

operating cash  flow

Net income                                                                         16,900

financing activities

share capital                                                                       159,000  

dividends                                                                            (10,500)

Increase in cash and cash equivalent in the year             165,400  

Answer:

Option D. A niche player competes in selected parts of the market.

Explanation:

The first thing is that the Andrew's specializes in a niche market and due to this reason his product doesn't faces any competitor. This niche market strategy is the main reason why the market share of Andrew doesn't gets affected. Furthermore, the product of Andrew are not much popular among the people because the target customers are lower in quantity.

Answer:

A. credit to Paid-in Capital in Excess of Par for $120,000.

E. debit to Stock Dividends for $360,000.

Explanation:

Irrespective of whether the company declared the stock dividend before or after the increase of market value of the stock, the stock dividend will be based on the market value of the common stock. The original journal entry to record the transaction is =

Debit   Stock Dividends      $360,000

Credit  Common Stock Dividends Distributable $240,000  

Credit  Paid in Capital in Excess of Par $120,000

Calculation = 160,000 shares of $10 par value = $1,600,000 × stock dividend = $1,600,000 × 15% = $240,000

Stock dividend = 160,000 shares of $15 market value = $2,400,000 × stock dividend = $2,400,000 × 15% = $360,000

Additional Paid in capital = $360,000 - 240,000 = $120,000

Therefore, option A and E are the answer.

Answer:

Follows are the solution to the given question:

Explanation:

Please find the complete question in the attachment file.

Market capitalization at 30 June:  

Dividends payable on 10 July:

Actions omitted by 31 December: 

X Stock Dividends 1.2

Dividend payments payable on 31  December:

Total value is given: