Answer:
d.
Explanation:
From the given information;
the quarter average sale = expected total sales ÷ number of quarter
= 14800 ÷ 4
= 3700
The forecast for the first quarter = average quarter sale × seasonal factor
= 3700 × 0.70
= 2590
Thus, the expected sales is more than 2500 but lesser than 3000
The project manager often combines information from all of the lessons-learned reports into a project summary report.
a. True
b. False
Answer: True
Explanation:
The lesson learned reports is referred to as the reflective statement where the important information which were learned while working on the project is documented.
The information from all of the lessons-learned reports is combined by the project manager into a project summary report. Some of the items which are discussed in the lessons-learned reports are whether the project was successful or not etc.
bartleby Clayborn Corporation's net cash provided by operating activities was $118,800; its net income was $106,100; its income taxes were $46,900; its capital expenditures were $96,300; and its cash dividends were $30,200. Required: Determine the company's free cash flow. (Negative amounts should be indicated by a minus sign.)
Answer: -$7,700
Explanation:
The Free Cash Flow is the amount of after tax income that a company has that can go to both its shareholders and debt holders.
When using cash from operating activities, taxes have already been accounted for so it is calculated as:
= Net cash provided by operating activities - Capital expenditure - Cash Dividends
= 118,800 - 96,300 - 30,200
= -$7,700
Come and Go Bank offers your firm a discount interest loan with an interest rate of 9 percent for up to $21 million, and in addition requires you to maintain a 2 percent compensating balance against the face amount borrowed.
What is the effective annual interest rate on this lending arrangement? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
Effective annual rate= %
Answer: 10.11%
Explanation:
The effective annual interest rate on this lending arrangement will be calculated thus:
Interest Paid will be:
= 9% × $21 million
= 0.09 × $21 million
= $1.89 million
Amount Received will then be:
= (21million - 1.89million) - (21million)(0.02)
= $19.11 million - $0.42 million
= $18.69 million
Then, the effective annual rate will be:
= 1.89/18.69
= 10.11%
Therefore, the effective annual interest rate on this lending arrangement is 10.11%.
Indicate how the following transactions affect the accounting equation.
a. The purchase of supplies on account.
b. The purchase of supplies for cash.
c. Payment of cash dividends to stockholders.
d. Revenues received in cash.
e. Sale made on account.
Answer:
Hopefully I understood the question correctly. Below is the affect on
assets-liabilities= owners equity
Explanation:
A. Increases assets, increases liabilty
b. Increases assets, decreases assets (a wash for assets)
c. Decreases owners equity, decreases assets
d. Increases owners equity, increases assets
e. Increases owners equity, increases assets
1: Một nhà máy khi đầu tư K (đơn vị: nghìn USD), sản phẩm cận biên theo vốn là
Q’(K) = 100K – 1/3
.
Biết rằng với mức đầu tư 8, sản lượng ở mức 4000 đơn vị. Cần đầu tư bao nhiêu để đạt mức sản lượng
8800 đơn vị?
A. 218; B. 212; C. 214; D. 216;
If a rise in incomes for both low-income and high-income workers is higher for the high- income workers, Group of answer choices then poverty will fall and inequality will rise. then poverty will rise and inequality will rise. then poverty will fall and inequality will fall. then poverty will rise and inequality will rise.
Answer:
Poverty will fall and inequality will rise.
Explanation:
Poverty will fall and inequality will rise is the correct answer because there is a rise in income for both category workers that is low income and higher income. Therefore, many low income workers may cross the poverty line due to an increase in pay so poverty will decrease. But, the income has increased for both the groups so higher income group worker will become richer so inequality will rise.
John works for a media advertising company that helps clients place ads in local online newspapers and magazines. He consults with systems analysts and programmers on projects that require the creation of systems to manage client records and trends. What is John's role in his organization?
Answer:
Database Administrator
Explanation:
From the question we are informed about John who works for a media advertising company that helps clients place ads in local online newspapers and magazines. He consults with systems analysts and programmers on projects that require the creation of systems to manage client records and trends. In this case, John's role in his organization is Database Administrator.
Database administrators can be regarded as a professionals that carry out functions that involve database development, security as well as storage and retrieval. They are professional that handle database management systems software, they are responsible for determining ways that can be used to organize and store data. Their role can carry such as capacity planning,performance monitoring as well as installation and configuration also troubleshooting and database design,
Your credibility is your capability of being believed because you are reliable and worthy of confidence.
yes, agreed and proven.
California wildfires destroy vineyards across the Napa Valley. This is during the season when wine festivals occur most often all over the country. Demonstrate the effect of these events on the equilibrium price and quantity of wine.
Answer:
As a result of the wildfire, supply would fall. there would be a leftward shift of the supply curve. the quantity supplied of wine would reduce and price would increase
as a result of the festival, there would be an increase in demand. this would lead to an outward shift of the demand curve. Thus, the quantity demanded would increase and price would increase
taking these two effects together, there would be an indeterminate change in equilibrium quantity and equilibrium price would increase
Explanation:
Economic growth and public policy
Suppose an American buys stock issued by an Argentinian corporation. The Argentinian firm uses the proceeds from the sale to build a new office complex. This is an example of foreign investment in Argentina. Which of the following policies are consistent with the goal of increasing productivity and growth in developing countries?
a. Provide tax breaks and patents for firms that pursue research and development in health and sciences.
b. Give families cash payments on the condition that their children show up for school and medical exams.
c. Increase taxes on income from savings.
d. Protect property rights and enforce contracts.
Answer:
a. Foreign Portfolio Investment
b. a. Provide tax breaks and patents for firms that pursue research and development in health and sciences.
d. Protect property rights and enforce contracts.
Explanation:
This is an example of Foreign Portfolio Investment (FPI). Foreign portfolio investment is when an entity from a foreign country invests in another country by buying the shares of a company in the local country. The American company bought shares in Argentina so the qualifies as FPI.
To increase productivity companies that are pursuing research should be given patents and tax breaks. The tax breaks will enable them have more money to reinvest into the research and the patent will provide incentive to them to continue the research knowing full well that they will be compensated by being the only ones to be able to use the technology invented for some time.
Also protecting property rights and enforcing contracts encourages investment in a country because people will be more trusting of making a return from business dealings. Higher investment leads to more productivity and growth.
Bell Corporation reports that at an activity level of 8,700 units, its total variable cost is $653,109, and its total fixed cost is $658,416.
Required: For the activity level of 8,800 units, assume this level is within the relevant range. Compute: the total variable cost, the total fixed cost, the total cost, the average variable cost per unit, the average fixed cost per unit, and the average total cost per unit.
There is not a word length requirement for this question; however, you must show your work.
Answer:
Bell Corporation
The total variable cost is = $660,616
The total fixed cost is = $658,416
The total cost is = $1,319,032
The average variable cost per unit is = $75.07
The average total cost per unit is = $149.89
Explanation:
a) Data and Calculations:
Current activity level = 8,700 units
Variable cost based on the current activity level = $653,109
Unit variable cost = $75.07 ($653,109/8,700)
Fixed cost = $658,416
At activity level of 8,800 units, since 8,800 units are within the relevant range:
The total variable cost = $660,616 (8,800 * $75.07)
The total fixed cost = $658,416 (same as at 8,700 units)
The total cost = $1,319,032 ($660,616 + $658,416)
The average variable cost per unit = $75.07 ($653,109/8,700)
The average total cost per unit = $149.89 ($1,319,032/8,800)
Crosley Company, a machinery dealer, leased a machine to Dexter Corporation on January 1, 2020. The lease is for an 8-year period and requires equal annual payments of $35,004 at the beginning of each year. The first payment is received on January 1, 2020. Crosley had purchased the machine during 2019 for $160,000. Collectibility of lease payments by Crosley is probable. Crosley set the annual rental to ensure a 6% rate of return. The machine has an economic life of 10 years with no residual value and reverts to Crosley at the termination of the lease.
Instructions:
a. Compute the amount of the lease receivable.
b. Prepare all necessary journal entries for Crosley for 2020.
c. Suppose the collectibility of the lease payments was not probable for Crosley. Prepare all necessary journal entries for the company in 2020.
d. Suppose at the end of the lease term, Crosley receives the asset and determines that it actually has a fair value of $1,000 instead of the anticipated residual value of $0. Record the entry to recognize the receipt of the asset for Crosley at the end of the lease term.
Answer:
A.$230,410
B. 01-Jan-17
Lease Receivable $230,410
Cost of Goods Sold $160,000
Sales Revenue $230,410
Inventory $160,000
01-Jan-17
Dr Cash $35,004
Cr Lease Receivable $35,004
31-Dec-17
Dr Lease Receivable $11,724
Cr Interest Revenue $11,724
C)01-Jan-17
Dr Cash $35,004
Cr Deposit Liability $35,004
D. Dr Inventory $1,000
Cr Gain on Lease $1,000
Explanation:
A. Computation for the amount of the lease receivable.
PV of lease= PV(rate, nper, pmt, [fv]), [type])
PV of lease= -PV (6%,8,35004, , 1)
PV of lease =$230,410
Therefore the amount of the lease receivable is $230,410
B. Preparation of all necessary journal entries for Crosley for 2020.
01-Jan-17
Lease Receivable $230,410
Cost of Goods Sold $160,000
Sales Revenue $230,410
Inventory $160,000
01-Jan-17
Dr Cash $35,004
Cr Lease Receivable $35,004
31-Dec-17
Dr Lease Receivable $11,724
Cr Interest Revenue $11,724
C. Preparation of all necessary journal entries for the company in 2020.
01-Jan-17
Dr Cash $35,004
Cr Deposit Liability $35,004
D. Preparation to Record the entry to recognize the receipt of the asset for Crosley at the end of the lease term
Dr Inventory $1,000
Cr Gain on Lease $1,000
People use money as a store of value when they: A. hold money to transfer purchasing power into the future. B. use money as a measure of economic transactions. C. use money to buy goods and services. D. hold money to gain power and esteem.
Answer:
A. hold money to transfer purchasing power into the future.
Explanation:
People use money as a store of value when they hold money to transfer purchasing power into the future.
If x follows a normal distribution with a mean of 10 and
standard deviation of 3; find out the following
A) Find the value of x = xº such that P(x 5 xº) = 5%
B) Find the value of x = xº such that P(x 2 x°) = 1%
Answer:
The answer is below
Explanation:
The z score is used to determine by how many standard deviations the raw score is above or below the mean. The z score is given by:
[tex]z=\frac{x-\mu}{\sigma} \\\\where\ x=raw\ score, \mu=mean,\ \sigma=standard\ deviation[/tex]
a) P(x ≥ x⁰) = P(z ≥ z⁰) = 1 - P(z < z⁰)
1 - P(z < z⁰) = 1%
P(z < z⁰) = 99%
z⁰ = 2.33
z° = (x° - μ)/σ
2.33 = (x° - 10)/3
x⁰ = 16.99
b) P(x ≥ x⁰) = P(z ≥ z⁰) = 1 - P(z < z⁰)
1 - P(z < z⁰) = 10%
P(z < z⁰) = 90%
z⁰ = 1.28
z° = (x° - μ)/σ
1.28 = (x° - 10)/3
x⁰ = 13.84
c) P(x ≥ x⁰) = P(z ≥ z⁰) = 1 - P(z < z⁰)
1 - P(z < z⁰) = 5%
P(z < z⁰) = 95%
z⁰ = 1.65
z° = (x° - μ)/σ
1.65 = (x° - 10)/3
x⁰ = 14.95
If you have a derivative position where you might be obligated to sell Japanese yen, you are a: Group of answer choices Call option buyer/holder. Put option writer/seller. Put option buyer/holder. Call option writer/seller.
Answer:
The answer is B
Explanation:
The answer is B. Put option writer/seller. Put option writer has a right but not the obligation to sell an asset at a specified price while put option buyer is the reverse
Option A is wrong. Call option buyer/holder has the right but not the obligation to buy an asset at a specified price while call option writer/seller is the reverse.
___ is the total sum of benefits a purchasing firm obtains for the price it pays for the marketing offering.
is the total sum of benifits a purchesing firm for the price for the marketing offering quality
Wildhorse, Inc. had net sales in 2020 of $1,502,400. At December 31, 2020, before adjusting entries, the balances in selected accounts were Accounts Receivable $221,100 debit, and Allowance for Doubtful Accounts $3,000 credit. If Wildhorse estimates that 8% of its receivables will prove to be uncollectible.
Required:
Prepare the December 31, 2017, journal entry to record bad debt expense.
Answer and Explanation:
The journal entry is shown below:
Bad debt expense Dr $14,668 ($221,100 × 8% - $3,000)
To Allowance for doubtful debts $14,668
(Being bad debt expense is recorded)
Here the bad debt expense is debited as it increased the expense and credited the allowance for doubtful debt as it decreased the assets
Verslas is a firm operating in a monopolistically competitive market. It is currently maximizing profit with an output of 1,200 units and a price of $5. Based on this information, which of the following statements must be true?
a. Verslas could not sell more units by lowering its price.
b. Verslas is earning normal profit.
c. Verslas is earning $3,600 in profit.
d. Verslas has a marginal revenue less than $5.
e. Verslas has a marginal revenue greater than $5.
Answer:
b
Explanation:
A monopolistic competition is when there are many firms selling differentiated products in an industry. A monopolistic competition has characteristics of both a monopoly and a perfect competition. the demand curve is downward sloping. it sets the price for its goods and services.
An example of monopolistic competition are restaurants
When firms are earning positive economic profit, in the long run, firms enter into the industry. This drives economic profit to zero
If firms are earning negative economic profit, in the long run, firms leave the industry. This drives economic profit to zero
in the long run, only normal profit is earned
If Verslas is producing at a profit maximising point, it means that marginal revenue equal marginal revenue and the firm is earning a normal profit
Waiting period. Upstate University currently has a 6 comma 000 -car parking capacity for faculty, staff, and students. This year, the university issued 4 comma 356 parking passes. The number of parking passes issued has been growing at a rate of 6 % per year. How long will it be before the university will need to add parking spaces?
Answer: 5.5 years
Explanation:
The 6,000 parking capacity is the future value of the number of parking passes and the 4,356 is the present value.
Using the future value formula, you can find the number of periods it would take:
Future value = Present value * (1 + rate) ^ n
(1 + rate)^ n = Future value / Present value
n = In (Future value / Present value) / In ( 1 + r)
= In (6,000 / 4,356) / In ( 1 + 6%)
= 5.495 years
= 5.5 years
Westmoreland Company Following are selected data from Westmoreland Company's financial statements.
2018 2017
Current liabilities $230,000 $160,000
Long-term debt 120,000 320,000
Stockholders' equity 420,000 540,000
Cash payments for additions to plant and equipment 45,000 32,000
Net cash flow from operating activities 80,000 51,000
Interest and principal payments 12,000 8,000
Net operating cash flows before interest and taxes 68,000 43,000
Net income 90,000 72,000
Interest expense 8,500 11,500
Income taxes 16,000 14,500
Dividends paid 15,000 30,000
Refer to the Westmoreland Company data.
The company's times interest earned ratio for 2018
a. Indicates the company cannot meet its current year interest payments out of current year earnings.
b. Shows an increase in the company's ability to pay its current debt when it comes due.
c. Decreased, which indicates the company has more cash to pay interest on its debt.
d. Increased, which indicates the company's lenders will be pleased.
Which of the following statements is true regarding valuation amounts on the balance sheet?
1. Assets are recorded at current cost.
2. Stockholders' equity reflects the current market value of the stock.
3. A variety of assumptions are used in determining amounts reported on the balance sheet.
4. Stockholders' equity reflects the amount the stockholders would receive upon liquidation.
Answer:
Westmoreland Company
1. The company's times interest earned ratio for 2018
d. Increased, which indicates the company's lenders will be pleased.
2. The TRUE statement regarding valuation amounts on the balance sheet is:
3. A variety of assumptions are used in determining amounts reported on the balance sheet.
Explanation:
a) Data and Calculations:
Westmoreland Company
Selected financial statements data.
2018 2017
Current liabilities $230,000 $160,000
Long-term debt 120,000 320,000
Stockholders' equity 420,000 540,000
2018 2017
Cash payments for additions
to plant and equipment 45,000 32,000
Net cash flow from operating activities 80,000 51,000
Interest and principal payments 12,000 8,000
Net operating cash flows before
interest and taxes 68,000 43,000
Net income 90,000 72,000
Interest expense 8,500 11,500
Income taxes 16,000 14,500
EBIT $114,500 $98,000
Dividends paid 15,000 30,000
Time interest earned (TIE) for 2018 =EBIT/ Interest Expense
= $114,500/$8,500
13.47x
TIE for 2017 = $98,000/$11,500
= 8.52x
An important strength of the trait approach to leadership is that it: a. can help with leadership selection and development. b. helps in analyzing the situational demands. c. specifies which traits are needed for leadership in a given situation. d. specifies how much of a given trait is important for leadership.
Answer: A. can help with leadership selection and development.
Explanation:
The focus of the trait approach to leadership is on the personal attributes of a leader like the values, competencies, the physical and personality characteristics, etc.
Here, focus isn't on the followers but rather on the leader as it's concerned with the leaders traits. The leaders traits are vital to the leadership process. This can help with leadership selection and development.
Using cost behavior patterns MFG Company experiences the following cost behavior patterns each week: Fixed costs: supervisor’s salary $1,600; factory rent $3,700 Mixed costs: utilities $2,100 + $6.75 per unit Variable costs per unit: manufacturing labor wages $23.00; supplies used in production $10.00; packaging cost $3.75; warranty cost $4Required:Compute total costs to be incurred for a week with 2,750 units of activity.
Answer:
Total cost= $138,025
Explanation:
Giving the following information:
Fixed costs:
supervisor’s salary $1,600
factory rent $3,700
Mixed costs:
utilities $2,100 + $6.75 per unit
Variable costs per unit:
manufacturing labor wages $23.00
supplies used in production $10.00
packaging cost $3.75
warranty cost $4
Units produced= 2,750
First, we need to calculate the total variable cost:
Total variable cost= 2,750*(6.75 + 23 + 10 + 3.75 + 4)
Total variable cost= $130,625
Now, the total fixed cost:
Total fixed cost= 1,600 + 3,700 + 2,100
Total fixed cost= $7,400
Finally, the total cost:
Total cost= 130,625 + 7,400
Total cost= $138,025
East Valve Distributors distributes industrial valves and control devices. The Eastern control device has an annual demand of 9,375 units and sells for $100 per unit. The cost of ordering is $40 per order and the average carrying cost per unit per year is $0.75. Determine the economic order quantity.
Answer:
1000
Explanation:
Given:
Annual DEMAND, D = 9375
Holding cost, H = 0.75
Cost per order, S = 40
The Economic order quantity :
EOQ = √[(2 * D * S) / H]
EOQ = √[(2 * 9375 * 40) / 0.75]
EOQ = √[(750000) / 0.75]
EOQ = √1000000
EOQ = 1000
An actual agency that arises by deduction or inferences from other facts and circumstances, including the words and conduct of the parties, best describes __________
Answer:
The correct answer is " Implied agency/ostensible".
Explanation:
An effective power implicitly granted by that of the principle to its agent has demonstrated or derived from some kind of relationship across the accused principle as well as the agency, would be considered as Implied agency.The connection between 2 organizations allows individuals might assume that one of those would be a separate operator, as well as inversely, is a ostensible agency.During 2022, its first year of operations as a delivery service, Indigo Corporation entered into the following transactions.
1. Issued shares of common stock to investors in exchange for $150,000 in cash.
2. Borrowed $40,000 by issuing bonds.
3. Purchased delivery trucks for $55,000 cash.
4. Received $17,000 from customers for services performed.
5. Purchased supplies for $6,700 on account.
6. Paid rent of $4,200.
7. Performed services on account for $11,700.
8. Paid salaries of $26,800.
9. Paid a dividend of $11,200 to shareholders.
Using the following tabular analysis, show the effect of each transaction on the accounting equation. Put explanations for changes to Stockholders’ Equity in the far right column.
Assets = Liabilities + Stockholders' Equity
Cash+Accounts Accounts Bonds+Common Retained
Receivable+Supplies+Equipment= Payable Payable Stock Earnings
Revenue-Expense-Dividends
1
2
3
4
5
6
7
8
9
10
Answer:
Indigo Corporation
Assets = Liabilities + Stockholders' Equity
1. Cash $150,000
Common Stock $150,000
2. Cash $40,000
Bonds Payable $40,000
3. Delivery trucks $55,000
Cash ($55,000)
4. Cash $17,000
Accounts Receivable ($17,000)
5. Supplies $6,700
Accounts Payable $6,700
6. Cash ($4,200) ($4,200) Rent expense
7. Accounts Receivable 11,700 $11,700 Service revenue
8. Cash ($26,800) ($26,800) Salaries exp.
9. Cash ($11,200) ($11,200) Dividends
Assets $166,200 = $46,700 + $119,500
Explanation:
a) Data and Analysis (Accounting Equation Effect):
1. Cash $150,000 Common Stock $150,000
2. Cash $40,000 Bonds Payable $40,000
3. Delivery trucks $55,000 Cash $55,000
4. Cash $17,000 Accounts Receivable $17,000
5. Supplies $6,700 Accounts Payable $6,700
6. Cash ($4,200) Rent Expense ($4,200)
7. Accounts Receivable $11,700 Service Revenue $11,700
8. Cash ($26,800) Salaries ($26,800)
9. Cash ($11,200) Dividends ($11,200)
Mark, an HR Manager at Pyramid Inc., is responsible for the HR planning process in his organization. He has reviewed the organization's strategic plans. Which of the following is most likely to be Mark's next step in the planning process?
a. Develop HR staffing plans and actions
b. Compile HR planning forecasts
c. Implement HR staffing plans and actions
d. Assess external and internal workforce
Answer: d. Assess external and internal workforce
Explanation:
There are four steps involved in the HR planning process in an organization. The first step is the one that Mark just completed of reviewing the organization's strategic plans.
The next thing to do is the assess both the internal and external workforce of the organization so as to better understand them. After this step he would have to compile HR planning forecasts and then design HR staffing plans based on the strategic goals of the organization.
33. ĐỘ CO GIÃN CỦA CẦU Khi một mặt hàng được
định giá p đô-la mỗi đơn vị, cầu của người tiêu
dùng là q đơn vị, trong đó và q liên hệ với nhau
bởi phương trình q+ 3pq = 22.
a. Tính độ co giãn của cầu theo giá đối với mặt
hàng này.
b. Với đơn giá là $3, cầu là co giãn, không co giãn
hay co giãn đơn vị?
Answer:
yyyyyyyyyyyuuuuuuuuu
A tremendous flood along the Mississippi River destroys thousands of factories, reducing the nation's capital stock by 5%. What happens to current employment and the real wage rate
Answer:
Both employment and the real wage rate would decrease
Explanation:
Given that the capital stock of a nation or country jas a direct impact on such country in terms of savings and investments which directly translates to additional.economic development.
Hence, in this case, when a tremendous flood along the Mississippi River destroys thousands of factories, reducing the nation's capital stock by 5%. What happens to current employment and the real wage rate is that "Both employment and the real wage rate would decrease"
This because there won't be adequate money available to create more employment. And with lease employment opportunities than the available labor, the real wage rate tends to decrease over time.
what is meant by access payment
Answer:
Excess Payment means the portion of the aggregate of any cash plus the fair market value (as determined by the Board of Directors, whose determination shall be conclusive evidence of such fair market value and described in a Board Resolution) of other consideration payable in respect of any tender offer or other negotiated transaction by the Company or a Subsidiary for all or any portion of the Common Stock that is in excess of an amount equal to the product of (x) the number of shares of Common Stock with respect to which the aggregate tender offer or negotiated purchase consideration is payable times (y) the Reference Price.
Explanation:
Goodluck!!
Indicate the effect of each of the following transactions on total assets, total liabilities, and total stockholdersâ equity. Select + for increase, - for decrease, or No Effect.
Transaction Total Assest Total Liabilities Total stockholders' Equity
Issue common stock
Issue preferred stock
Purchase treasury stock
Sale of treasury stock
Declare cash dividend
Pay cash dividend
100% stock dividend
2-for-1 stock split
Answer:
Transaction Assets Liabilities Stockholders' Equity
Issue common stock Increase NE Increase
Issue preferred stock Increase NE Increase Purchase treasury stock Decrease NE Decrease
Sale of treasury stock Increase NE Increase Declare cash dividend NE Increase NE
Pay cash dividend Decrease Decrease NE
100% stock dividend NE NE NE
2-for-1 stock split NE NE NE
When shares are sold or issued, they increase the stockholders equity as people buy these shares. They also increase assets because cash comes into the company when the shares are sold. This is why the Issuing of preference and common stock as well as the sale of Treasury shares had the same effects.
When cash dividends are declared, they become a liability that is owed to equity holders.
When these dividends are then paid, they remove the liability but reduce assets as cash is used to pay the dividends.
100% stock dividend reduces retained earnings but increases equity so stockholders equity does not change.
