Looper, Inc

question 202

Multiple Choice

Looper, Inc. has 30,000 shares of 6%, ₤100 par value, noncumulative preference shares and 50,000 ordinary shares with a ₤1 par value outstanding at December 31, 2014. There were no dividends declared in 2013. The board of directors declares and pays a ₤250,000 dividend in 2014. What is the amount of dividends received by the common shareholders in 2014?

• A) ₤0
• B) ₤180,000
• C) ₤250,000
• D) ₤70,000

---

Definitions:

Inventory Sold

The total cost of goods or merchandise a business has sold to customers during a specific period, key for calculating cost of goods sold.

Factored Receivables Financing

A financial transaction where a business sells its accounts receivable to a third party at a discount in exchange for immediate cash.

Compensating Balance

A minimum balance that must be maintained in a bank account, often required by banks as a condition for granting a loan or extending credit.

Assigned Receivables Financing

A financing method where a company uses its accounts receivable as collateral to receive a loan or advance.