On June 30, 2015, Stephans Company Showed the Following Data

question 156

Multiple Choice

On June 30, 2015, Stephans Company showed the following data on the equity section of their balance sheet: On July 1, 2015, Stephans declared and distributed a 5% stock dividend. The market value of the stock at that time was $13 per share. Following this transaction, how much would the total stockholders' equity be?

• A)$1,340,000
• B)$1,500,000
• C)$1,260,000
• D)$1,214,000

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Definitions:

Setup Cost

The expenses incurred to get equipment ready to process a different batch of goods.

Production Cycle

The series of steps involved in producing a good or service, from initial raw materials to the finished product.

Kanban

A visual scheduling system that controls the logistical chain from a production point of view, aiming to improve manufacturing efficiency by limiting work-in-progress items.

Safety Stock

Additional inventory kept on hand to guard against stockouts caused by uncertainties in demand and lead-time.