Given Below Are Comparative Balance Sheets and an Income Statement

question 113

Multiple Choice

Given below are comparative balance sheets and an income statement for Claret Corporation
$\begin{array} { l } \hline \text { Claret Corporation } & \text { Claret Corporation } \\\text { Balance Sheets }-2009 & \text { Income Statement } \\&\text { For the year ended } 2009\\\begin{array}{|l|r|r|}\hline& {\text { Dec.31 }} & \text { Jan. 1 } \\\hline \text { Equipment (net) } & \$ 57,200 & \$ 66,300 \\\hline \text { Inventory } & 32,500 & 36,400 \\\hline \text { Accounts receivable } & 46,800 & 37,700 \\\hline \text { Cash } & 15,600 & 15,600 \\\hline & \$ 152,100 & \$ 156,000 \\\hline \text { Accounts payable } & 26,000 & 28,600 \\\hline & & \\\hline \text { Dividends payable } & 7,800 & 3,900 \\\hline \text { Long-term note payable } & 14,300 & 14,300 \\\hline \text { Share capital, \$5 par } & 72,800 & 72,800 \\\hline \text { Retained earnings } & 31,200 & 36,400 \\\hline & \$ 152,100 & \$ 156,000 \\\hline\end{array}&\begin{array}{|l|r|}\hline \text { Sales } & \$ 228,800 \\\hline \text { Cost of goods sold } & (137,540) \\\hline \text { Gross profit on sales } & \$ 91,260 \\\hline \text { Operating expenses } & (75,868) \\\hline \text { Operating profit } & \$ 15,392 \\\hline \begin{array}{l}\text { Interest expense and } \\\text { income taxes }\end{array} & (9,100) \\\hline \text { Profit } & \$ 6,292 \\\hline\\\hline\\\hline\\\hline\\\hline\\\hline\end{array}\end{array}$
All sales were made on account. Cash dividends declared during the year totaled $11,492
-Refer to the above data. Claret Corporation's return on ordinary shareholders' equity for 2009, rounded to the nearest tenth of a percent, is:

• A) 5.9%.
• B) 6.05%.
• C) 14.4%.
• D) 9.4%.

Comprehend the process of director selection and the time frame for their service.

Describe how the number of corporate directors is determined and the significance of affiliated and unaffiliated directors.

Recognize the requirements for a valid corporate board meeting and the concept of a quorum.

Distinguish between the roles of shareholders and directors/officers, and understand shareholder rights and responsibilities.

---

Definitions:

Punish

The act of imposing a penalty or consequence on someone for their behavior or actions, often as a method of enforcing rules or discipline.

OB Mod

A management approach focusing on changing employees' behaviors through a system of rewards and punishments known as organizational behavior modification.

Reinforcement

In organizational behavior, the use of consequences to modify the occurrence and form of behavior through rewards or punishments.

Operant Conditioning

A learning process through which the strength of a behavior is modified by reinforcement or punishment.