Macmillan Corporation Has Provided the Following Financial Data

question 259

Multiple Choice

Macmillan Corporation has provided the following financial data: Dividends on common stock during Year 2 totaled $7,200. The market price of common stock at the end of Year 2 was $3.69 per share. The company's working capital at the end of Year 2 is:

• A)$732,000
• B)$831,000
• C)$289,000
• D)$590,000

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Definitions:

Excess Capacity

A situation where a company can produce more goods or provide more services than currently demanded, indicating unused productive potential.

Special Order

A one-time customer order often involving a large quantity and requiring a separate pricing or product specification arrangement.

Special Order Price

The price charged for a product or service that is outside the company's normal scope of work or products; often tailored pricing for a specific customer request.

Variable Costing

A costing method that includes only variable production costs—direct materials, direct labor, and variable manufacturing overhead—in product cost calculation, contrasting with absorption costing that also includes fixed costs.