On October 15, 2021, a 5% stock dividend was declared and distributed. The fair value of the common stock on this date was $31.4 per share. Fractional share rights represented 100,000 shares. Cash was paid in lieu of issuing fractional share rights. On the date of declaration and payment, the company had 11.6 million shares of common stock outstanding. The par of the common shares was $5 per share.

Prepare journal entries for each transaction wherever necessary.

Explanation:

October 15,2021

Retained Earnings 11.6*5*5%  Dr.$2,900,000

Cash                                          Cr.$2,900,000

Treasury Stock 100,000*31.4  Dr.$3,140,000

Cash                                          Cr.$3,140,000

answer; ///(c) i believe its it ignores cash flows following the payback period;

a manufacturer of printed circuit boards uses exponential smoothing with trend to forecast monthly demand of its product. at the end of december, the company wishes to forecast sales for january. the estimate of trend through november has been 200 additional boards sold per month. average sales have been around 1000 units per month. the demand for december was 1100 units. the company uses α = 0.20 and β = 0.10. make a forecast including trend for the month of january.