On february 15, jewel company buys 7,500 sharfernwood company is preparing the company's statement of cash flows for the fiscal year just ended. the following information is available: retained earnings balance at the beginning of the year $ 308,000 cash dividends declared for the year 68,750 proceeds from the sale of equipment 118,000 gain on the sale of equipment 6,750 cash dividends payable at the beginning of the year 30,250 cash dividends payable at the end of the year 37,500 net income for the year 151,250 the ending balance in retained earnings is: es of marcelo corp. common stock at $28.58 per share plus a brokerage fee of $425. the stock is classified as long-term available-for-sale securities. this is the company’s first and only investment in available-for-sale securities. on march 15, marcelo declares a dividend of $1.20 per share payable to stockholders of record on april 15. jewel received the dividend on april 15 and ultimately sells half of the marcelo stock on november 17 of the current year for $29.35 per share less a brokerage fee of $275. the journal entry to record the purchase on february 15 is:

P8-4b dropping unfavorable division based on the following analysis of last year's operations of groves, inc., a financial vice president of the company believes that the firm's total net income could be increased by $160,000 if its design division were discontinued. (amounts are given in the thousands of dollars.) required provide answers for each of the following independent situations: a. assuming that total fixed costs and expenses would not be affected by discontinuing the design division, prepare an analysis showing why you agree or disagree with the vice president. b. assume that the discontinuance of the design division will enable the company to avoid 30% of the fixed portion of cost of services and 40% of the fixed operating expenses allocated to the design division. calculate the resulting effect on net income. c. assume that in addition to the cost avoidance in requirement (b), the capacity released by discontinuance of the design division can be used to provide 6,000 new services that would have a variable cost per service of $60 and would require additional fixed costs totaling $68,000. at what unit price must the new service be sold if groves is to increase its total net income by $180,000?