Which one of the following below is not an element of intern

Which one of the following below is not an element of internal control? a. risk assessment b. information and communication c. behavior analysis d. monitoring 1. The following information pertains to Carlton Company. Assume that all balance sh both average and ending balance figures. Assume that all sales were on credit. Cash and short-term investments Accounts receivable (net) Inventory Property, plant and equipment $ 40,000 25,000 20,000 Total assets $295,000 Liabilities and Stockholders\' Equity Current liabilities Long-term liabilities Stockholders\' equity-common 60,000 85,000 Total liabilities and stockholders\' equity 295,000 Income Statement Net sales Cost of goods sold Gross margin Operating expenses Interest expense $ 85,000 45,000 40,000 15,000 5,000 $20,000 Net income Number of shares of common stock Market price of common stock Total dividends paid Cash provided by operations 6,000 $20 $5,400 $30,000 2. What is the dividend yield for this company? Round your answer to one decimal a. 22.2% b. 9.0% c. 4,5% d. 16.6%

Solution

Solution 1:

Behaviour analysis is not an elment of Internal Control.Internal control primarily consists of risk assessment, information & communication and monitoring but not the behavour analysis.

Hence option \"c\" is correct.

Solution 2:

Total Dividend paid = $5,400

Dividend per common share = total dividend paid / number of common shares = $5400 / 6000 = $0.9

Market price of common stock = $20

Dividend yield = Dividend per common share / current market price of common stock

= $0.9 / $20 = 4.5%

Hence option \"c\" is correct.