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1 year ago

A. are dividends paid to creditors or investors? explain why. b. how much cash is in the retained earnings account?

1 answer:

4 0

An investor gets paid a dividend. An ownership stake in the company gives the investor (owner) the right to a portion of the company's earnings. This payout of a share of profits of a business to the owners is called a dividend.

The Retained Earnings account has no money in it. Retained Earnings represent the business's commitments to its stockholders. It is the number of past earnings that have not been paid out to owners.

<h3><u>Retained Earnings: What Are They?</u></h3>

After deducting dividend payments, a company's retained earnings are its total net earnings or profits. The term "retained" refers to a crucial idea in accounting that describes how earnings were held by the corporation rather than distributed to shareholders as dividends.

Because of this, retained earnings go down when a business experiences a loss or pays dividends and go up when new profits are generated.

<u>What are the retained earnings calculation and formula?</u>

RE = BP + Net Income (or Loss) - C - S, where:

BP = Starting Period RE

C = Cash dividends

S = stock dividends.

Learn more about creditors and investors with the help of the given link:

brainly.com/question/17364419

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2 years ago

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4 years ago

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3 years ago

"A customer has purchased 1,000 shares of ABC stock at $44 per share, paying a commission of $1.00 per share for the transaction

ikadub [295]

Answer:

1,200 shares held at a cost basis of $37.50

Explanation:

Since there are 1,000 shares are purchased

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So the number of shares after the dividend is

= 1,000 × (1 + dividend percentage)

= 1,000 × (1 + 0.20)

= 1,000 × 1.20

= 1.200

And, the price per share is

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= $45

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3 years ago

At Medallion Industries, variable cost per unit is budgeted to be $8.00 and fixed cost per unit is budgeted to be $5.00 in a per

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Answer:

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Explanation:

Giving the following information:

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<u>First, we need to calculate the total fixed cost:</u>

Total fixed cost= 5*4,000= $20,000

<u>Now, we can determine the total cost for 5,100 units:</u>

Total cost= 5,100*8 + 20,000

Total cost= $60,800

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3 years ago