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Juli2301 [7.4K]
1 year ago
11

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

Business
1 answer:
Ray Of Light [21]1 year ago
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

#SPJ4

​

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The minimum possible value of the "Frequency of Championships" Herfindahl-Hirschman Index is:__________.
Virty [35]

Answer:

1/N

Explanation:

Herfindahl-Hirschman Index is used to measure the market concentration and market competitiveness of firm(s).

A major advantage of this index is that it is easy to calculate while using  small amount of data required for calculation.

It been used by government agencies such as the U.S. Department of Justice for cases involving mergers and acquisition.

Since we are concerned with the minimum possible value we divide \frac{1}{N}.

7 0
3 years ago
Absorption and Variable Costing; Inventory Valuation Bondware Inc., has a highly automated assembly line that uses very little d
Agata [3.3K]

Answer:

Following are the response to the given question:

Explanation:

                            Cost of Goods Sold  

Absorption costing 92000+440\times (520+460+180) \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ =  602400

Variable costing 78000+440\times (520+460) \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ =509200

6 0
3 years ago
Nichols Enterprises has an investment in 250 bonds of Elliott Electronics that Nichols accounts for as a security available for
sweet [91]

Answer:

The value per bond must be $1000

Explanation:

The reason is that the short term investments must be valued at current fair market value which is $1000 per bond today so the perceived value of the unit bond which is $1200 per bond is irrelevant here.

The amount recorded = Number of bonds * Current market value

The amount recorded = 250 * $1000 = $250,000

3 0
2 years ago
Summerdahl Resort’s common stock is currently trading at $36 a share. The stock is expect- ed to pay a dividend of $3.00 a share
Zigmanuir [339]

Answer:

<u>Cost of common equity is 0.1333 or 13.3%</u>

Explanation:

P= D1/(r-g)

D1=3.00

g= 0.05

P=36

Here we have ,

3.00/(r-0.05) = 36

r-0.05= 3/36= 0.08333

r= 0.1333= 13.33%

6 0
3 years ago
Read 2 more answers
For the most recent year, Triad Company had fixed costs of $190,000 and variable costs of 75% of total sales revenue, earned $58
poizon [28]

Answer:

The computations are as follows

Explanation:

a)  Before tax income  is

 = After Tax Income ÷ (1 - Tax Rate)

= $58,500 ÷ (1 - 0.35)

= $90,000

b) Total Contribution Margin

Contribution Margin = Fixed Costs + Before Tax Income

= $190,000 + $90,000

= $280,000

c) Calculation of Total Sales

Variable Cost is 75% of Sales

SO, Contribution Margin 25% of Sales

Contribution Margin = $280,000

25% of Sales = $280,000

Sales = $280,000 ÷ 25%

         = $1,120,000

d) Break Even Point in dollars

Break Even Point in dollar = Total Fixed Costs ÷ Contribution Margin percentage

= $190,000 ÷ 25%  

= $760,000

We simply applied the above formula

8 0
3 years ago
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