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1 year ago

What item flows from the income statement to the statement of retained earnings?.

Business

1 answer:

Reil [10]1 year ago

5 0

Net Income flows from the income statement to the statement of retained earnings.

The balance sheet is balanced when net income from the income statement, less any dividends paid, is transferred to the retained earnings column. Additional connections- Long-term debt on the balance sheet is used to determine interest expenditure on the income statement.

Net income: In commerce, Net Income is the amount of cash left over on balance costs, like salaries and wages, the value of commodities or raw materials, and taxes, are paid. Net Profit is the amount that an individual keeps after paying taxes, insurance premiums, and retirement contributions.

Net Income.

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The accuracy of cost-volume-profit analysis is limited because it assumes a strictly linear relationship between the variables.

AnnyKZ [126]

Answer:

True

Explanation:

One of the assumptions of this analysis is that it assumes a linear dependence on costs and income in the analysis interval.

A very useful tool when making strategic decisions, allowing to analyze different scenarios and individual projects, is the Cost-Volume-Profit.

Analysis (CVP) that works under the premise that variable costs increase in the same proportion that increases the sales of a product, while the fixed ones are independent of the volume of sales.

The CVP is useful both for planning and for evaluating results since it emphasizes the behavior of variable costs and the impact that a variation in sales volume can have on costs and benefits.

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3 years ago

If a healthcare employee feels they discriminated based on their disability, which organization would assist in enforcing the ap

natka813 [3]

The ADA protects a person who is regarded (or treated) by an employer as if he or she has a substantially limiting impairment, even if he or she has no impairment or has only a minor impairment, particularly if the employer acts based on myths, fears, or stereotypes about a person's medical condition.

The Rehabilitation Act makes it illegal to discriminate on the basis of disability in programs conducted by Federal agencies, in programs receiving Federal financial assistance, in Federal employment, and in the employment practices of Federal contractors. The standards for determining employment discrimination under the Rehabilitation Act are the same as those used in the Americans with Disabilities Act.

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3 years ago

Assuming that the company has retained earnings of "$86,000", all of which is to be paid out in dividends, and that preferred di

Sladkaya [172]

Answer:

a. preferred stock=$32000 , ordinary stock=$54000

b. preferred stock=$16000 , ordinary stock=$70000

Explanation:

Lets assume the company has two class of preferred stock, cumulative and non-cumulative. Cumulative preferred stock are shares whose fixed return (i.e fixed dividend) if not paid in one accounting period accumulates with forthcoming years' return and is paid in accumulation whereas non-cumulative preferred stock holders won't be paid for dividends not paid in a year.

Lets assume, Company has 2000 $100 par value 8% preferred stock and 5100 $50 par value ordinary shares.

1st case: CPS (Cumulative preferred stock) and OS (Ordinary stock.)

$86000 of retained earnings will be distributed as follows:

Preferred Stock dividend each year: 2000×$100×0.08

PS dividend=$16000 per year

Now accumulate for 2 years,

CPS dividend = $16000×2

CPS dividend = $32000

After preferred stock holders are paid, the remaining retained earnings are wholly distributed to ordinary stock holders.

Ordinary stock dividend = $86000 - $32000

Ordinary stock dividend = $54000.

2nd case: NCPS (Non-cumulative preferred stock) and OS (Ordinary stock).

$86000 of retained earnings will be distributed as follows:

NCPS dividend for the current year only = 2000×$100×0.08

NCPS dividend for the current year only = $16000

Now, the remaining is distributed to ordinary stock holders as follows:

Ordinary stock dividend = $86000 - $16000

Ordinary stock dividend = $70000

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3 years ago

Great Eastern Rectangle (GER) currently has 970,000 shares of stock outstanding that sell for $29.25 per share. Assuming no mark

Nina [5.8K]

Answer:

Please see attachment

Explanation:

Please see attachment

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3 years ago

Jacobi Supply Company recently ran into certain financial difficulties that have resulted in the initiation of voluntary settlem

Mashcka [7]

Answer: Composition

Explanation:

The company owes $150,000 and would pay $0.50 on every dollar immediately.

The cash payment required of the company would therefore be:

= Amount of debt in $ - Amount to be paid per dollar.

= 150,000 * 0.5

= $75,000

Timing of payment is immediately.

A composition refers to an agreement between a debt and its creditors that would allow it to pay off part of its debt in lieu of the total value. This is usually done when the debt risks being insolvent or bankrupt but can still pay off part of its debt.

The agreement would enable it pay off some of the debt and the entire debt would be written off. The benefit to the debtor is that they avoid bankruptcy and the benefit to the creditor is that they get more than they would have gotten had bankruptcy been declared.

A composition is what happened here as a part of debt was paid to satisfy the full thing.

5 0

3 years ago

What item flows from the income statement to the statement of retained​ earnings?.

What item flows from the income statement to the statement of retained earnings?.