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1 year ago

a tech company decides to pay dividends to shareholders out of its net earnings. this will decrease its

Business

2 answers:

sergeinik [125]1 year ago

8 0

A tech company decides to pay dividends to shareholders out of its net earnings. this will decrease its

This program automatically uses a shareholder's dividends to acquire additional shares of a firm's outstanding or newly issued stock.

If a organisation pays inventory dividends, the dividends lessen the agency's retained earnings and boom the common stock account. stock dividends do not bring about asset changes to the balance sheet but as a substitute affect only the equity aspect with the aid of reallocating a part of the retained earnings to the commonplace inventory account.

Dividend- A dividend is the distribution of a organisation's income to its shareholders and is determined by means of the company's board of administrators. Dividends are frequently dispensed quarterly and can be paid out as cash or in the shape of reinvestment in additional stock.

The dividend yield is the dividend per proportion and is expressed as dividend/price as a percent of a organisation's proportion charge, along with 2.five%.

not unusual shareholders of dividend-paying corporations are eligible to obtain a distribution so long as they very own the stock earlier than the ex-dividend date.

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inysia [295]1 year ago

8 0

Companies typically make large dividend cuts due to financial problems, such as falling profits or increasing shareholders. Companies sometimes cut dividend payments for more aggressive reasons, such as preparing for a major acquisition or share buyback.

Although dividends are not an explicit part of equity, paying cash dividends reduces the amount of equity on a company's balance sheet. This is because cash dividends are paid out of retained earnings, which directly shareholders' capital.

Stock and cash dividends do not affect the company's net income or earnings. Dividends, in turn, affect capital on the balance sheet. Dividends reward investors for their investment in the company, whether in cash or stock.

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Wilson has a 40 percent interest in the assets and income of the CC&W Partnership, and the basis in his partnership interest

laila [671]

Answer:

a. $24,000

b. $9,000

Explanation:

a. The amount of income or loss from the partnership is limited to the share of the loss rather than its partnership interest

In the given case, the partnership interest is $45,000 and the share of his loss is $24,000

So, $24,000 is reported in his individual income tax return

b. The computation of the Wilson's basis in his partnership interest is shown below:

= Basis in his partnership interest - share of the loss - cash distribution received from the partnership

= $45,000 - $24,000 - $12,000

= $9,000

3 0

3 years ago

At December 31, 2011 the accounting records of Gordon, Inc. contain the following items: If the Notes Payable is $10,000, the De

Vadim26 [7]

The question is incomplete. The complete question is as follows,

At December 31, 2011 the accounting records of Gordon, Inc. contain the following items:

Accounts Payable 2500

Land 30000

Building 31250

Notes Payable ?

Retained earnings 125000

Accounts Receivable 18750

Cash ?

Equipment 40000

Capital Stock 12500

If the Notes Payable is $10,000, the December 31, 2011 cash balance is:

Answer:

Cash = $30000

Explanation:

The accounting equation states that the sum of total assets is always equal to the sum of total liabilities plus total equity. We can state the equation as follows,

Total Assets = Total Liabilities + Total Equity

So,

(30000 + 31250 + 18750 + 40000 + Cash) = (2500 + 10000) + (125000 + 12500)

120000 + Cash = 12500 + 137500

Cash = 150000 - 120000

Cash = $30000

6 0

3 years ago

Firms engage in __________ when their intimate knowledge and expertise in one market allows them to offer customized marketing p

blagie [28]

Answer:

The correct answer is letter "C": market specialization.

Explanation:

After segmenting their market, companies tend to start their phase of market specialization with the information gathered in their research which is helpful to spot what the company's best segment of the market is based on age, gender, and consumer income. With that information, firms can drive their efforts toward producing a good or rendering a service that satisfies the needs of a specific group of them.

3 0

3 years ago

Which of the following terms refers to a practice of allowing the addition of new employees and jobs to existing bargaining unit

Serjik [45]

Answer:

d. accretion

Explanation:

Accretion is the process by which new employees are added to a bargaining unit where they have common interest. It involves the gradual growth of business units. For example when unions transfer workers to a new employer.

Accretion occurs without election and is usually an operation of the law.

It helps preserve industrial stability by filling new jobs without going through an adversarial election process.

5 0

3 years ago

In order to purchase a new freezer in 4 years, the Steakhouse Restaurant has decided to deposit $1,700 in an account that earns

trapecia [35]

Answer:

$ 1844

Explanation:

A = P (1 + r / n) ^ nt ; where

A = Final Amount , P = Principal base, r = Interest rate , t = no. of time periods (usually years) , n = compounding in a time period (annually)

Given : P = 1700 , r = 2% , t = 4 , n = 12

A = 1700 [ 1 + 0.02 / 12 ] ^ (12 x 4)

1700 [ 1 + 0.0017 ] ^ (12 x 4)

1700 [ 1.0017 ] ^ 48

1700 [1.0849]

= 1844

6 0

3 years ago