Answer:
20%
Explanation:
The payout ratio can either computed as dividend per share divided by earnings per share or total dividends paid to common stock holders divided by net income for the year.
using the latter formula,the payout ratio of Starbuck Corporation is computed thus:
dividend payout ratio=dividends paid/net income
dividends paid to common stock holders were $50,000
net income for Starbuck for the year was $250,000
dividend payout ratio=$50,000/$250,000=20%
Answer:
C. $160,500.
Explanation:
Depreciation: The depreciation is an expense that shows a reduction in the value of the fixed assets due to tear and wear, obsolesce, usage, time period, etc. It is shown on the debit side of the income statement. It is a non-cash item that does not affect the cash balance.
The formula to compute the depreciation expense under the straight-line method is shown below:
= (Original cost - residual value) ÷ useful life
The original cost is the purchase value of the assets
The residual value is the salvage value at the end of its useful life
Answer: 5.5 years
Explanation:
The 6,000 parking capacity is the future value of the number of parking passes and the 4,356 is the present value.
Using the future value formula, you can find the number of periods it would take:
Future value = Present value * (1 + rate) ^ n
(1 + rate)^ n = Future value / Present value
n = In (Future value / Present value) / In ( 1 + r)
= In (6,000 / 4,356) / In ( 1 + 6%)
= 5.495 years
= 5.5 years
Answer:
(a) 4,000,000
(b) 3,200,000
(c) 3,170,000
(d) $3,200,000
(e) $750,000
Explanation:
(a) Number of shares authorized = 4,000,000
(b) Number of shares issued = 3,200,000
(c) Number of shares outstanding:
= Number of shares issued - Acquired shares as treasury stock
= 3,200,000 - 30,000
= 3,170,000
(d) Balance of the Common Stock account:
= Number of shares issued × Par value
= 3,200,000 × $1
= $3,200,000
(e) Balance of the Treasury Stock account:
= Acquired shares as treasury stock × Price per share
= 30,000 × $25
= $750,000