1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
daser333 [38]
3 years ago
5

The Atlantic Co. is an all-equity company with sales of $21,600, costs of $14,780, depreciation of $2,000, and taxes of $1,012.

The dividend payout ratio is 12 percent. Sales are expected to increase by 22 percent next year. What is the pro forma addition to retained earnings assuming all costs vary proportionately with sales
Business
1 answer:
lora16 [44]3 years ago
3 0

Answer:

$5174.75

Explanation:

(21600-14780-2000)*1.22*0.88=5174.75

You might be interested in
As a gardener, Joey earns $19.20 per hour. He earns double time for work on Saturdays. Last week, he worked 25 regular hours plu
erastovalidia [21]
Kdisbzibsisbsisbzosbfjnrnd
5 0
3 years ago
The stockholders’ equity section of Pretzer Corporation consists of common stock ($10 par) $2,650,000 and retained earnings $532
CaHeK987 [17]

Answer:

A. $2,650,000 $3,312,500

B.$532,000 $291,500

C.$10 $10

Explanation:

Before Dividend After Dividend

(a)Stockholders’ equity

Paid-in capital

Common stock, $10 par

$2,650,000 $2,915,000

In excess of par value $106,000

Total paid-in capital

$2,650,000 $3,021,000

Retained earnings

$532,000 $291,500

Total stockholders’ equity

$3,182,000 $3,312,500

(b)Outstanding shares

$265,000 $291,500

(c)Par value per share

$10 $10

10×$26,500=$265,000

$2,650,000+$265,000=$2,915,000

$14×$26,500=$371,000-265,000

=$106,000

$265,000+$26,500=$291,500

8 0
3 years ago
Bramble Family Importers sold goods to Tung Decorators for $39,000 on November 1, 2020, accepting Tung’s $39,000, 6-month, 6% no
Aliun [14]

Answer:

note receivable       39,000 debit

        sales revenue               39,000 credit

--Nov 1st to record sale of goods to Tung Decorators --

interest receivalbe       390 debit

interest revenue                      390 credit

--Dec 31th adjusitng entry for accrued interest --

cash                       40,170 debit

        note receivable                39,000 credit

        interest receivable                390 credit

        interest revenue                    780 credit

--May 1st collection of the note--

Explanation:

<u>First</u>, we record the sales revenue and we enter the promissory note at his nominal. Interest will be accrued as the time past.

<u>interest for the period Nov 1st - Dec 31th</u>

prncipal x rate x time

we must always have rate adn time in the same metric so we express the mont has fraction of year:

39,000 x 6% x 2/12  = 390

<u>collection of the note</u>

cash procceds: principal + interest

39,000 x (1 + 6% x 6/12)  = 40,170

we write off both receivables, the note and the interest,

and we recognize interest revenue for the difference

40,170 - 39,000 - 390 = 780

6 0
2 years ago
Name 5 banking task that can be done online
Schach [20]
- Check Account Balances
-View all of your bank accounts IRA's and securities
- Send Money 
-Receive Money
- Add a new card to your account<span />
8 0
3 years ago
Read 2 more answers
"Parker Company stock is currently selling for $130.00 per share and the firm's dividends are expected to grow at 6 percent inde
8_murik_8 [283]

Answer:

Cost of equity = 10.7%

Explanation:

<em>We will work out the required rate of return using the the dividend valuation model. The model states that the value of a stock is the present value of the future divided discounted at the cost of equity. </em>

The model is given below:

P = D× (1+g)/(r-g)

P- price of stock, D- dividend payable now, g- growth rate in dividend, r- cost of equity

So we substitute  

130 = 5.50× (1+r)/(r-0.06)

cross multiplying

(r-0.06)× 130 = 5.50 × (1+r)

130 r- 7.8  = 5.50 + 5.50r

collecting like terms

130 r - 5.50r=5.50 + 7.8

124.5  r= 13.3

Divide both sides by 124.5

r =13.3 /124.5=  0.1068

r=0.1068 × 100=  10.7%

Cost of equity = 10.7%

6 0
3 years ago
Other questions:
  • Explain why ethene is a planar molecules while ethyne is a linear molecules​
    13·2 answers
  • Who do the dolls hanging from the trees represent stamp act?
    12·1 answer
  • How do u run a business
    9·2 answers
  • An organization in which management spreads authority and responsibility widely over lower levels is called a ______ organizatio
    7·1 answer
  • Gabby is an aspiring country artist. She has a record contract that pays her a base rate of $200 a month and an additional $12 f
    15·1 answer
  • Coastal Pharma and Brainwave Technologies have together invested and created a new organization, InnerView, to focus on developi
    7·1 answer
  • Sources of consumer information might include ____.
    9·1 answer
  • The auto repair shop of Quality Motor Company uses standards to control the labor time and labor cost in the shop.The standard l
    7·1 answer
  • Mark the example as ethical behavior, unethical behavior, or conflicts of interest:
    14·2 answers
  • Debra tracks her business finances in a spreadsheet. She wants to figure out how much she could increase profits if she raises p
    8·2 answers
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!