Answer:
All net income, less all dividends, since the company began operations.
Explanation:
Retained Earnings are the retained profits that the company keeps with itself, for meeting any case of emergency or for growing company and thus, meeting the growing expenses.
Each year when company earns profits and then, it distributes its profits in the form of dividends, the balance remaining after paying the dividends is added to retained earnings.
Thus, the entire balance of these kind of profits not paid anywhere else and also not utilized is called retained earnings.
Answer:
2,000
Explanation:
To calculate how much of an accuracy related penalty the tax payer will be assessed, we use the following method.
Answer:
The first company with detailed information.
Explanation:
Financial statements show the financial position of a company at a particular period in time. The various types are balance sheet, income statement, and cash flow statement.
The income statement shows more clearly value of the company.
When Ashton is studying the income statement, he will need as much detail as possible so that he can make informed decision to invest.
The company with detailed income statement will be a better option. The company with condensed income statement will most likely not reveal some important information that will present itself as an unpleasant surprise in the future.
Answer and Explanation:
The computation is shown below:
1. Times interest earned ratio is
= Earning before interest and taxes ÷ Interest expense
= $19,200 ÷ $940
= 20.4
2. And, the Debt to equity ratio is
= Total Liability ÷ Total stockholder's equity
= $30,180 ÷ $55,872
= 0.54
We simply applied the above formulas so that the financial ratios for long-term creditors could come
