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german
4 years ago
5

A company earned net income of $ 80 comma 000 during the year ended December​ 31, 2016. On December​ 15, the company declared th

e regular dividend on its 2​% preferred stock ​(13 comma 000 shares with total par value of $ 130 comma 000​) and a $ 0.75 per share dividend on its common stock ​(65 comma 000 shares with total par value of $ 650 comma 000​). The company paid the dividends on January​ 4, 2017. Did Retained Earnings increase or decrease during 2016​? By how​ much?
Business
1 answer:
saw5 [17]4 years ago
5 0

Answer:

Retained Earnings increased $28,650 in 2016.

Explanation:

The total increase in Retained Earnings account = Net income = $80,000;

The total decrease in Retained Earnings account = Dividend paid to common shares + Dividend paid to preferred shares = Dividend per common share x Number of common share outstanding + % dividend on preferred stock x par value of preferred stock x number of preferred stock outstanding = 0.75 x 65,000 + 2% x (130,000 / 13,000) x 13,000 = $51,350;

So, Net effect on Retained Earnings Account =  $80,000 - $51,350 = $28,650 ( increase).

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2. Making payment of supplier invoices, is another way to use credit, to carry out this, I have to create the invoice.

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2 years ago
Mark and Riley live in Orlando and decide to open a souvenir shop. They incorporate their shop, Sunshine Gifts, Inc., in the sta
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The stage of adjourning t is characterized by the final stage of project development. When this is over the team disperses, so at this stage there is often a sense of loss by team members, who have formed bonds of rapprochement and friendship throughout the development of the project and at the end of the experience develop a sense of loss.

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3 years ago
In 2016, the population of the United States was approximately 325 million people, with an annual growth rate of approximately 0
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The population would be 1318 million

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<h2>Nt =Noe^{T * r}</h2>

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