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Naddik [55]
3 years ago
9

Omega Inc. expects its net income to be $525,000 this year. The firm's dividend payout ratio is 60 percent. The firm is financed

with 30 percent debt, and it has no preferred stock outstanding. What is the retained earnings break point for Omega Inc.?
Business
1 answer:
REY [17]3 years ago
3 0

Answer: $700,000

Explanation: Retained earnings is the amount of earnings left with the company after paying for dividends of common stockholders.

Retained earnings break even can be computed as follows :-

Break\:even=\frac{retained\:earnings}{equity\:ratio}

where,

retained earnings = net income (1- payout ratio)

                              = $525,000 (1 - 60%)

                              =  $210,000

therefore,

Break\:even=\frac{210,000}{0.3}

=$700,000

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intext:"A corporation issued 6,000 shares of its $2 par value common stock in exchange for land that has a market value of $84,0
guajiro [1.7K]

Answer:

Date     Account Titles and Explanation              Debit       Credit

              Land                                                         $84,000

                 Common stock                                                     $12,000

                  Paid in capital in excess of par value                 $72,000

Workings:

Amount of Common stock = Number of shares * Paid in capital per share

= 6,000 shares * $2

= $12,000

Amount of excess of paid in capital = Market value of land - Amount of common stock

= $84,000 - $12,000

= $72,000

8 0
3 years ago
EPA regulations permit the release of 150 micrograms of particulate matter per cubic meter of air every 24 hours from paint shop
lesya [120]

Answer:

Legal approach of green management  Utilimotors use

Explanation:

we use here Legal approach

because Legal approach is the type of green management approach and which is simply following that what is required by the law

and They try to comply with the current laws and regulations

but do not go anything further.

so here Utilimotor is using the legal approach by following the EPA regulation and ensuring to release emissions only within the permissible limit

so Legal approach of green management  Utilimotor use

3 0
3 years ago
Does the fact that your bank keeps only a fraction of your account balance in reserve worry you? Why don't people rush to the ba
m_a_m_a [10]

Answer

The answer and procedures of the exercise are attached in the following image.

Explanation  

Please consider the data provided by the exercise. If you have any question please write me back. Is an opinion what contains the image. Judge it like it is.

4 0
3 years ago
Casey Motors recently reported net income of $148 million. The firm's tax rate was 40.0% and interest expense was $46 million. T
HACTEHA [7]

Answer:

$61,640,000

Explanation:

Earning before tax:

= Net income ÷ 60%

= $148,000,000 ÷ 60%

= $246,666,667

EBIT:

= Earning before tax + Interest expense

= $246,666,667 + $46,000,000

= $292,666,667

EVA:

= EBIT(1 - t) - (Capital employed × cost of capital)

= $292,666,667(1 - 0.4) - ($1,036,000,000 × 11%)

= $175,600,000 - 113,960,000

= $61,640,000

3 0
3 years ago
During 2016, Chun's Book Store paid $485,000 for land and built a store in Cleveland. Prior to construction, the city of Clevela
Oksana_A [137]

Answer:

Journalize transactions for the following:

a. Purchase of the land

Dr Land 485,000

    Cr Cash 485,000

b. All the costs chargeable to the building in a single entry

Dr Building 735,020

    Cr Cash 735,020

The building accounts includes the $690,000 (construction costs) + $28,300 (capitalized interests) + $1,400 (building permit) + $15,320 (architect's fees).

c. Depreciation on the building for 2016 Explanations are not required.

Dr Depreciation expense 5,686

    Cr Accumulated depreciation 5,686

Only the building is depreciated, land is not. Depreciation expense per year = ($735,020 - $337,000) x 1/35 = $11,372. Since Chun can only depreciate half a year, the depreciation expense will be $5,686.

Report Chun's Book Store's plant assets on the company's balance sheet at December 31, 2016.

Land $485,000

Building $729,334

What will Chun's income statement for the year ended December 31, 2016, report for these facts?

nothing, since interests were capitalized

4 0
3 years ago
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