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valentinak56 [21]
3 years ago
10

On January 1, ABC started the year with a $400,000 balance in Retained Earnings and a $550,000 balance in Common Stock. During t

he year, the company reported net loss of $25,000, paid a dividend of $15,000, and issued more common stock for $30,500. What is total stockholders' equity at the end of the year?
Business
1 answer:
Marysya12 [62]3 years ago
7 0

Answer:

The total stockholders' equity at the end of the year is $940,500 ($360,000 +  580,500).

Explanation:

The total stockholders' equity is an element of the balance sheet that comprises retained earnings and share capital (common stock) and share premium. Retained earnings is the accumulation of net income (loss) over the years. The changes in total stockholders' equity at the end of the year are as follows:

ABC

Extract from the statement of changes in equity

                                  Retained earnings             Common stock

Opening balance                $400,000                    $550,000

Net loss                                ($25,000)                                -

Dividend paid                       ($15,000)                                -

Common stock issued                  -                             $30,500

Total stockholders' equity  $360,000                      580,500

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Explanation:

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The given statements are different in each scenario.

There are three elements of employment:

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3 years ago
According to the terminology associated with changes in currency values, which of the following choices is the case when a curre
patriot [66]

Answer:

C) devaluation and revaluation

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Devaluation and revaluation is the way that government changes the exchange rate of it's currency in relation to others.

Devaluation is the reduction of the exchange rate of a countrie's currency usually against the United States dollar. This reduces the currency value in relation to the foreign currency.

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3 years ago
Gross private domestic investment includes business: a. purchases of capital goods, all new construction, and inventory investme
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Answer:

a. purchases of capital goods, all new residental constructionand inventory investment

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5 0
3 years ago
Consider the case of the Henderson Company.
sashaice [31]

Answer:

I) Days sales outstanding (DSO) for all customers?      48.7days

= (53*0.9)+(10*0.1) = 48.7 days

II) Net sales?                                                                  $166.600

The Net sales = Gross sales - sales allowance  

The discount amount due for the 10% discount customers = 2% of the 10% of 170 mn ==>  0.02 * 0.1 * 170 ===> 0.34 mn

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   Amount paid by discount customers?                     $13.600

Explanation:

I. General Credit Policy Information

  Credit stamps                                                               2/10 Net 30

  Days sales outstanding (DSO) for all customers    48.7days

  DSO for customers who take the discount (10%)      10days

  DSO for customers who forgo the discount (90%)    53days

II. Annual Credit Sales and Costs ($ millions)

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  Amount paid by non discounted customers           $153.000

 Variable operating costs (82% of gross sales)         $139.40

 Bad debts                                                                    $0.0

 Credit evaluation & collection costs (10% of gross sales) $17.00

7 0
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Read 2 more answers
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