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artcher [175]
3 years ago
11

Now Inc. released its annual results and financial statement. Grace is reading the summary in the business pages of today's pape

r. In its annual report this year, NOW Inc. reported a net income of $152 million. Last year, the company reported a retained earnings balance of $459 million, whereas this year it increased to $540 million. How much was paid out in dividends this year?
a. $4 million
b. $360 million
c. $71 million
d. $233 million
Business
1 answer:
Goryan [66]3 years ago
5 0

Answer:

c. $71 million

Explanation:

The net income and dividends are the factors responsible for increase an decrease in retained earnings. Net income is added to the retained earnings balance while dividend is deducted from it.

Given the following information about  NOW Inc,

net income = $152 million

Opening retained earnings balance = $459 million

Closing retained earnings balance = $540 million

$459 million + $152 million - Dividends = $540 million

Dividends = $459 million + $152 million - $540 million

Dividends = $71 million

Option c. $71 million

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A T-bill that is 290 days from maturity is selling for $96,040. The T-bill has a face value of $100,000.
umka2103 [35]

Answer: a 0.049, 0.05 and 0.05 or 5%

b 0.039, 0.041 and 0.041 or 4%

Explanation:

Ai discounted yield = [(Face value - purchase price)/Face value] * 360/ maturity

Discount yield =:[(100000 - 96040)/100000] * 360/290

= 0.0396* 1.24

= 0.049

ii. Bond equivalent yield (BEY) = [(Face value - purchase price)/purchase value] * 365/M

BEY= [(100000 - 96040)/96040] * 365/290

BEY = 0.05

iii EAR = [(1+BEY/n)exp n - 1)

EAR = [(1 + 0.05/(365/290)) exp (360/290) - 1]

EAR = [(1 + 0.05/1.26) exp (1.26) - 1

EAR = (1.04) exp (1.26) - 1

EAR = 0.05 or 5%

The same formula are applied for the B part

Discount yield = [(100000-96040)/100000] * 360/365

Discount yield = 0.0396 * 0.986

= 0.039

B ii. BEY = [(100000 - 96040)/96040] * 365/365

BEY = 0.041 × 1

BEY = 0.041

B iii. EAR = [(1 + 0.041/(365/365))exp (365/365) - 1

EAR = (1 + 0.41) - 1

EAR = 0.041 or 4%

4 0
3 years ago
In the AD partnership, Allen's capital is $140,000 and Daniel's is $40,000 and they share income in a 3:1 ratio, respectively. T
Mamont248 [21]

Answer:

D) 137000 39000

Explanation:

Allen  140,000

Daniel 40,000

Capital before admission 180,000

share ratio 3:1

Capital after admission:

180,000 + 40,000 = 220,000

David participation: 20%

220,000 x 20% = 44,000

David investment  40,000

goodwill: 4,000

There is a difference in goodwill which will be supported for the old partner as their current share ratio

Allen 4,000 x 3/4 = 3,000

Daniel 4,000 x 1/4 = 1,000

Capital after David admission:

140,000 - 3,000 = 137,000

40,000 - 1,000 = 39,000

6 0
3 years ago
Ramon works at Chicago Medical Instruments. His job was recently redefined so that he now has more flexibility in the hours he w
jolli1 [7]

Answer:

Chicago Medical Instruments is trying to change Ramon's job so that it has more:

B. Autonomy

Explanation:

Autonomy means being capable of making informed decisions. In the job is about the freedom an employee has to perfom the work. Chicago Medical Instruments is allowing more flexibility in the hours Ramon works and more say in the procedures he use on the job. So, this is giving him more freedom which means that he has more autonomy.

6 0
3 years ago
Sarjit Systems sold software to a customer for $293,000. As part of the contract, Sarjit promises to provide "free" technical su
kakasveta [241]

Answer:

Dr Cash/ Accounts Receivables $249,050

Cr Revenue $249,050

Explanation:

The customer receives a discount for purchasing the bundle of goods because the sum of the stand-alone selling prices ($300,000) exceeds the promised consideration ($293,000). There is a discount of $7,0000

This would be split between the two performance obligations as follows

Technical support = $45,000/$300,000 X $7,000 = $1,050

Software = $255,000/$300,000 X $7,000 = $5,950

The software sale is $255,000 - $5,950 = $249,050

3 0
3 years ago
Read 2 more answers
Roca Company originally issued 30,000 shares of $5 par common stock for $240,000 on January 3, 2020. Roca purchased 1,500 shares
hram777 [196]

Answer:

Date   Particulars                                    Debit          Credit

Jan 3  Cash                                           $240,000

                Common stock (30000*5)                       $150,000

                Paid-in-capital in excess                          $90,000

Nov 2  Treasury stock                            $15,000

                  Cash                                                         $15,000

Dec 6  Cash                                              $7,200

                  Treasury stock[75000/1500*600)          $6,000

                   Paid in capital from treasuty cash          $1,200

4 0
2 years ago
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