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Black_prince [1.1K]
3 years ago
12

A company has retained earnings of $94,000 as of December 31, 2014. The Pro-forma income statement projects net income of $22,00

0 for 2015. The company expects to declare their annual dividend on March 15, 2015 of $0.70 per share and has a total of 100,000 shares outstanding. What will the projected retained earnings account be as of December 31, 2015?
Business
1 answer:
GREYUIT [131]3 years ago
5 0

Answer:

$46,000.

Explanation:

To know the retained earnings at the end of 2015, we first need to calculate how much dividend the company will pay to its shareholders then add up the net income in 2015 to the remaining of retained earning at the end of 2014 (after paying 2014's dividend at Mar 2015)  to get retained earnings at the end of 2015.

Total dividend in on Mar 2015 = 0.7 x 100,000 = 70,000

Retained Earning at the end of 2015 = 94,000 - 70,000 + 22,000 = 46,000.

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Indicate the effect of each of the following transactions on total assets, total liabilities, and total stockholdersâ equity. Se
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Answer:

Transaction                       Assets            Liabilities        Stockholders' Equity

Issue common stock           Increase               NE                      Increase

Issue preferred stock         Increase               NE                      Increase  Purchase treasury stock     Decrease             NE                       Decrease

Sale of treasury stock         Increase              NE                        Increase  Declare cash dividend            NE                   Increase                   NE

Pay cash dividend               Decrease            Decrease NE

100% stock dividend              NE                        NE                      NE

2-for-1 stock split                    NE                       NE                         NE

When shares are sold or issued, they increase the stockholders equity as people buy these shares. They also increase assets because cash comes into the company when the shares are sold. This is why the Issuing of preference and common stock as well as the sale of Treasury shares had the same effects.

When cash dividends are declared, they become a liability that is owed to equity holders.

When these dividends are then paid, they remove the liability but reduce assets as cash is used to pay the dividends.

100% stock dividend reduces retained earnings but increases equity so stockholders equity does not change.

8 0
2 years ago
Productivity may best be defined as
AleksandrR [38]
<span>The answer is C. Productivity is the ratio of outputs to inputs. This answer is correct because productivity is a measure of efficiency, and is not a measure of quantity, profit (revenue), or quality. Productivity is the measure of effectiveness in converting inputs to outputs.</span>
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Answer:

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3 years ago
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Answer:

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time 4

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Business unit that has grown very slowly.
They have a very low share.<span>
</span>
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