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myrzilka [38]
3 years ago
12

Clark had no stock transactions in 2018​, so the change in​ stockholders' equity for 2018 was due to net income and dividends. I

f dividends were $ 55 comma 000​, how much was Clark​'s net income for 2018​? Use the accounting equation and the statement of retained earnings.
Business
1 answer:
liraira [26]3 years ago
6 0

Answer:

The question is not complete.

Here is the complete question:

Stockman Company had the following on the dates​ indicated:

                            12/31/18                   12/31/17

total assets         $540,000              $320,000

total liabilities          33,000             29,000

Stockman had no stock transactions in 2018​, so the change in​ stockholders' equity for 2018 was due to net income and dividends. If dividends were $65,000​, how much was Stockman​'s net income for 2018​? Use the accounting equation and the statement of retained earnings.

Here is the answer:

Explanation:

Accounting equation is given by :

Total Assets   = Total Liabilities  + Equity.

The first step is to determine the retained earnings at the beginning of the year:

                            As at 12/31/2017

Total Assets($)                                 =      Total Liabilities($)       Equity ($)

320,000                                                    29,000                    +   291,000(i)

i. The balancing figure amounts to retained earnings at the beginning of the year: $291,000.

To determine the net income for the current year, find the closing balance value for one complete side of the accounting equation (asset)

Total Assets($)                                 =      Total Liabilities($)       Equity ($)

540,000                                                      33,000                +                         x

The missing figure x is made up of closing retained earnings for the period which consist of opening retained earnings plus net income minus dividend. And the value of closing retained earnings suppose to balance  off the other side of the equation = $540,000 - $33,000

                                                       = $507,000.

The balance of the closing retained earnings suppose to $507,000 in order to balance the other side.

It can be represented as follow:

= Opening retained earnings   + Net income   -  Dividend

$507,000 =  $291,000                               +   x                      -  $65,000

$507,000 = $291,000 -$65,000 + x

$507,000 = $226,000 + x

= $281,000

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Answer:

Net income= $24,550

Explanation:

The contribution margin ratio is <u>the result of deducting from sales all the variable costs, </u>expressed as a<u> percentage.</u>

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<u>First, we need to calculate the total contribution margin:</u>

Total contribution margin= sales*contribution margin ratio

Total contribution margin= 103,000*0.85

Total contribution margin= $87,550

<u>Now, the net income:</u>

Net income= 87,550 - 63,000

Net income= $24,550

7 0
3 years ago
PA5.
daser333 [38]

Answer:

Using weighted average method

Statement of equivalent units

                                                   Material    Conversion

                                                    Units         Units

Units transferred out                   19,000       19,000

Add: Closing work-in-progress   <u> 6,000 </u>      <u> 1,800</u>

Average divisor                            <u> 25,000 </u>    <u>20,800</u>

                        Computation of cost per unit

                                                              Material   Conversion

                                                                   $               $

Cost of beginning work-in-progress   10,000      19,000

Cost added                                           <u> 50,000 </u>   <u>112,248</u>

Total cost                                               <u> 60,000 </u>   <u>131,248</u>

Material cost per unit = <u>$60,000</u>

                                         25,000 units

                                    = $2.40 per unit

Conversion cost per unit = <u>$131,248</u>

                                            20,800 units    

                                          = $6.31 per unit

 Value of units transferred out

  Material = 19,000 x $2.40  = $45,600

  Conversion = 19,000 x $6.31 = $119,890

  Value of closing work-in-progress

 Material = 6,000 x $2.40 = $14,400

  Conversion = 1,800 x $6.31 = 11,358

           

Explanation:

In this case, we need to prepare statement of equivalent units in order to ascertain the average divisor. The average divisor is the sum of units transferred out and closing work-in-progress. Then, we will obtain the total cost of material and conversion, which is the aggregate of cost of opening work-in-progress and cost of units added. We will also calculate the cost per unit, which is total cost of material and conversion divided  by average divisor. Finally, the units transferred  and ending work-in-progress will be valued at unit cost of material and conversion.                                

8 0
3 years ago
A student bought a used car for $10,000 and resold it one year later for $6,500. insurance, license, and operating costs for the
Illusion [34]
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3 years ago
Consider a corporate bond with a $1000 face value, 8% coupon with semiannual coupon payments, 7 years until maturity, and a YTM
serious [3.7K]

Answer:

$961.42

Explanation:

firstly, we calculate the clean clean price below:

FV= 1,000

PMT= 40 (80 / 2)

I= 4.5 (9 / 2)

N= 14 (7 × 2)

Thus, PV= 948.89

Accrued Interest = coupon × (days since last payment/days in current coupon period)= 40 × (57 / 182) = 12.53

conclusively, dirty price = 948.89 + 12.53 = 961.42

3 0
3 years ago
Your bank card has an APR of 18% and there is a 2% fee for cash advances. The bank starts charging interest on cash advances imm
Marina86 [1]

Answer:

$42

Explanation:

APR = 18% , month rate = 18%/12 = 1.5%

Fee for cash advance = 2%

Cash advance of the first day of month = $1,200

Finance charge = Cash advance * (Monthly rate + Advance cash fee)

Finance charge = $1,200*1.5% + $1,200*2%

Finance charge = $18 + $24

Finance charge = $42

So, the approximate total finance charge i will pay on this cash advance for the month is $42

4 0
3 years ago
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