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notsponge [240]
4 years ago
7

Typically, the statement of stockholders' equity starts with total stockholders’ equity at the beginning of the year, adds net i

ncome, subtracts dividends paid, and ends up with total stockholders’ equity at the end of the year. Over time, a profitable company will have earnings in excess of the dividends it pays out, and will result in a substantial amount of retained earnings shown on the balance sheet.True / False.
Business
1 answer:
Svetradugi [14.3K]4 years ago
5 0

Answer:

The correct answer is True.

Explanation:

Retained earnings are those net profits that the company decides not to distribute as dividends among its shareholders.

The retained earnings are dedicated to reinvestment in the form of equipment, research and development and other elements such as paying financial obligations. One of the purposes, in addition, is to preserve the liquidity of the company.

Many companies resort to retained earnings as a way to finance the company, as it is an effective way to avoid the outflow of money and have to resort to new obligations (that is, more indebtedness).

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If the inflation rate increases faster than their income, people will most likely
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3 years ago
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$5,000,000, 12% bonds for $5,325,000. The market rate of interest for these bonds is 10%. Interest is payable annually on Decemb
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Answer:

$307,500 .

Explanation:

Please see attachment

6 0
4 years ago
Wings Co. budgeted $555,600 manufacturing direct wages, 2,315 direct labor hours, and had the following manufacturing overhead:
Dahasolnce [82]

Answer:

the  overhead cost assigned to Job 971 is $1,020

Explanation:

The computation of the overhead cost assigned to Job 971 is shown below:

= Budgeted Machine overhead cost ÷ Number of set up

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= 34

Now the overhead cost assigned is

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3 0
3 years ago
The Tobler Company had budgeted production for the year as follows:
solong [7]

Answer:

The correct answer is C.

Explanation:

Giving the following information:

The Tobler Company had budgeted production for the year as follows:

Quarter 1 2 3 4

Production in units 10,000 9,000 13,000 11,000

4 pounds of raw materials are required for each unit produced. Raw materials on hand at the start of the year total 7,000 lbs. The raw materials inventory at the end of each quarter should equal 9% of the next quarter's production needs in materials.

Direct material 2nd quarter:

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Beginning inventory= (9,000*0.09)*4= 3,240lbs (-)

Total= 37,440 lbs

4 0
3 years ago
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