1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Citrus2011 [14]
3 years ago
6

Santiago Systems Income Statement For the Year Ended December 31, 20X2 Amount Percent Net sales $5,345,000 100.0% Less: Cost of

goods sold (3,474,250) 65.0 Gross margin $1,870,750 35.0 Less: Operating expenses (1,140,300) 21.3 Operating income $730,450 13.7 Less: Interest expense (27,000) 0.5 Income before taxes $703,450 13.2 Less: Income taxes (40%)* (281,380) 5.3 Net income $422,070 7.9 * Includes both state and federal taxes. Santiago Systems Statement of Retained Earnings For the Year Ended December 31, 20X2 Balance, beginning of period $1,205,500 Net income 422,070 Total $1,627,570 Preferred dividends (40,000) Dividends to common stockholders (150,000) Balance, end of period $1,437,570 Santiago Systems Comparative Balance Sheets At December 31, 20X1 and 20X2 20X1 20X2 Assets Current assets: Cash $1,900,000 $2,100,000 Marketable securities 350,000 400,000 Accounts receivable (net) 625,000 675,000 Inventories 230,000 240,000 Other 50,000 50,000 Total current assets $3,155,000 $3,465,000 Property and equipment: Land $900,000 $900,000 Building and equipment (net) 1,240,800 1,192,800 Total long-term assets $2,140,800 $2,092,800 Total assets $5,295,800 $5,557,800 Liabilities and Stockholders' Equity Current liabilities: Notes payable, short term $247,300 $256,230 Accounts payable 240,000 250,000 Current maturity of long-term debt 3,000 4,000 Accrued payables 150,000 160,000 Total current liabilities $640,300 $670,230 Long-term liabilities: Bonds payable, 9% 300,000 300,000 Total liabilities $940,300 $970,230 Stockholders' equity: Preferred stock, $25 par, 8% $500,000 $500,000 Common stock, $1.00 par 150,000 150,000 Additional paid-in capital* 2,500,000 2,500,000 Retained earnings 1,205,500 1,437,570 Total stockholders' equity $4,355,500 $4,587,570 Total liabilities and stockholders' equity $5,295,800 $5,557,800 * For common stock only. Also, assume that the market price per common share is $20. Required:____________.
1. Compute the dividends per share. $
2. Compute the dividend yield. %
3. Compute the dividend payout ratio. Round your answer to two decimal places. %
Business
1 answer:
solmaris [256]3 years ago
3 0

Answer:

1)Dividend per share = 1

2)Dividend yield = 5%

3)Dividend payout ratio = 0.39

Explanation:

As per the data given in the question,

Net sale = $5,345,000

Cost of goods sold = $3,474,250

Gross margin = $5,345,000 - $3,474,250 = $1,870,750

Operating expenses = $1,140,300

Operating income = $1,870,750 - $1,140,300 = $730,450

Interest expenses = $27,000

Income before taxes = $730,450 - $27,000 = $703,450

Income tax(40%) = $281,380

Net in come = $422,070

Preference of dividend = $40,000

Earnings available to common stockholders = $422,070 - $40,000 =$382,070

Common stock = $150,000

Earning per share = $382,070÷$150,000 = 2.55

Dividend to common stockholders = $150,000

Dividend per share = $150,000÷$150,000 = 1

Market price of common share = $20

Dividend yield = (Dividend per share×100÷market price of common share) = 5%

Dividend payout ratio = Dividend per share÷earning per share =1÷2.55 = 0.39

You might be interested in
Fill in the correct words for the skills that Sharia used to make a career plan.
gogolik [260]
#1 goal-setting #2 decision-making
8 0
3 years ago
Read 2 more answers
Which reason for trade barriers is being used when the us refuses to trade with another country because they use child labor to
Kruka [31]

The reason why trade barriers is being used when the us refuses to trade with another country is: Upholding standards.

<h3>What is upholding standard?</h3>

Upholding standard is the process were a country tend to follow and maintain their set standard without deviating from it.

United states refuse to trade with others country because  other country were using children as a laborer to produce goods and United state is against it leading to what is called trade barrier.

Inconclusion the reason why trade barriers is being used when the us refuses to trade with another country is: Upholding standards.

Learn more about upholding standard here:brainly.com/question/6868717

4 0
2 years ago
During 2020, Flint Corporation reported net sales of $5,490,000 and net income of $1,320,000. Its balance sheet reported average
koban [17]

Answer:

The asset turnover is 3.66 times

Explanation:

Asset Turnover is the efficiency rate of the assets of the business to generate revenue for the business. It shows how efficiently the assets of the business are used to generate revenue for the business.

Formula for Asset turnover is as follow

Asset Turnover = Net sales / Average total assets

Asset Turnover = $5,490,000 / $1,500,000

Asset Turnover = 3.66 times

It means that the sale for the period is generated to 3.66 times of average total asset of the business.

5 0
2 years ago
Business Law - Case: Contract Law
Brilliant_brown [7]

Answer:

The issue is whether Joe is liable to pay for Bob to Avarice Bank or not.

Joe should prevail.

Explanation:

The original contract is between bank and Bob and in that contract Joe is not involved. Secondly payment on someone' behalf always has to be a written contract.

According to UCC, suretyships have to be written for them to be enforceable. This is mentioned in Statute of Frauds. It clearly states that any gurantee by thrid party for payment of debts has to be in writing.

3 0
3 years ago
Who can cheer me up i have seizures
AlekseyPX

Answer:

I got a joke for you :)

Why do we tell actors to “break a leg?”

Because every play has a cast.

3 0
2 years ago
Read 2 more answers
Other questions:
  • A sporting goods store discounts every item in its store based on the original price of the item. An item is discounted: 10% if
    7·1 answer
  • The black box warning that must be included on all antidepressants notes the increased risk of ____.
    15·1 answer
  • When not responding to e-mails, the lawyer on call is encouraged to actively pursue cases that potentially could lead to large s
    8·1 answer
  • Merticao, a French textile company, supplied most of its products to its primary market in Hestonia, a North American nation. Ho
    12·1 answer
  • ___________ is the ability of a product to satisfy a customer. A. Economic utility B. Value C. Purchasing power D. Outsourcing
    5·1 answer
  • An unexpected increase in aggregate demand typically causes
    14·1 answer
  • ranite Slab LLC was recently formed with the following members: Capital/ Name Tax Year-End Profits % Nelson Black December 31 22
    9·1 answer
  • THE IMPORTANCE OF INFORMATION IN MARKETING
    7·2 answers
  • Whirly Corporation’s contribution format income statement for the most recent month is shown below: Total Per Unit Sales (7,600
    11·1 answer
  • The comparative balance sheets for Crane Company show these changes in noncash current asset accounts: accounts receivable decre
    5·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!