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]
2 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]2 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
On August 1, 2019, the accountant for Western Imports downloaded the company's July 31, 2019. Bank statement from the bank?s Web
Radda [10]

Answer:

Required 1.

<u>Bank Reconciliation Statement as at 31 July</u>

Balance at bank as per updated Cash Book           $28,192

Add Unpresented Cheques

Check 1429                                                 $1,248

Check 1430                                                    $140      $1,388

Less Lodgements not yet credited                             ($790)

Balance as per Bank Statement                              $28,790

Required 2.

Journal Entries :

J1

Cash $14,300 (debit)

Accounts Receivable : Foncier Ricard $14,300 (credit)

J2

Accounts Payable : Central Common $261 (debit)

Cash $261 (credit)

J3

Check 1425 $30 (debit)

Cash $30 (credit)

Explanation:

The first step is to update the Cash Book Bank Balance as follows :

<u>Debit :</u>

Balance as at July 31                                                    $14,183

Credit Transfer : Foncier Ricard                                 $14,300

Totals                                                                           $28,483

<u>Credit:</u>

Check 1425 understated ($99 - $69)                               $30

Direct Debit : Central Common                                       $261

Cash Book Updated Balance (Balancing figure)       $28,192

Totals                                                                           $28,483

Then prepare a Bank Reconciliation Statement as at 31 July :

<u>Bank Reconciliation Statement as at 31 July</u>

Balance at bank as per updated Cash Book           $28,192

Add Unpresented Cheques

Check 1429                                                 $1,248

Check 1430                                                    $140      $1,388

Less Lodgements not yet credited                             ($790)

Balance as per Bank Statement                              $28,790

Journal Entries :

J1

Cash $14,300 (debit)

Accounts Receivable : Foncier Ricard $14,300 (credit)

J2

Accounts Payable : Central Common $261 (debit)

Cash $261 (credit)

J3

Check 1425 $30 (debit)

Cash $30 (credit)

3 0
3 years ago
Karolina has been working in integrated marketing communications for High Flying Kites Company. She is very conscious of how muc
Anit [1.1K]

Answer:

Database Marketing

Explanation:

According to my research on the different marketing methods, I can say that based on the information provided within the question the best communication method for achieving her goals would be Database Marketing. This is because this type of marketing technique uses databases to choose the right individual market segments and delivering their marketing message through those channels with the people that are already part of those market segments.

I hope this answered your question. If you have any more questions feel free to ask away at Brainly.

3 0
3 years ago
Read 2 more answers
This woman was instrumental in giving important information to the confederacy just before the second battle of bull run. lottie
AlekseyPX
ROSE GREENHOW was instrumental in giving important information to the confederacy just before the second battle of bull run.

She was a socialite before the war. She became a Confederate spy during the American Civil War.
3 0
2 years ago
Read 2 more answers
If the ratio for unit cost to sales price for a product is 1:4, how much would the selling price be for a product if it has a un
Mkey [24]
Ratio and proportion is a useful method in determining a value using a known constant in ratio form. In this case, the ratio of cost to price is always 1/4. Hence, the solution goes as follows:

1/4 = 33.85/price
Price = 33.85*4
Price= $135.4 
6 0
3 years ago
Sweat equity, and other methods of reducing the initial cost of getting a company off the ground without resorting to amassing o
vovangra [49]

Answer:hes wrong i just failed a mf test cause of it the right answer is bootstrapping on oddy

Explanation:

3 0
2 years ago
Other questions:
  • Explain what is meant by an activity measure. Identify an appropriate activity measure for analyzing the cost structure of the b
    7·2 answers
  • Morrow Corp. has an EBIT of $925,000 per year that is expected to continue in perpetuity. The unlevered cost of equity for the c
    7·1 answer
  • When economists speak of scarcity, they are referring to the condition in which society is not employing all its resources in an
    5·1 answer
  • Gordon and lisa estimate that they will need $1,875,000 in 40 years for their retirement fund. if they can earn 8 percent annual
    13·1 answer
  • What drives american free enterprise? the desire for economic equality the need to own a home the need to make a living the desi
    10·2 answers
  • When no-par stock is issued, the entire proceeds are credited to Capital Stock and this amount is viewed as legal capital not su
    6·1 answer
  • 4. Which of the following is not a situation involving external shock?
    12·2 answers
  • What do you call a specific Market group that wants, and can afford, your product
    14·1 answer
  • Partial adjusted trial balance for Pina Colada Corp. at December 31, 2017, includes the following accounts: Retained Earnings $1
    11·1 answer
  • Keynesian theory is based on the concept that saving and consumption are influenced primarily by real current disposable income.
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!