Answer:
A.The impact on the balance sheet after the payment of the dividends is a reduction in current asset-cash by $8580 as well as a drop in equity-specifically retained earnings by the same amount.
B.Total assets (book and market values) will decrease by $8580 and equity and liabilities on the other hand will also reduce by $8580.
A.The accounting entries in respect of the dividend payment will be :
Debit Retained earnings $8580
Credit Cash $8580
Explanation:
The dividends of $1.43 gives $8580 in total i.e $1.43*6000 shares
The impact of the dividend payment will be in terms of reduction in cash available for daily operations and reduction in funds attributable to shareholders.
The answer is true because empowerment is a positive thing which leads to a positive outcome.
Answer:
Option (d) $5,000,000
Explanation:
Data provided in the question:
Reported revenues = $50,000,000
Operating expenses = $47,000,000
Net income = $3,000,000
Payroll costs included in the operating expenses = $15,000,000
Combined identifiable assets of all industry segments = $40,000,000
Now,
If the revenue derived from sales to any single customer is 10% or more of the revenue of an enterprise then the amount of revenue from each customer shall be disclosed.
Therefore,
Grum should disclose major customer data if
sales to any single customer amount at least = 10% of Reported revenues
= 10% of $50,000,000
= $5,000,000
Option (d) $5,000,000
Answer:
Return on equity.
Explanation:
Financial statements can be defined as a document used for the formal communication or disclosure of financial information and statements to present and potential users such as investors and creditors. These includes balance sheet, statement of retained earnings and income statement.
The financial ratio that measures the accounting profit per dollar of book equity is referred to as the return on equity. It is calculated by dividing the net income with the shareholder's equity at a specific period of time
Answer:
The answer is: Rose will be taxed as receiving a $15,000 dividend distribution.
Explanation:
Since Parent Corporation owns 70% of Child Corporation, for tax purposes they are considered as one single firm. Rose is the main stockholder of Parent Co. so for tax purposes she is also a stockholder in Child Co. When Child Co. gives her $15,000 in exchange for Parent Co. stock, this would be considered as a dividend distribution rather a stock sale.
