The statement of owner's equity—also called the statement of retained earnings—shows the change in retained earnings between the start and end of a period (e.g., a month or a year). The record reflects a company's solvency and financial position.
<h3>What are the three financial statements?</h3>
The earnings report , record , and statement of money flows are required financial statements. These three statements are informative tools that traders can use to research a company's financial strength and provide a quick picture of a company's financial health and underlying value.
What is the statement of retained earnings ?
Reports the way that net and the distribution of dividends affected the financial position of the company during the accounting period. the sum of the share of net income which is not paid to the shareholder as dividend. the aim of the retained earnings is reinvestment
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Answer:
a) diluted earnings per share = 0
Explanation:
Diluted earnings per share (DEPS) is a recalculation of the basic EPS. The difference between DEPS and EPS is, EPS represents the current position of earnings per share. No changes in number shares and/or earnings in the future are incorporated in the basic EPS.
Whereas DEPS is a representation of not only the current position of earnings and shares but also includes the commitments an entity has already made whose occurrence may result in an increase/decrease in the amount of earnings and/or number of shares. For example, in the question Culver Company has issued 10-year convertible bonds which right now have no impact on basic EPS but if in the future these bond holders exercise their right of conversion, this would result in an increase in number of ordinary shares hence decreasing/diluting the basic EPS. The entities use DEPS to show shareholders the impact of such commitments on the basic EPS to improve their decision making.
So in 2017 none of the bonds were converted therefore no diluted earnings per share is calculated in 2017.
If all of the bonds were converted in 2017 the DEPS would have been calculated as follows:
The formula for calculating DEPS is as follows;
DEPS = (Net income + interest savings) ÷ number of ordinary shares + increase in ordinary shares as a result of conversion.
Tax savings as a result of conversion=$128400 ($2140000×6%). Because if bond holders convert into ordinary shares then Culver company will not have to pay them interest and hence the amount of interest is saved.
Increase in ordinary shares upon conversion= 29960 ($2140000÷$1000=2140 bonds. Each bond is convertible into 14 shares therefore, 2140×14=29960).
Now Lets calculate DEPS as follows;
DEPS = ($296000+$128400) ÷ 91000+29960
DEPS =$424400÷120960
DEPS = $3.5
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Answer:
c. 25 percent.
Explanation:
The computation of the reserve requirement percentage is shown below:
Given that
Deposits made = $8,000
Loans = $6,000
So the required reserve is
= deposits made - loans
= $8,000 - $6,000
= $2,000
Now the required reserve is
= $2,000 ÷ $8,000
= 25%
Hence, the correct option is c. 25 percent
We simply applied the above formula so that the correct value could come
And, the same is to be considered
Answer:
which of the following but where are the following broo
