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3 years ago

If Newble paid dividends of $100 million in 2016 and made no stock issues, what must have been net income during the year?

Business

1 answer:

Arisa [49]3 years ago

8 0

Answer: $310 million

Explanation:

The net income is used to pay dividends as well as being added to equity at the end of the period. If no new stock was issued then the net income would be the increase in equity plus dividends.

Increase in Equity = Equity 2016 - Equity 2015

Equity 2016 = Total assets 2016 - total liabilities 2016

= ( 420 + 1,420) - ( 240 + 920)

= $680 million

Equity 2015 = Total assets 2015 - total liabilities 2015

= ( 310 + 1,200) - ( 210 + 830)

= $470 million

Increase in Equity = 680 - 470

= $210 million

Net Income = Increase in equity + dividends

= 210 + 100

= $310 million

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Answer:

$5,569,634

Explanation:

Current ratio = current assets = 2× $9,500,000= $19,000,000

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Average collection period (APC) = 45 days = account receivable × 365 days

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Answer:

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3 years ago

The government uses taxes and subsidies to guide consumption and production decisions.

aleksandrvk [35]

Answer: True

Explanation:

Tax is the amount of money that's paid by an individual or firm to the government. Subsidies are the funds or other forms of assistance that's given by the government to firms in order to help them increase their production and lower the prices of goods.

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2 years ago

A ________ is a contract that provides that a seller of a business or an employee will not engage in a similar business or occup

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The answer is non-compete agreement

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2 years ago

Statement 1: The onset of 5% inflation means that your receipt of a $100 interest payment allows you to purchase only $95 worth

Nimfa-mama [501]

Answer:

A. 1 and 4 are true

Explanation:

Statement 1: When inflation goes up the market prices of goods increase and reduces buying power of customer. So, if you get $100 even after 5% inflation, you would get $95 worth good.

Statement 2: It is commonly known as, the higher the risk the higher the gain. So, risk premium and risk exhibited by security is directly related with each other.

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3 years ago