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Maslowich
3 years ago
8

Redding Industrial Supply had common stock of $6,800 and retained earnings of $4,925 at the beginning of the year. At the end of

the year, the common stock balance is $7,000 and the retained earnings account balance is $5,498. The net income for the year is $938. What is the retention ratio?
Business
1 answer:
White raven [17]3 years ago
4 0

Answer:

61.09 %

Explanation:

For computing the retention ratio we need to do the following calculations

Beginning Retained earnings = $4,925

And,

Net Income = $938

So, before dividend Retained earnings is

= $4,925 + $938

= $5,863

Now the total amount paid is

= before dividend Retained earnings - ending retained earnings

= $5,863 - $5,498

= $365

Now

The Dividend payout ratio is

= Dividend paid ÷ Net Income

= $365 ÷ $938

= 0.389126

And, finally

Retention ratio is

= 1 - Dividend payout ratio

= 1 - 0.389126

= 0.610874 or 61.09 %

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Answer:

From all indications,the two rents received have been posted wrongly, I want to believe that you are required to post the adjusting entries,hence my answer below:

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Explanation:

The first $9000 was posted to deferred revenue,whereas only two months should have been deferred and December rent recognized as rent.

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Answer and Explanation:

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1. Average cost periodic

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Dollars 69,000

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Summary of Average Cost Perpetual

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Jan 20 4,000units = 37,250

Total 9,000units = $78,500

Summary of Results

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FIFO, Periodic $ 75,000 $78,000

LIFO, Periodic$87,000 $66,000

LIFO, Perpetual $82,000 $71,000

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