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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:

The missing data of this question is reproduced as follows;

Materials Used           128,900

Depreciation on plant 63,400

Property taxes on store  8,280

Labor cost of assembly workers 114,800

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Advertising expense          55,800

Property taxes on plant          23,100

Delivery expense                 24,800

Sales commission                    43,600

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Cost of Goods Manufactured  

Materials Used           128,900

Depreciation on plant 63,400

Property taxes on plant   23,100

Labor cost of assembly workers 114,800

Factory supplies used           32,100

WIP Beginning                        14,200

Less;WIP closing                     (16,900)

Cost of Goods Manufactured 359,600

Cost of Goods Sold

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Cost of goods manufactured  359,600

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3 years ago
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Answer:

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Explanation:

According to the scenario, computation of the given data are as follow:-

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1            $1,500                            (1.09)^3 = 1.295029        $1,942.54

2             $3,000                    (1.09)^2 = 1.1881                 $3,564.3

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