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lapo4ka [179]
3 years ago
6

Lena Company has provided the following data (gnore income taxes); 2016 revenues were $77,000. 2016 expenses were $48,600. Divid

ends declared and paid during 2016 totaled $7,700. Total assets at December 31, 2016 were $185,000. Total liabilities at December 31, 2016 were $105,000. Common stock at December 31, 2016 was $27,000. Which of the following is correct? a. 2016 net income was $20,700 b. Retained earnings at December 31, 2016 were $20.700. c. Total stockholders' equity at December 31, 2016 was $244.000. d. Retained earnings at December 31, 2016 were $53,000.
Business
1 answer:
Ilya [14]3 years ago
5 0

Answer:

Option (b) is correct.

Explanation:

(a) Net Income:

= Revenues - Expenses

= $77,000 - $48,600

= $ 28,400

(b) Retained earnings :

= Net Income - Dividend

= $ 28,400 - $7,700

= $20,700

(c) Stockholders' Equity:

= Total assets - Total Liabilities

= 185,000 - $105,000

= $80,000

Therefore, the retained earnings at December 31, 2016 were $20,700.

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6 0
3 years ago
XYZ Company has expected earnings of $3.00 for next year and usually retains 40 percent for future growth. Its dividends are exp
Verizon [17]

Answer:

Price of stock  = $40

Explanation:

According to the dividend growth model, the price of a stock is the present value of expected dividend discounted at the required rate of return.

This is done as follows:

Price of a stock = D×(1+r)/(r-g)

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6 0
3 years ago
TwitterMe, Inc., is a new company and currently has negative earnings. The company’s sales are $2.1 million and there are 130,00
Paladinen [302]

Answer:

a. $69.46

b. 58.15

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b. PS Ratio is 3.6

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7 0
2 years ago
Government is lobbied to institute price controls because: Multiple Choice
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Answer:

people care more about their own surplus than they do about total surplus. 

Explanation:

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A price ceiling is when the government or an agency of the government sets the maximum price for a good or service. It is usually set below equilibrium price.

Price ceiling increase consumer surplus and reduce producer surplus.

A price floor is when the government or an agency of the government sets the least price a good or service can be sold. It is usually set above equilibrium price.

Price floor increases producer surplus and reduces consumer surplus.

Producers would be advocating for a price floor because it increases their surplus, while, consumers would advocate for a price ceiling.

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Producer surplus is the difference between the price of a product and the least price the seller is willing to sell the product.

I hope my answer helps you

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3 years ago
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