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balu736 [363]
3 years ago
6

Temple Square Inc. reported that its retained earnings for 2005 were $490,000. In its 2006 financial statements, it reported $60

,000 of net income, and it ended 2006 with $510,000 of retained earnings. How much were paid as dividends to shareholders during 2006
Business
1 answer:
V125BC [204]3 years ago
3 0

Answer:

Dividend = $40,000

Explanation:

Given:

Temple Square Inc. reported that its retained earnings for 2005 were $490,000.

In its 2006 financial statements, it reported $60,000 of net income,

It ended 2006 with $510,000 of retained earnings. ( Ending retained earnings )

Question asked:

How much were paid as dividends to shareholders during 2006 ?

Solution:

Here given that Temple Square Inc. reported that its retained earnings for 2005 were $490,000, means this amount will carry forward and will be considered as Beginning retained earnings for 2006.

Now, we have to find, how much dividends were paid to shareholders during 2006.

As we know:

Ending retained earnings = Beginning retained earnings + Net income - Dividend

510,000 = 490,000 + 60,000 - Dividend

510,000 = 550,000 -  Dividend

Subtracting both sides by 550,000

- 40,000 = -  Dividend

Adding both sides by minus ( - )

Dividend = $40,000

Therefore, Temple Square Inc. paid $40,000 to shareholders during 2006.

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The manager of the manufacturing unit of a company is responsible for the costs of the manufacturing unit. The president is in t
trasher [3.6K]

Answer:

AC Problems : Incurred even at 0 output level, much varying & deviant from cash flows

VC Problems : Doesn't include fixed cost, incomplete expenditure, incomplete financial (accounting) statements.

Explanation:

Average Cost is the cost per unit off output.

Problems with AC as a performance measure :

  • It includes all (fixed & variable cost) average. So, including fixed cost, it is not zero even at zero output level.
  • It's variance analysis during production & cost phases is very complicated.
  • It's result are deviant as evident from cash flows.

Variable Cost is the cost incurred on variable factors of production.

Problems with VC as a performance measure :

  • It doesn't include fixed cost. So, it is not a correct measure of complete total expenditure.
  • Fixed costs are huge. No financial inclusion of them makes accounting information unreliable (for legal purposes)
6 0
3 years ago
Erie company has 500 units of capacity for their traditional product, Emu, and buys one point of automation. If Erie company’s c
11111nata11111 [884]

Answer: 2 years

Explanation:

The payback period is the amount of time that is needed for the required cash inflow of a project to offset the initial cash outflow that the business offsets. The payback period is when the initial outlay of an investment is recovered. There are two different methods used to calculate payback period. We have the average method and the subtraction method.

In the above question, the payback period is solved as follows:

Labour cost decreases by 10% for each unit.

Therefore,

= $10 × 10%

= $10 × 0.1

= $1 per unit.

In order to recover $2000, the business needs to sell the following;

= 2000/1

= 2000units.

If Eric sells 1000 units per year of Emu, it will take:

2000/1000= 2years

In conclusion, the payback period of the investment is 2 years.

8 0
3 years ago
Potential GDP refers to the level of ___________ Select one: a. Nominal GDP in the long run. b. Nominal GDP in the short run. c.
Aloiza [94]

Answer:

c. Real GDP in long run

Explanation:

Potential GDP refers to the level of real GDP in long run.

8 0
2 years ago
Read 2 more answers
Big Chill, Inc. sells portable dehumidifier units at the current price of $184. Unit variable costs are $85. Fixed costs, made u
Likurg_2 [28]

Answer:

$6,014,384

Explanation:

Break even point is the level at which a firm makes neither profit nor a loss. This is the point where Profit = $0.

Break even units = Fixed Costs ÷ Contribution per unit

therefore,

Break even units = $3,236,000 ÷ ($184 x  $85)

                              = 32,687 units

thus,

Breakeven Sales = 32,687 units x $184 =  $6,014,384

3 0
2 years ago
Some risks associated with investing in real estate are?
kirill [66]

An investor must see what circumstances while investing in a real estate area. So the investor must be careful while investing.

One can loose tenant and his invested capital, tenant capital and fixed turnovers would be largely affected. increased property taxes and increased cost of operations a real estate investor is exposed to all these.

Some other risks associated with taking huge debts for investing in a property, liquidity risks , management risks, legislative risks, and environmental risks with several legal risks. It also include sometimes bad locations, negative cash flows etc.

To learn more about real estate here,

brainly.com/question/10336196

#SPJ4

4 0
2 years ago
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