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3 years ago

Suppose a company earns a profit this year and has a dividend payout ratio of one half. What does this mean?

Business

1 answer:

algol [13]3 years ago

7 0

Answer:

Explanation:

The dividend payout ratio is the ratio of dividends paid to shareholders in proportion to net income

Payout ratio = dividends / net income

If dividend payout ratio of one half, it means that only half of net income is paid as dividends

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An investment counselor calls with a hot stock tip. He believes that if the economy remains strong, the investment will result

liubo4ka [24]

Answer:

$6,000

Explanation:

The computation of the expected profit from this investment is shown below:

= Strong profit × Strong percentage + Moderate profit × moderate percentage - recession losses × recession percentage

= $60,000 × 20% + $10,000 × 60% - $60,000 × 20%

= $12,000 + $6,000 - $12,000

= $6,000

By adding the three situations we can get the expected profit from this investment

3 0

3 years ago

Forecasted depreciation expense, commonly estimated as: [(Current year depreciation expense / Prior year PPE, net) x Current yea

Radda [10]

Answer: True

Explanation:

The Statement of Cash flows is prepared to show the cash transactions of a company and only cash. The effect of anything non cash is not shown.

Depreciation is a non-cash expense which means that it reduces the net income without actually reducing the cash to the company. It would therefore be added back to the cash balance of the company so as to reflect that it did not reduce cash. The addition will be in the operating activities of the Statement of Cashflows.

8 0

2 years ago

General Forge and Foundry Company has a quick ratio of 2.00; $38,250 in cash; $21,250 in accounts receivable; some inventory; to

Vlada [557]

Answer:

The answer is General Forge and Foundry Company selling and replacing its inventory 2.55 times per year on average.

Explanation:

We have:

The company cost of good sold = Sales x 65% = 100,000 x 65% = $65,000

The company inventory = Total current asset - Cash - Account Receivable = 85,000 - 38,250 - 21,250 = $25,500

=> Inventory turn over ratio = Cost of good sold / Inventory = 65,000/25,500 = 2.55 times or the company is selling and replacing its inventory 2.55 times per year.

So, the answer is 2.55 times.

4 0

3 years ago

Double-declining balance On January 1, 2021, the Excel Delivery Company purchased a delivery van for $51,000. At the end of its

agasfer [191]

Answer:

$18,480

Explanation:

Cost of van = $51,000

Useful life = 5 years

Salvage value = $4,800

Using the straight line, Annual depreciation

= (51000 - 4800)/5

= $9,240

Using the Double-declining balance method,

Annual depreciation = 2 × 9,240

= $18,480

3 0

2 years ago

The following data is available for Sampson Corporation. Sampson Corporation Accounts Item Amount Net income $200,000 Depreciati

frosja888 [35]

Answer:

cash flow provided by operation 260,000

Explanation:

net income 200,000

adjustment for non-monetary terms: (A)

depreciation expense 60,000

loss on sale of land 15,000

adjusted net income 275,000

Change in working capital:

decrease in AR 30,000

Decrease in AP (45,000) (B)

net change in WC: (15,000) (C)

cash flow provided by operation 260,000

(A) we must focus on cahs movement so the depreciation and loss on sale which are non-mentary term. This are not related to cash

(B) the decrease in account receivable means we colelct from our customer more.

4 0

3 years ago