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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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The following is a partial year-end adjusted trial balance. Account Title Debits Credits Sales revenue $ 460,000 Loss on sale of

dalvyx [7]

Answer:

a) Operating Income = $73,000

b) Net income before income tax = $25,500

Explanation:

First part of the question is to determine the operating income or loss of the business

It is calculated as follows

Particulars Amount

Sales Revenue $460,000

Subtract: Cost of goods sold ($240,000)

General and Administrative exp. ($56,000)

Restructuring Costs ($58,000)

Selling Expenses ($33,000)

Operating Income $73,000

Second part is to determine the income or loss before income taxes

Particulars Amount

Operating Income $73,000

Add: Interest Revenue $6,500

Deduct:Loss on sales of investment ($54,000)

Income before Income Tax $25,500

Finally, the Net Income or loss after Income tax

$25,500 x .25 = $6,375

7 0

2 years ago

Inventory records for Marvin Company revealed the following: Date Num of units unit cost Mar. 1 Beginning Inventory 1000 7.20 Ma

swat32

Answer:

Ending inventory= $5,040

Explanation:

Giving the following information:

Beginning Inventory= 1000 units for $7.20

Mar. 10: Purchase= 600 units for $7.25

Mar. 16: Purchase= 800 units for $7.30

Mar. 23: Purchase= 600 units for $7.35

Marvin sold 2,300 units.

Under the LIFO inventory method, the ending inventory cost is calculated using the first units incorporated to inventory.

Ending inventory in units= total units - units sold

Ending inventory in units= 3,000 - 2,300= 700 units

Ending inventory= 700*7.2= $5,040

8 0

3 years ago

Radford Inc. manufactures a sugar product by a continuous process, involving three production departments-Refining, Sifting, and

Leni [432]

Answer: Please find answers in explanation column

Explanation:

To record flow of cost of raw materials

Account Debit Credit

1) Work in process-Refining department $385,000

Raw Materials $385,000

To record flow of labour cost

Account Debit Credit

2) Work in process-Refining department $143,000

Wages payable $143,000

To record applied factory overhead

Account Debit Credit

3) Work in process-Refining department $99,000

factory overhead-refining department $99,000

Entry to record the transfer of production costs to the second department, Sifting.

Account Debit Credit

4) Work in process-Sifting department $626,800

Work in process-Refining department $626,800

calculation

Beginning work in process + raw material + wages payable + factory overhead - ending work in process

$29,600 + $385,000+ $143,000 +$99,000 - $29,800 =$626,800

6 0

3 years ago

The __________ is a listing of all the balance sheet and income-related accounts

fenix001 [56]

<span>Answer : Chart of accounts Explanation: A chart of accounts (COA) is a created list of the accounts used by an organization to define each class of items for which money or the equivalent is spent or received. It is used to organize the finances of the entity and to segregate expenditures, revenue, assets and liabilities in order to give interested parties a better understanding of the financial health of the entity.</span>

8 0

3 years ago

The following data relate to direct labor costs for the current period:

mr Goodwill [35]

Answer:$2,125 unfavorable

Explanation:

Given

Standard costs 9,000 hours at $5.50

Actual costs 8,500 hours at $5.75

we have two formulas to calculate for direct labor rate variance is:

1ST ----Direct Labor rate variance = (Actual Rate- Standard Rate ) x Actual hour

=( $5.75 -$5.50) x 8,500 = $2,125 unfavorable

2ND----Direct Labor Rate Variance=Actual Direct Labor Cost Incurred - Standard Direct Labor Cost Based on Actual Hours

=Actual Hours x Actual Rate -Actual Hours x Standard Rate

= ($5.75 x 8,500 hours)-($5.50 x 8,500 hours)

$48,875 - $46,750 = $2,125 unfavorable

when the actual rate is higher than the standard rate, the Direct Labor Rate Variance is unfavorable and if the actual rate is lower than standard rate, the variance is favorable.

3 0

3 years ago