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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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San Lorenzo General Store uses a periodic inventory system and the retail inventory method to estimate ending inventory and cost

muminat

Answer:

The average cost of ending inventory is $37,259 and cost of goods sold for october is 24,166

Explanation:

In order to calculate the average cost of ending inventory, we would have to calculate first the cost to retail ratio with the following formula:

cost to retail ratio=Total cost/Total retail

According to the given data, the total cost=$61,425, and the total retail= $87,100, Hence:

cost to retail ratio=$61,425/$87,100= 70.5%

Also, we have to calculate the ending inventory at retail=$87,100+$1,700-$1,050-$37,00=$52,850

Therefore, the average cost of ending inventory= $52,850×70.5%

=$37,259

To calculate the cost of goods sold for october we would have to use the following formula:

cost of goods sold=Beginning inventory+purchases-ending inventory

=$40,000+$21,425-$37,259

=$24,166

6 0

3 years ago

Concord Company purchased equipment for $25200 on December 1. It is estimated that annual depreciation on the equipment will be

Ray Of Light [21]

Answer:

Debit Depreciation Expense, $525;

Credit Accumulated Depreciation, $525.

Explanation:

Based on the information given in a situation where the financial statements are to be prepared on December 31, which means that the company should make the following adjusting entry:

Debit Depreciation Expense, $525

Credit Accumulated Depreciation, $525

Calculated as:

Debit depreciation expense $6,300/12

Debit depreciation expense=$525

7 0

2 years ago

Carter Corporation made sales of $900 million during 2016. Of this amount, Carter collected cash for $871 million. The company's

CaHeK987 [17]

Answer: (a) $295 million

(b) $326 million

Explanation:

Given that,

Sales = $900 million during 2016

Cash = $871 million

Cost of goods sold = $280 million

Expenses for the year totaled = $325 million

Paid for Inventory = $375 million

Paid for everything else = $285 million

Beginning cash = $115 million

(a) Net Income = Sales - Cost of goods sold - Expenses for the year totaled

= $900 - $280 - $325

= $295 million

(b) Carter's cash balance at the end of 2016:

= Cash + Beginning cash - Paid for Inventory - Paid for everything else

= $871 + $115 - $375 - $285

= $326 million

4 0

2 years ago

Identify an expansionary fiscal policy. increasing personal taxes increasing government spending buying government securities in

Greeley [361]

An example of an expansionary fiscal policy is INCREASING GOVERNMENT SPENDING. An expansionary fiscal policy refers to a policy that is used to increase the money supply in an economy. Expansionary fiscal policy come in form of tax cuts, transfer payments, increased government spending and rebates.

6 0

2 years ago

Identify which of the factors below are better short-range predictors and which are better long-range predictors of movements in

alina1380 [7]

Answer:

Short range predictors:

c. Nominal interest rate differential

d. Psychological effects

e. Investor expectations

f. Bandwagon effect

Long range predictors:

a. Relative monetary growth

b. Relative inflation rates

Explanation:

Nominal rate, the real rate, and inflation. long term predictors of an economic theory in which a relationship between inflation, nominal interest rate and real interest rate is identified. It defines that real interest rate is equal to inflation minus nominal interest rate.

Bandwagon effect is a short range predictor because it is effect of uptake when people follow others. They take decisions what other do and its their belief that other people have taken the right decision so we too. This is just a short term hop based on beliefs regardless of any underlying evidence.

8 0

3 years ago