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Katarina [22]
3 years ago
12

After earning $50 million in net income, Marshall Manufacturing distributed $15 million in dividends to their stockholders. Mars

hall's board of directors decided to invest the remaining $35 million back into the business. This $35 million reinvestment of profits represents:
a. a trust fund earningb. retained earningsc. preferred capitald. mutual funds
Business
1 answer:
slavikrds [6]3 years ago
6 0

Answer:

The correct answer is letter "B": retained earnings.

Explanation:

Retained earnings are the portion of the companies net earnings that it does not payout to shareholders as dividends. The company keeps this money and reinvests it in the business or uses it to pay out part of the company's debt. The retained earnings are reported in the Balance Sheet in the section of shareholder's equity. The formula to calculate the retained earnings is:

RE = Net Income (or Loss) − C − S

where:

  • C=Cash dividends
  • S=Stock dividends
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M Corporation has provided the following data concerning an investment project that it is considering: Initial investment$220,00
weeeeeb [17]

Answer:

$197,923.86

Explanation:

5 0
3 years ago
Cotton Brokers, Inc., enters into a contract to sell denim clothing to Delite Natural Fashion store, which in turn sells a pair
sergiy2304 [10]

Answer:

B

Explanation:

In comparison to standards that apply to consumers, the UCC imposes on merchants Special business standards.

3 0
3 years ago
Inflation is 14 percent. Debt is $4 trillion. The nominal deficit is $360 billion. What is the real deficit or surplus
DiKsa [7]

Answer:

Real Surplus is $200 billion

Explanation:

Inflation = 14%

Debt = $4 trillion = $4,000 billion

Nominal deficit = $360 billion

Real Deficit = Nominal deficit - (Inflation*Debt)

= $360 - 14% * 4,000

= $360 - 560

= -$200

Hence, the answer is Real Surplus of $200 billion

8 0
3 years ago
tAn employee has a claim on the cash flows of Martin’s Machines. This claim is defined as a claim by one of the firm's:
kap26 [50]

Complete Question:

An employee has a claim on the cash flows of Martin's Machines. This claim is defined as a claim by one of the firm's:

Group of answer choices

A. residual owners.

B. shareholders.

C. financiers.

D. provisional partners.

E. stakeholders.

Answer:

E. stakeholders.

Explanation:

An employee has a claim on the cash flows of Martin's Machines. This claim is defined as a claim by one of the firm's stakeholders.

A stakeholder can be defined as an individual or group of people that has an interest or concern in a business firm and usually either affect or be affected by the business.

Generally, the key stakeholders of business firm are its employees, public groups, suppliers, investors, creditors, consumers or customers. The employees working in an organization are key internal stakeholders because they play a significant role, function and have both financial and time-based investments in the operations of the business.

6 0
3 years ago
"Addison Corp. is considering the purchase of a new piece of equipment. The equipment will have an initial cost of $522,000, a 3
Vlad [161]

Answer:

$31,320.00

Explanation:

The formula for accounting rate of return is the annual net cash flow divided by the initial investment.

If the initial investment was $522,000 and the accounting rate of return is computed to be 6% per year, hence the annual increase in cash flow accruing from the investment can be calculated by changing the subject of the formula.

ARR=annual increase in cash flow/initial investment

ARR is 6%

initial investment is $522,000

annual increase in cash flow?

6%=annual increase in cash flow/$522,000

annual increase in cash flow=6%*$522,000= $31,320.00  

4 0
3 years ago
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