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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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Higher Creativity in Decision Making due to diversity and understanding of the environment in which it operates.

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7 0
3 years ago
How should factory overhead variances be treated in a journal entry to apply factory overhead?
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Factory overhead variances should be broken out into their individual components and reported separately as either debits or credits to their individual variance accounts should factory overhead variances be treated in a journal entry to apply factory overhead

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5 0
2 years ago
Which of the following occupations is among the 10 projected most rapidly declining U.S. occupations in terms of percentage decr
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Answer:

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Explanation:

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3 years ago
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2 years ago
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