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GarryVolchara [31]
3 years ago
9

Skysong Corporation has retained earnings of $691,300 at January 1, 2020. Net income during 2020 was $1,552,100, and cash divide

nds declared and paid during 2020 totaled $82,000. Prepare a retained earnings statement for the year ended December 31, 2020. Assume an error was discovered: land costing $88,390 (net of tax) was charged to maintenance and repairs expense in 2019. (List items that increase retained earnings first.)
Business
1 answer:
just olya [345]3 years ago
4 0

Answer:

                               Skysong Corporation

                       Statement of Retained Earnings

Retained earnings balance January 1, 2020               $691,300

Add:

Adjustments to 2019 Income Statement                       $88,390

Net profits 2020                                                          $1,552,100

Less:

<u>Dividends declared and distributed                            ($82,000) </u>

Retained earnings balance December 31, 2020      $2,249,790

Since the land purchase was recorded as maintenance expense by error, the 2019 income statement must be adjusted by adding that amount.

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Overview of financial planning
VMariaS [17]

Answer:

1. Operating plan.

2. Operating plan.

3. Financial plan.

4. Dividend policy.

5. B and C.

Explanation:

1. Operating plan: provides detailed implementation guidance for a firm's operations, as well as a forecast of the company's expected future free cash flows.

2. Operating plan: provides the inputs necessary for a risk management evaluation using sensitivity analysis, scenario analysis, or simulations.

3. Financial plan: Is based on knowledge of the amount of funds necessary to compensate the firm's shareholders, and the mix of debt and equity capital used to finance the firm.

4. Dividend policy: sets forth specific targets for cash or share distributions to the firm's shareholders.

Capital structure: describes specific targets for the mix of debt and equity used to finance a firm.

Financial planning can be defined as the process of estimating the amount of capital required for the smooth operations of the business and determine how to achieve the firm's set goals and objectives.

Hence, the following statements are true about financial planning;

I. Once a firm's forecasted financial statements are prepared, the firm must determine how much capital it will need to support these plans.

II. Management must monitor operations after implementing a financial plan to detect deviations from the plan and adjust accordingly.

6 0
3 years ago
On July 1, 20x1, Fox Co. purchased as a held-to-maturity investment $5,000,000 of Owl, Inc.'s 8% bonds for $4,580,000, including
Dimas [21]

Answer:

The amount fox should report on Dec 31,20x1 = $4,556,500

Explanation:

The carrying amount of bonds = $4,580,000 - $50,000

The carrying amount of bonds = $4,530,000

Amortization of discount from july 1 to dec 31 (6 months):

Interest Revenue = $4,530,000* 10% * 6/12

Interest Revenue= $226500

Interest Receivable = $5,000,000 * 8% * 6/12

Interest Receivable = $200000

Discount amortized =Interest Revenue - Interest Receivable

Discount amortized = $226500 - $200000

Discount amortized = $26500

So:

The amount fox should report on Dec 31,20x1 = $4,530,000 + $26500

The amount fox should report on Dec 31,20x1 = $4,556,500

4 0
3 years ago
Monopolists want to protect their market position by – potential competitors. A common tactic is to lobby for –, such as –. Such
mixer [17]

Answer:

restricting the entry; trade restrictions; import tariffs; rent-seeking; monopoly

Explanation:

Monopolists want to maximize their profits by keeping the potential competitors out of the market. For restricting the entry of potential firms they adopt the practice of lobbying for trade restrictions which restrict entry. One such restriction is importing tariff which will reduce competition from foreign products. Such lobbying can be defined as a form of rent-seeking which means using political means to secure monopoly position.

8 0
3 years ago
¿Que es un mapa estratégico?
Anna007 [38]

Answer: Sí

Explanation: Sí

5 0
3 years ago
Farrow Co. expects to sell 150,000 units of its product in the next period with the following results. Sales (150,000 units) $ 2
BabaBlast [244]

Answer:

Accept

Explanation:

The computation of the combined total net income is shown below:

            Normal Volume          Additional Volume               Total

Sales    $2,250,000                  $180,000                           $2,430,000

                                                    (15,000 × $12)

Costs and expenses:    

Direct materials $300,000           $30,000                         $330,000

Direct labor  $600,000                   $60,000                         $660,000

Overhead     $150,000                    $22,500                          $172,500

                                                   ($150,000 × 15%)

Selling expenses $225,000                                            $225,000

Administrative expenses $385,500 $64,500                          $450,000

Total costs and expenses $1,660,500 $177,000          $1,837,500

Incremental income (loss) from new business $589,500 $3,000 $592,500  

Therefore, the company should accept the offer      

6 0
3 years ago
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