1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Fittoniya [83]
3 years ago
6

2.A company began 2019 with retained earnings of $23.45 million. During the year, it paid four quarterly dividends of 0.25 per s

hare to common stockholders holding 1 million shares. Preferred stockholders, holding 0.5 million shares, were paid four quarterly dividends of 0.50 per share. The firm had a net profit after taxes of 2.18 million. What is the value of the retained earnings balance at the end of the year
Business
1 answer:
Naily [24]3 years ago
3 0

Answer: $23.63 million

Explanation:

First and foremost, we can calculate the quarterly common stockholder dividend which will be:

= $0.25 × 1 Million

= $0.25 million

Then, the annual dividend to the common stockholders will be:

= $0.25 million × 4

= $1 million

The quarterly preferred stockholder dividend will be calculated as:

= $0.50 × 0.50 Million

= $0.25 million

We would then multiply $0.25 million by 4 to get the annual dividend attributable to the preferred stockholders which will be:

= $0.25 million × 4

= $1 Million

Total Dividend would then be:

= Annual dividend to common stockholders + Annual dividend to preferred stockholder

= $1 Million + $1 Million

= $2 Million

The value of the retained earnings balance at the end of the year will then be:

= Retained Earnings at the beginning of the year + Net Income – Dividend

= $23.45 + $2.18 - $2.00

= $23.63 million

You might be interested in
Jasper Company has sales on account and for cash. Specifically, 70% of its sales are on account and 30% are for cash. Credit sal
kaheart [24]

Answer:

Jasper Company

Cash Receipts Budget for April, May, and June:

                                        April             May              June               Total

Cash Sales 30%         $157,500      $160,500      $168,000        $486,000

Credit Sales 70%         400,000       367,500        374,500         1,142,000

Total                           $557,500    $528,000     $542,500     $1,628,000

Explanation:

1. Cash Receipts Budget shows the estimated cash receipts from customers and other sources.

2. Calculations:

a) Cash Sales for April = 30% of April Sales = 30% * $525,000 = $157,500.  The difference of 70% is received in May.

b) Sales received on account for April = 100% of Accounts Receivable = $400,000.

c) Cash Sales for May = 30% of April Sales = 30% * $535,000 = $160,500.  The difference of 70% is received in June.

d) Cash Sales for June = 30% of April Sales = 30% * $560,000 = $168,000.  The difference of 70% is received in July.

3 0
3 years ago
A company, which records its delivery trucks at the market price, has violated the following concept:
klio [65]

Yo Mf leave this page right now nobody cares abot your questions

4 0
3 years ago
Cory owns a custom purse-design business. He launched an advertising campaign featuring purses made of environmentally friendly
Dvinal [7]

Answer:

build brand loyalty

Explanation:

Based on the scenario being described within the question it can be said that the Cory's final goal in this scenario is to build brand loyalty. This term refers to when customers decide to purchase a brand's product over other competitor's products due to them having had great purchasing experiences with that company.

8 0
3 years ago
U.S. GAAP for long-lived assets significantly impedes rate-of-return comparisons across companies unless the firms:
kap26 [50]

Answer: Apply the same depreciation methods and the same useful lives among similar groups of assets

Explanation:

US GAAP for long-lived assets significantly impedes rate-of-return that is, the annual income from an investment which is being expressed as a proportion of the original investment comparisons across companies unless the firms apply the same depreciation methods and also the same useful lives are applied among identical groups of assets.

6 0
2 years ago
Buffy is engaging product users to create an exhaustive list of things that bother them when they use the product and how often
Luden [163]
What is your question? :)
7 0
3 years ago
Other questions:
  • Jasper Company has a defined benefit pension plan. Effective at the beginning of the current year, the company retroactively ame
    8·1 answer
  • Jason, a high-school student, mows lawns for families in his neighborhood. the going rate is $12 for each lawn-mowing service. j
    8·1 answer
  • Drivers of the growth of international acquisitions include all of the following except:_________.
    14·1 answer
  • What is an elevator pitch
    14·1 answer
  • The price of one necklace is the same as the price of five rings. One ring costs $320. The cost of a necklace is
    9·2 answers
  • What does the inflation rate indicate?
    9·1 answer
  • an example of how product characteristics influence transporation is that if a product is high density
    7·1 answer
  • Terps Company reported total assets of $2,400,000 and net income of $320,000 for the current year. The company determined that i
    11·1 answer
  • State the effect (cash receipt or payment and amount) of each of the following transactions, considered individually, on cash fl
    5·1 answer
  • Department S had no work in process at the beginning of the period. It added 14,800 units of direct materials during the period
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!