A firm’s balance sheets for the last two years are as follows (refer to image):Sales in 20X1 were $250,000. Sales in 20X2 were $250,000.If the firm earned $5,000 during 2012, what proportion of those earningswere distributed? YEAR 20X1AssetsLiabilities and EquityCash$19,000Accounts payable$12,000Accruals10,000Accounts receivable11,000Current bank note10,000Long-term debtInventoryPlant and equipment20,00032,00050,000Common stock14,000Retained earnings22,000$100,000$100,000YEAR 20X2AssetsLiabilities and EquityCash$2,000Accounts payable$12,000Accruals10,000Accounts receivable28,000Current bank note30,000Inventory20,000Long-term debt10,000Plant and equipment50,000Common stock14,000Retained earnings24,000$100,000$100,000

Given data; Earnings in 2012 = $5000 retained earning for 20X1 = $22,000 Retained earnings for 20X2…

A firm’s balance sheets for the last two years are as follows (refer to image): Sales in 20X1 were $250,000. Sales in 20X2 were $250,000. If the firm earned $5,000 during 2012, what proportion of those earnings were distributed?

A firm’s balance sheets for the last two years are as follows (refer to image): Sales in 20X1 were $250,000. Sales in 20X2 were $250,000. If the firm earned $5,000 during 2012, what proportion of those earnings were distributed?

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter12: Fainancial Statement Analysis

Section: Chapter Questions

Problem 18MCQ

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