Calculate Facebook's addition to retained earnings if, in 2020, Facebook reported $634,000 in revenues, $73,000 in depreciation, $328,000 in operating expenses, $38,000 in interest charges, and a 21% tax rate. In 2020, Facebook firm distributed $68,000 in cash dividends. fill in the blank with $
Q: During 2019, Minh Corporation had a net income of $144,000. Ordinary share capital was $200,000…
A: Cash flow statement is a statement which is prepared to find out the cash comes in and goes out , by…
Q: Starr Co. had sales revenue of $540,000 in 2020. Other items recorded during the year were: Cost…
A: Introduction Income statement is a summary of incomes and expenses to ascertain net profit.. Single…
Q: At the end of 2020, the Light Bulb Company announced it had produced a gross profit of R1 million.…
A: Operating Profit or Earnings before Interest and taxes is calculated with the help of following…
Q: uring 2019, Rainbow Umbrella Corp. had sales of $630,000. Cost of goods sold, administrative and…
A: Profit before tax = Sales - Cost of goods sold - all expenses Net income (Profit after tax) =…
Q: The Harrison Bicycle Company had the following operating results for 2021-2022. In addition, the…
A: Cash flow statement is very important as it gives company a clear picture about its cash…
Q: Laiho Industries^ 2018 and 2019 bal ance sheets (in thousands of dollars) are shown. a. Sales for…
A: Balance Sheet: A balance sheet is an assertion of the resources, liabilities, and capital of a…
Q: Vaughn Corporation had net sales of $2,413,000 and interest revenue of $34,000 during 2020. Expenses…
A: Formula: Net income = Revenues - Expenses
Q: The 2019 financial statements for Growth Industries are presented below. INCOME STATEMENT, 2019…
A:
Q: The 2017 balance sheet of Kerber's Tennis Shop, Inc., showed long-term debt of $1.87 million, and…
A: Cash Flow From Operating Activities= Cash Flow From operating Activities Include the cash flow…
Q: Suppose that in April 2019, Nike Inc. had sales of $36,312 million, EBITDA of $5,217 million, excess…
A: a) Nike' share price can be calculated using the below formula, where Average EV to sales multiple =…
Q: Kingbird Corporation has retained earnings of $710,000 at January 1, 2020. Net income during 2020…
A: Retained Earnings are the amount of a business's profits left to the company after the distribution…
Q: Webster and Company had a balance in their retained earnings account at the end of 2020 in the…
A: Formula: Addition to Retained earnings = Net income - Dividends.
Q: Portman Corporation has retained earnings of $675,000 at January 1, 2020. Net income during 2020 was…
A: Given information is: Portman Corporation has retained earnings of $675,000 at January 1, 2020. Net…
Q: Maggie’s Skunk Removal Corp.’s 2021 income statement listed net sales of $13.7 million, gross profit…
A: The question is based on the concept of ratio analysis . Ratio analysis is a tool of financial…
Q: The income statement of Bulldogs Inc. in 2022 reflects a net Income of P2,050,000. The dividend…
A: Given Information : Net Income = P2,050,000 Annual Dividend = P2 Dividend Yield = 20%
Q: Nellie Company provided the following information at the end of each year:…
A: Cash flow from Financing activities: It include transactions relating to the debt, equity, and…
Q: A company has $100,000 of share capital and $60,000 Retained Earnings at the end of 2020, and…
A: Retained earnings ending balance is result of retained earnings beginning balance plus Net income…
Q: Nash Corporation had net sales of $2,401,300 and interest revenue of $36,200 during 2020. Expenses…
A: Under Multi-Step Income Statement, All the line items are required to be shown in the specific…
Q: he Dec 31, 2018 balance sheet of Whelan inc., showed $138,000 in the common stock account and…
A: The cash flow statement is an essential part of the financial statements of the organization. It is…
Q: Rush Berry Corporation has a Php 1,500,000 credit balance of Retained Earnings in 2020. The…
A: Adjusted retained earnings = Net profit/ loss + Retained earning - dividend paid
Q: What were Ant's total liabilities in 2019? Write out your answer completely. For example, 25 million…
A: Liabilities refers to the obligation on any individual or a company to pay the amount borrowed from…
Q: Your corporation paid $12,000,000 in dividends during 2020, and also sold $9,000,000 in stock to…
A: Cash flow to stockholders is equal to the amount of dividend paid to the stockholders minus the…
Q: During 2021, your firm reported net income of $600 and paid a $120 cash dividend. The Dec 31, 2020…
A: Retained earnings Balance on December 31, 2021 = Retained Earnings Balance on December 31, 2020 +…
Q: On April 1, 2020, Biggins Co. received P350,000 cash dividends, one-third of which represents…
A: Regular Dividends are given by the business organizations to their shareholders from the retained…
Q: In 2020, Stark Company Inc. had the following cash transactions: Issuance of common stock $175,000…
A: Issuance of common stock (A) = $ 175000 Payment of dividends (B) = $ 20,000 Sale of treasury stock…
Q: The balance in Retained Earnings at the end of 2020 was $75,000. The balance in Retained Earning at…
A: Solution: The amount of dividends being declared is as follows: Particulars Amount($) Opening…
Q: On January 1, 2021 Phillip Enterprises showed total assets of P5,000,000 and total liabilities and…
A: Owner equity means the amount that belong to the owner of the business. Any profit will increase…
Q: Keokuk Corp. had the following operating results for 2021 & 2020. Keokuk paid dividends of $100,000…
A: Ratios are the mathematical expressions computed with two figures for comparison. When the figures…
Q: At the end of 2021, PT. Wardah International announced a gross profit of $1 million. The costs…
A: earnings available for common stockholders = Net income - preferred Dividend
Q: Marigold Corporation had net sales of $2,400,900 and interest revenue of $37,400 during 2020.…
A: Income statement: It tells the net profit / ( loss ) of the company in a particular period All the…
Q: dividends
A: Formula to calculate net income is given by: Net income = Increase in retained earnings + dividends…
Q: During 2019, Bitsincoins Corporation had EBIT of $100,000, a change in net fixed assets of $400,000,…
A: EBIT = 100,000 Change in Fixed Assets = 400,000 Increase in current assets = 100,000 Increase in…
Q: 2021, Bulldogs Inc. net income doubled from the 2020 figure. The number of outstanding shares is…
A: Dividend is paid to shareholder on the basis of Payout Ratio. It is that percentage of Total profit…
Q: Brisky Corporation had net sales of $2,400,000 and interest revenue of $31,000 during 2020. Expenses…
A: Brisky Corporation Single step Income Statement For the Year Ended December 31, 2020…
Q: Micheal Ray Richardson Co. (MRR) had 2020 net income of $54000. The firm paid out 20 percent of the…
A: Cash is the basic need to operate a business. Cash flow means increase or decrease in cash which…
Q: The balance in retained earnings at December 31, 2019 was ₱810,000 and at December 31, 2020 was…
A: Dividends: This is the amount of cash distributed to stockholders by a company out its earnings,…
Q: The 2019 financial statements for Growth Industries are presented below. INCOME STATEMENT, 2019…
A: Computation of the external financing over the next year is shown below: Hence, the external fund…
Q: The 2019 financial statements for Growth Industries are presented below. INCOME STATEMENT, 2019…
A: Given: Tax rate 21.000% Growth rate 30% Operating capacity 75% Dividend payout ratio…
Q: the 2019 balance sheet of Dyrdeks skate shop showed $570,000 in the common stock account and $2.4…
A: A type of publicly traded security that provides ownership and voting rights to its holder is term…
Q: Windsor Corporation had net sales of $2,404,900 and interest revenue of $38,100 during 2020.…
A: Windsor Corporation’s condensed multiple-step income statement is prepared as follows:
Q: Grant Inc. reported retained earnings of $287,000 on its balance sheet on 12/31/2020, and it had…
A: Closing retained earnings = Opening retained earnings + Net income for the year - Dividends paid…
Q: Brooks Sporting Inc. is prepared to report the following 2019 income statement (shown in thousands…
A: Given information :- Company outstanding share 333,000 Current market price(P0 ) $41…
Q: On 2021, Bulldogs Inc. net income doubled from the 2020 figure. The number of outstanding shares is…
A: Calculation of total income for 2021: Earnings per share = Payment per shareholder ÷ Pay-out ratio…
Q: Palmar Corporation has total assets and total liabilities of $82,000 and $40,000, respectively, at…
A: As per accounting equation, Assets = Liabilities + Owner's Equity
Q: In 2020, Pennington Corporation had net sales of $600,000 and cost of goods sold of $360,000.…
A: Return on common stockholders' equity is the proportion of net income that is payable to common…
Q: Keokuk Corp. had the following operating results for 2021 & 2020. Keokuk paid dividends of $100,000…
A: Here, Total Shares outstanding in 2021 is 1,050,000 Stock Price of Share in 2021 is $12.00
Q: In 2021, Jake's Jamming Music, Inc., announced an ROA of 8.65 percent, ROE of 15.40 percent, and…
A: ROA = Net income / Total assets = 8.65%ROE = Net income / Total Equity = 15.40%Profit margin = Net…
Q: Splendid Corporation has retained earnings of 707,000 at January 1, 2020. Net income during 2020 was…
A: Opening retained earnings will be increased by the amount of net income earned during the year .…
Q: Nash Corporation had net sales of $2,416,400 and interest revenue of $33,800 during 2020. Expenses…
A: Single step Income Statement : In this format of income statement, the expenses are not…
Q: The Harrison Bicycle Company had the following operating results for 2021-2022. In addition, the…
A: The value of equity is determined by deducting total liabilities from the total assets. The…
1
Trending now
This is a popular solution!
Step by step
Solved in 3 steps with 2 images
- DIVIDENDS Brooks Sporting Inc. is prepared to report the following 2019 income statement (shown in thousands of dollars). Prior to reporting this income statement, the company wants to determine its annual dividend. The company has 320,000 shares of common stock outstanding, and its stock trades at 37 per share. a. The company had a 25% dividend payout ratio in 2018. If Brooks wants to maintain this payout ratio in 2019, what will be its per-share dividend in 2019? b. If the company maintains this 25% payout ratio, what will be the current dividend yield on the companys stock? c. The company reported net income of 1.35 million in 2018. Assume that the number of shares outstanding has remained constant. What was the companys per-share dividend in 2018? d. As an alternative to maintaining the same dividend payout ratio. Brooks is considering maintaining the same per-share dividend in 2019 that it paid in 2018. If it chooses this policy, what will be the companys dividend payout ratio in 2019? e. Assume that the company is interested in dramatically expanding its operations and that this expansion will require significant amounts of capital. The company would like to avoid transactions costs involved in issuing new equity. Given this scenario, would it make more sense for the company to maintain a constant dividend payout ratio or to maintain the same per-share dividend? Explain.Hyde Corporations capital structure at December 31, 2018, was as follows: On July 2, 2019, Hyde issued a 10% stock dividend on its common stock and paid a cash dividend of 2.00 per share on its preferred stock. Net income for the year ended December 31, 2019, was 780,000. What should be Hydes 2019 basic earnings per share? a. 7.80 b. 7.09 c. 7.68 d. 6.73Comprehensive The following are Farrell Corporations balance sheets as of December 31, 2019, and 2018, and the statement of income and retained earnings for the year ended December 31, 2019: Additional information: a. On January 2, 2019, Farrell sold equipment costing 45,000, with a book value of 24,000, for 19,000 cash. b. On April 2, 2019, Farrell issued 1, 000 shares of common stock for 23,000 cash. c. On May 14, 2019, Farrell sold all of its treasury stock for 25,000 cash. d. On June 1, 2019, Farrell paid 50, 000 to retire bonds with a face value (and book value) of 50, 000. e. On July 2, 2019, Farrell purchased equipment for 63, 000 cash. f. On December 31, 2019, land with a fair market value of 150,000 was purchased through the issuance of a long-term note in the amount of 150,000. The note bears interest at the rate of 15% and is due on December 31, 2021. g. Deferred taxes payable represent temporary differences relating to the use of accelerated depreciation methods for income tax reporting and the straight-line method for financial statement reporting. Required: 1. Prepare a spreadsheet to support a statement of cash flows for Farrell for the year ended December 31, 2019, based on the preceding information. 2. Prepare the statement of cash flows. (Appendix 21.1) Spreadsheet and Statement Refer to the information for Farrell Corporation in P21-13. Required: 1. Using the direct method for operating cash flows, prepare a spreadsheet to support a 2019 statement of cash flows. (Hint: Combine the income statement and December 31, 2019, balance sheet items for the adjusted trial balance. Use a retained earnings balance of 291,000 in this adjusted trial balance.) 2. Prepare the statement of cash flows. (A separate schedule reconciling net income to cash provided by operating activities is not necessary.)
- Comprehensive The following are Farrell Corporations balance sheets as of December 31, 2019, and 2018, and the statement of income and retained earnings for the year ended December 31, 2019: Additional information: a. On January 2, 2019, Farrell sold equipment costing 45,000, with a book value of 24,000, for 19,000 cash. b. On April 2, 2019, Farrell issued 1,000 shares of common stock for 23,000 cash. c. On May 14, 2019, Farrell sold all of its treasury stock for 25,000 cash. d. On June 1, 2019, Farrell paid 50,000 to retire bonds with a face value (and book value) of 50,000. e. On July 2, 2019, Farrell purchased equipment for 63,000 cash. f. On December 31, 2019. land with a fair market value of 150,000 was purchased through the issuance of a long-term note in the amount of 150,000. The note bears interest at the rate of 15% and is due on December 31, 2021. g. Deferred taxes payable represent temporary differences relating to the use of accelerated depreciation methods for income tax reporting and the straight-line method for financial statement reporting. Required: 1. Prepare a spreadsheet to support a statement of cash flows for Farrell for the year ended December 31, 2019, based on the preceding information. 2. Prepare the statement of cash flows.Begin with the partial model in the file Ch02 P21 Build a Model.xlsx on the textbooks Web site. a. Using the financial statements shown here for Lan Chen Technologies, calculate net operating working capital, total net operating capital, net operating profit after taxes, free cash flow, and return on invested capital for 2020. The federal-plus-state tax rate is 25%. b. Assume there were 15 million shares outstanding at the end of 2019, the year-end closing stock price was 65 per share, and the after-tax cost of capital was 10%. Calculate EVA and MVA for 2020. Lan Chen Technologies: Income Statements for Year Ending December 31 (Millions of Dollars) Lan Chen Technologies: December 31 Balance Sheets (Thousands of Dollars)On January 1, 2019, Kittson Company had a retained earnings balance of 218,600. It is subject to a 30% corporate income tax rate. During 2019, Kittson earned net income of 67,000, and the following events occurred: 1. Cash dividends of 3 per share on 4,000 shares of common stock were declared and paid. 2. A small stock dividend was declared and issued. The dividend consisted of 600 shares of 10 par common stock. On the date of declaration, the market price of the companys common stock was 36 per share. 3. The company recalled and retired 500 shares of 100 par preferred stock. The call price was 125 per share; the stock had originally been issued for 110 per share. 4. The company discovered that it had erroneously recorded depreciation expense of 45,000 in 2018 for both financial reporting and income tax reporting. The correct depreciation for 2018 should have been 20,000. This is considered a material error. Required: 1. Prepare journal entries to record Items 1 through 4. 2. Prepare Kittsons statement of retained earnings for the year ended December 31, 2019.
- Roseau Company is preparing its annual earnings per share amounts to be disclosed on its 2019 income statement. It has collected the following information at the end of 2019: 1. Net income: 120,400. Included in the net income is income from continuing operations of 130,400 and a loss from discontinued operations (net of income taxes) of 10,000. Corporate income tax rate: 30%. 2. Common stock outstanding on January 1, 2019: 20,000 shares. 3. Common stock issuances during 2019: July 6, 4,000 shares; August 24, 3,000 shares. 4. Stock dividend: On October 19, 2019, the company declared a 10% stock dividend that resulted in 2,700 additional outstanding shares of common stock. 5. Common stock prices: 2019 average market price, 30 per share; 2019 ending market price, 27 per share. 6. 7% preferred stock outstanding on January 1, 2019: 1,000 shares. Terms: 100 par, nonconvertible. Current dividends have been paid. No preferred stock issued during 2019. 7. 8% convertible preferred stock outstanding on January 1, 2019: 800 shares. The stock was issued in 2018 at 130 per share. Each 100 par preferred stock is currently convertible into 1.7 shares of common stock. Current dividends have been paid. To date, no preferred stock has been converted. 8. Bonds payable outstanding on January 1, 2019: 100,000 face value. These bonds were issued several years ago at 97 and pay annual interest of 9.6%. The discount is being amortized in the amount of 300 per year. Each 1,000 bond is currently convertible into 22 shares of common stock. To date, no bonds have been converted. 9. Compensatory share options outstanding: Key executives may currently acquire 3,000 shares of common stock at 20 per share. The options were granted in 2018. To date, none have been exercised. The unrecognized compensation cost (net of tax) related to the options is 4 per share. Required: 1. Compute the basic earnings per share. Show supporting calculations. 2. Compute the diluted earnings per share. Show supporting calculations. 3. Show how Roseau would report these earnings per share figures on its 2019 income statement. Include an explanatory note to the financial statements.Fisafolia Corporation has gross income from operations of $210,000 and operating expenses of $160,000 for 2019. The corporation also has $30,000 in dividends from publicly traded domestic corporations in which the ownership percentage was 45 percent. Calculate the corporation's dividends received deduction for 2019. $_____________ Assume that instead of $210,000, Fisafolia Corporation has gross income from operations of $135,000. Calculate the corporation's dividends received deduction for 2019. $___________ Assume that instead of $210,000, Fisafolia Corporation has gross income from operations of $158,000. Calculate the corporation's dividends received deduction for 2019. $_____________Leverage Cook Corporation issued financial statements at December 31, 2019, that include the following information: Balance sheet at December 31,2019 Assets $8,000,000 Liabilities $1,200,000 Stockholders' equity (300,000 shares) $6,800,000 Income statement for 2019: Income from operations $1,200,000 Less: Interest expense (100,000) Income before taxes $1,100,000 Less: Income taxes expense (0,30) (330,000) Net income $ 770,000 The levels of assets, liabilities, stockholders' equity, and operating income have been stable in recent years; however, Cook Corporation is planning a 51,800,000 expansion program that will increase income from operations by $350,000 to $1,550,000, Cook is planning to sell 8.5% notes at par to finance the expansion. Required: What earnings per share does Cook report before the expansion?
- LONG-TERM FINANCING NEEDED At year-end 2019, total assets for Arrington Inc. were 1.8 million and accounts payable were 450,000. Sales, which in 2019 were 3.0 million, are expected to increase by 25% in 2020. Total assets and accounts payable are proportional to sales, and that relationship will be maintained; that is, they will grow at the same rate as sales. Arrington typically uses no current liabilities other than accounts payable. Common stock amounted to 500,000 in 2019, and retained earnings were 475,000. Arrington plans to sell new common stock in the amount of 130,000. The firms profit margin on sates is 5%; 35% of earnings will be retained. a. What were Arringtons total liabilities in 2019? b. How much new long-term debt financing will be needed in 2020? (Hint: AFN - New stock = New long-term debt.)Dunn Company recognized a 5,000 unrealized holding gain on investment in Starbuckss long-term bonds during 2019. The company classified its investment as an available-for-sale security. How would this information be reported on a statement of cash flows prepared using the indirect method?Balance Sheet Calculations Cornerstone Development Companys balance sheet information at the end of 2019 and 2020 is provided in random order, as follows: Additional information: At the end of 2019, (a) the amount of long-term liabilities is twice the amount of current liabilities and (b) there are 2,900 shares of common stock outstanding. During 2020, the company (a) issued 100 shares of common stock for 25 per share, (b) earned net income of 20,600, and (c) paid dividends of 1 per share on the common stock outstanding at year-end. Required: Next Level Fill in the blanks lettered (a) through (p). All of the necessary information is provided. (Hint: It is not necessary to calculate your answers in alphabetical order.)
