Need clarification on an answer I was given. The problem was to find out the cost of Dividends declared. Revenue $5000 Dividends declared??? $Unkown Expenses $4000 RE 1/1 $8000 RE 12/31 $6000 I was givent this equation on how to solve and find the unknown Dividends declared. DD=RE 1/1+Revenue-Expenses-RE 12/31 DD=$8000+$5000-$4000-$3000 DD=$6000 He or She then added this 1) RE 1/1 balance is $6000 2) RE 12/31 is $9000 3) Dividend Declared $6000 **So how did he get the new amounts for REs?***
Need clarification on an answer I was given. The problem was to find out the cost of Dividends declared. Revenue $5000 Dividends declared??? $Unkown Expenses $4000 RE 1/1 $8000 RE 12/31 $6000 I was givent this equation on how to solve and find the unknown Dividends declared. DD=RE 1/1+Revenue-Expenses-RE 12/31 DD=$8000+$5000-$4000-$3000 DD=$6000 He or She then added this 1) RE 1/1 balance is $6000 2) RE 12/31 is $9000 3) Dividend Declared $6000 **So how did he get the new amounts for REs?***
Survey of Accounting (Accounting I)
8th Edition
ISBN:9781305961883
Author:Carl Warren
Publisher:Carl Warren
Chapter9: Metric-analysis Of Financial Statements
Section: Chapter Questions
Problem 9.17E: Profitability metrics The following selected data were taken from the financial statements of The...
Related questions
Question
Need clarification on an answer I was given. The problem was to find out the cost of Dividends declared.
Revenue $5000
Dividends declared??? $Unkown
Expenses $4000
RE 1/1 $8000
RE 12/31 $6000
I was givent this equation on how to solve and find the unknown Dividends declared.
DD=RE 1/1+Revenue-Expenses-RE 12/31
DD=$8000+$5000-$4000-$3000
DD=$6000
He or She then added this
1) RE 1/1 balance is $6000
2) RE 12/31 is $9000
3) Dividend Declared $6000
**So how did he get the new amounts for REs?***
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 3 steps with 1 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Survey of Accounting (Accounting I)
Accounting
ISBN:
9781305961883
Author:
Carl Warren
Publisher:
Cengage Learning
Survey of Accounting (Accounting I)
Accounting
ISBN:
9781305961883
Author:
Carl Warren
Publisher:
Cengage Learning
Principles of Accounting Volume 1
Accounting
ISBN:
9781947172685
Author:
OpenStax
Publisher:
OpenStax College