Solution:
Retained earnings is "The sum of all earnings of a company to date less dividends paid to shareholders"
Hence option c is correct.
Retained earnings is Select one: O a. the sum of current year's earnings plus dividends paid...
Although dividends are not an expense of a company, they still impact retained earnings. Select one: O a. TRUE O b. FALSE
Dividend constraints Afirm has $850,000 in paid-in capital, retained earnings of $42.000 (including the current year's earnings), and 26,000 shares of common stock outstanding in the current year, it has $30,000 of earnings available for the common stockholders. a. What is the most the firm can pay in cash dividends to each common stockholder? (Assume that legal capital includes all paid-in capital.) b. What effect would a cash dividend of $1.11 per share have on the firm's balance sheet entries?...
The required return is defined as: Select one: O a. Next year's dividend divided by the current price. b. The rate at which a stock increases in value. c. The payment by a corporation to shareholders in the form of cash or stock. D d. The increase in the value of a share of stock over a period of time. e. The capital gains yield plus the dividend yield.
Yellowstone Incorporated paid salaries of $5000. The debit entry is to Select one: O a. Retained earnings O b. Cash O c. Accounts payable d. Accounts Receivable e. None of the above
Managers monitor earnings per share (EPS) because Select one: A. retained earnings must be available for the payment of EPS. B. EPS is affected by dividends paid. C. investors use EPS as a basis in evaluating the firm's profitability. D. EPS should be used as a single broad measure of overall firm performance. . Mamantor Company had a debt to equity ratio of 0.600. The company received a loan. The effect of the transaction is Select one: A. the ratio...
True or False?-Corporations 1 Shareholders' equity for a corporation consists of contributedcapital and retained earnings. 1 2 - The owner of a corporation is called a director. 3 - The payment of business profits to the owners of a corporate business'is known as drawings. I 4 A dividend is a distribution of retained earnings. I 5 6 7 8 The shareholders provide all of the financing for a corporation +One of the advantages of investing in preferred shares is that...
The balance in retained earnings at the end of the year is determined by retained earnings at the beginning of the year. Multiple Choice Plus net income, minus dividends. Plus accruals, minus deferrals. Plus revenues, minus liabilities. Plus assets, minus liabilities. A prepaid expense is an expense: Multiple Choice Incurred before the cash is paid. O Incurred and paid Pald but not yet Incurred. O All of these answer choices are incorrect.
The opening balance of retained earnings for a company was $1333638. During the year it earned a net income of $504382 and shareholders invested an additional $633517 for shares. The ending balance of retained earnings was $1596480. How much did the company pay out in dividends during the year? Select one: a. $0 O b. $875057 O c. $241540 od. $129135
20. The sale of common shares should be recorded as a (a) debit to Retained Earnings and a credit to Cash. (b) debit to Cash and a credit to Retained Earnings. (c) debit to Cash and a credit to Common Shares. (d) debit to Common Shares and a credit to Cash. 21. Dividends in arrears on cumulative preferred shares (a) never have to be paid, even if common dividends are paid. (b) must be paid before common shareholders can receive...
6. Look at the t-account for retained earnings and compute the total dividends that the company must have paid. Enter the amount here: $ Retained Earnings 717,500 beginning balance Dividends ??? 3,970,000 net income 2,595,000 Using your total dividends calculated above, if the company paid $192,000 to preferred shareholders, how much did they pay their common stockholders? $ If the company has 450,000 shares of common stock, how much in dividends did each share of stock receive? Round to the...