Question

Monty Co. invested $1,020,000 in Flounder Co. for 25% of its outstanding stock. Flounder Co. pays out 30% of net income in dividends each year.

Use the information in the following T-account for the investment in Flounder to answer the following questions.

Investment in Flounder Co.
1,020,000
111,000
	33,300

(a) How much was Monty Co.’s share of Flounder Co.’s net income for the year?

Net income

$enter Monty’s net income in dollars

(b) What was Flounder Co.’s total net income for the year?

Total net income

$enter the total net income of FlounderCo. for the year

(c) What was Flounder Co.’s total dividends for the year?

Total Dividends

$enter the total dividends of FlounderCo. for the year

(d) How much was Monty Co.’s share of Flounder Co.’s dividends for the year?

Dividends

$enter the dollar amount of dividends for Monty Co.

Answer 1

Sowtion the Year Increase in the vetment 1ooo 444000 foundar co h 1the total Net ncme the Yeor

444000730 33 200 loundur co Year lovnde his the btal didend 33300 To00 30y fer the Year hare Monty davidend o Thas