5. The amount shown on the December 31, 2015, balance sheet as "retained earnings" isFequal to the firm's net income for 2015 minus any dividends it paid.a. Trueb. FalseIf your answer is false, what is the correct answer:

Retained earnings is a part of net income. From the company consensus, this part is used for…

Answered: 5. The amount shown on the December 31,…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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If total equity decreased by RO10,00oo, then, to balance the accounting equation Select one a. Equity must have decreased by R0.10,000. O b Liabilities must have decreased by R.O.10,000. c. Assets must have decreased by R.O.10,000 O d. Assets must have increased by R.O.10,000.
am. 104.
Fill in the dollar changes caused in the Investment account and Dividend Revenue or Investment Revenue account by each of the following transactions, assuming Ayayai Company uses (a) the fair value method and (b) the equity method for accounting for its investments in Sunland Company. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45). Do not leave any answer field blank. Enter 0 for amounts.) (a) Fair Value Method (b) Equity Method Transaction Investment Account Dividend Revenue Investment Account Investment Revenue 1. At the beginning of Year 1, Ayayai bought 30% of Sunland's common stock at its book value. Total book value of all Sunland's common stock was $760,000 on this date. 2. (a) During Year 1, Sunland reported $52,000 of net income. (b) During Year 1, Sunland paid $28,500 of dividends. 3. (a) During Year 2, Sunland reported…
3
can you explain how to solve this?
Question 2: What is the profit margin for 2014? (Round to two decimal places.) What is the profit margin for 2013? (Round to two decimal places.) What is the return on assets for 2014? (Round to two decimal places.) What is the return on assets for 2013? (Round to two decimal places.) What is the return on equity for 2014? (Round to two decimal places.) What is the return on equity for 2013? (Round to two decimal places.) Should any of these ratios or the change in a ratio warrant concern for the managers of Tyler Toys or the shareholders? (Select the best response.) A. These ratios indicate a somewhat weak firm performance for the equity holders with an ROE of over 42.96% for 2013. B. These ratios indicate a somewhat weak firm performance for the equity holders with an ROE of over 42.96% for 2014. C. These ratios indicate a somewhat strong firm performance for the equity holders with an ROE of over 42.96% for 2014. D.…
4. (Question 4 is composed of two parts.) The DuPont formula defines the net return on shareholders' equity as a function of the following components: • Operating margin Asset turnover Interest burden Financial leverage Income tax rate Using only the data in the table shown below: a. Calculate each of the five components listed above for 2010 and 2014, and calculate the return on equity (ROE) for 2010 and 2014, using all of the five components. Show calculations. b. Briefly discuss the impact of the changes in asset turnover and financial leverage on the change in ROE from 2010 to 2014. Income Statement Data Revenues Operating income Depreciation and amortization Interest expense Pretax income Income taxes Net income after tax Balance Sheet Data Fixed assets Total assets Working capital Total debt Total shareholders' equity 2010 $542 38 3 3 32 13 19 2010 $41 245 123 16 159 2014 $979 76 9 0 67 37 30 2014 $70 291 157 0 220
Use the following information to prepare, in good form, an income statement, a statement of changes in equity, and a statement of financial position for Geelin Industries Ltd. for the month ended August 31, 2018: ...... Accounts payable.......................................................... $ 9,375 ...... Accounts receivable...................................................... 5,500 ...... Bank loan payable........................................................ 13,750 ...... Cash.............................................................................. 58,750 ...... Common shares............................................................ 94,375 ...... Dividends declared....................................................... 6,250 ...... Income tax expense...................................................... 17,375 ...... Insurance expense........................................................ 2,125 ......…
The appropriate discount rate for the following cash flows is 7.58 percent per year: Year 1 2 3 4 Cash Flow $2,520 $0 $3,960 $2,210 What is the present value of the cash flows as of Year O? $7,025.36 $7,537.38 $6,941.87 $7,321.33 $7,172.91
Q1 Which of the following is not of the methods of valuation? a. Balance sheet – where the firm is valued in terms of its assets b. Discounted cash flow c. Income or earnings- where the firm is valued on some multiple of account income or earnings. d. Market share
M7 Q1
Q5. The following items would be presented in the Statement of Changes in Equity.Answer only TRUE or FALSE for each(i) Loan interest for the year(i) Dividend paid in the year(iii) Revaluation of property plant and equipment

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5. The amount shown on the December 31, 2015, balance sheet as "retained earnings" is equal to the firm's net income for 2015 minus any dividends it paid. a. True b. False If your answer is false, what is the correct answer: