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A firm’s balance sheets for the last two years are as follows (refer to image): Sales in 20X1 were $250,000. Sales in 20X2 were $250,000. If the firm earned $5,000 during 2012, what proportion of those earnings were distributed?

A firm’s balance sheets for the last two years are as follows (refer to image): Sales in 20X1 were $250,000. Sales in 20X2 were $250,000. If the firm earned $5,000 during 2012, what proportion of those earnings were distributed?

Essentials Of Investments
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
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A firm’s balance sheets for the last two years are as follows (refer to image):

Sales in 20X1 were $250,000. Sales in 20X2 were $250,000.

If the firm earned $5,000 during 2012, what proportion of those earnings
were distributed?

YEAR 20X1 Assets Liabilities and Equity Cash $19,000 Accounts payable $12,000 Accruals 10,000 Accounts receivable 11,000 Current bank note 10,000 Long-term debt Inventory Plant and equipment 20,000 32,000 50,000 Common stock 14,000 Retained earnings 22,000 $100,000 $100,000 YEAR 20X2 Assets Liabilities and Equity Cash $2,000 Accounts payable $12,000 Accruals 10,000 Accounts receivable 28,000 Current bank note 30,000 Inventory 20,000 Long-term debt 10,000 Plant and equipment 50,000 Common stock 14,000 Retained earnings 24,000 $100,000 $100,000
Transcribed Image Text:YEAR 20X1 Assets Liabilities and Equity Cash $19,000 Accounts payable $12,000 Accruals 10,000 Accounts receivable 11,000 Current bank note 10,000 Long-term debt Inventory Plant and equipment 20,000 32,000 50,000 Common stock 14,000 Retained earnings 22,000 $100,000 $100,000 YEAR 20X2 Assets Liabilities and Equity Cash $2,000 Accounts payable $12,000 Accruals 10,000 Accounts receivable 28,000 Current bank note 30,000 Inventory 20,000 Long-term debt 10,000 Plant and equipment 50,000 Common stock 14,000 Retained earnings 24,000 $100,000 $100,000
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