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A. Gympa reported on its income statement a net income $647,000 for the year ended December 31 before considering the following:   During the year, Gympa purchased trading securities  At year-end , the fair value of the investment portfolio was $50,000 lesshan the cost  The balance of Retained Earnings was $792,000 on January 1  Gympa paid $67,000 in cash dividends during the year.  Using the above data, calculate the balance of Retained Earnings on Decemeber 31.

A. Gympa reported on its income statement a net income $647,000 for the year ended December 31 before considering the following:   During the year, Gympa purchased trading securities  At year-end , the fair value of the investment portfolio was $50,000 lesshan the cost  The balance of Retained Earnings was $792,000 on January 1  Gympa paid $67,000 in cash dividends during the year.  Using the above data, calculate the balance of Retained Earnings on Decemeber 31.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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A. Gympa reported on its income statement a net income $647,000 for the year ended December 31 before considering the following:  

  1. During the year, Gympa purchased trading securities 
  1. At year-end , the fair value of the investment portfolio was $50,000 lesshan the cost 
  1. The balance of Retained Earnings was $792,000 on January 1 
  1. Gympa paid $67,000 in cash dividends during the year. 

Using the above data, calculate the balance of Retained Earnings on Decemeber 31. 

 

A. The Nile House of Fashion has Asset Turnover of 2.65X. What does it mean? 

  1. That each dollar of Nile’s asset generates $2.25 in sales 
  1. That each dollar of stockholders’ equity generates $2.25 of profit 
  1. That Nile’s EPS is $2.25 
  1. That each dollar of Nile’s Equity generates a deficit of $2.25 
  1. None of the above. 

 

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