ABC Corporation has a total debt of $12,240,000 and their cash balance is equal to 10% of their total assets. The shareholders' equity sectionof the balance sheet of the ACC Corp. is as follows:Common stock$5,000,000Retained earnings$15.760,000Total Shareholder's Equity$20,760,000Required: Calculate the followingA) What is the current legal limit on current dividends?B) What is the practical limit based on liquidity?

Dividends are referred to as the earnings of the company which are distributed to the eligible…

Answered: ABC Corporation has a total debt of…

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter2: Basic Accounting Systems: Cash Basis

Section: Chapter Questions

Problem 10CDQ: Assume that as of January 1, 20Y8, Sylvester Con- suiting has total assets of $500,000 and total...

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Assume that as of January 1, 20Y8, Sylvester Con- suiting has total assets of $500,000 and total assets of $150,000. As of December 31, 20Y8, Sylvester has total liabilities of $200,000 and total stockholders’ equity of $400,000. (a) What was Sylvester’s stockholders’ equity as of January 1, 20Y8? (b) Assume that Sylvester did not pay any dividends during 20Y8. What was the amount of net income for 20Y8?
Shown below is the liabilities and stockholders’ equity section of the balance sheet for Jana Kingston Company and Mary Ann Benson Company. Each has assets totaling $4,200,000. Jana Kingston Co. 000 Mary Ann Benson Co. Current liabilities $ 300,000 Current liabilities $0.600,000 Long-term debt, 10% 1,200,000 Common stock ($20 par) 2,900,000 Common stock ($20 par) 2,000,000 Retained earnings (Cash dividends, $328,000) 700,000 Retained earnings (Cash dividends, $220,000) 00.700,000 0 00.700,000 00 $4,200,000 00 $4,200,000 For the year, each company has earned the same income before interest and taxes. 00 0000 Jana Kingston Co. 0000 Mary Ann Benson Co. Income before interest and taxes $1,200,000** $1,200,000*** Interest expense 00120,000** 00–0–****** 00 1,080,000** 1,200,000*** Income taxes (20%) 00216,000** 00240,000*** Net income $ 864,000** $ 960,000*** At year-end, the market price of Kingston's stock was…
Houghton Company has the following items: share capital- ordinary, $820,000; treasury shares, $85,000; deferred taxes, $100,000 and retained earnings, $313,000. What amount should Houghton Company report as total equity?
Houghton Company has the following items: common stock, $900,000; treasury stock, $105,000; deferred taxes, $125,000 and retained earnings, $390,000. What total amount should Houghton Company report as stockholders' equity? Group of answer choices $1,060,000. $1,185,000. $1,310,000. $1,395,000.
Assume you are given the following abbreviated financial statement. ($ in millions)Current assets $150Fixed and other assets $200Total assets $350 Current liabilities $ 100Long-term debt $ 50Stockholders’ equity $200Total liabilities and equities $350 Common shares outstanding 10 million shares Total revenues $500Total operating costs and expenses $435Interest expense $10Income taxes $ 20Net profits $35 Dividends paid to common stockholders $ 10 Question: On the basis of this information, calculate as many liquidity, activity,leverage, profitability, and common stock measures as you can. (Note:Assume the current market price of the common stock is $75 per share.)
The following data are extracted from the shareholders' equity section of the statement of financial position of Del Corporation: Ordinary shares, P2 par value - Balance as of December 31, 2010; P1,000,000. Ordinary shares, P2 par value - Balance as of December 31, 2011; P1,020,000. Share premium - Balance as of December 31, 2010: P500.000. Share premium Balance as of December 31, 2011; P580,000. Retained earnings - Balance as of December 31, 2010; P1,000,000. Retained earnings - Balance as of December 31, 2011; P1,046,000. During 2011, the corporation declared and paid cash dividends of P150,000 and also declared and issued a share dividend. There were no other changes in shares issued and outstanding during 2011. What is the net income for 2011.
Accounting XYZ Corporation had the following balance sheet information: Total assets: $500,000Total liabilities: $200,000Shareholders' equity: $300,000If XYZ Corporation has 50,000 shares outstanding, what is the book value per share?
SW Company provides the Equity & Liability information below for analysis. SW Company had net and $335,800 in 2022. Equity and Liabilities Share capital-common (136,400 shares issued) Retained earnings (Note 1) Accrued liabilities Notes payable (current) Accounts payable Total equity and liabilities Note 1: Cash dividends were paid at the rate of $1 per share in 2022 and $2 per share in 2023. Required: 1. Calculate the return on common share equity for 2022 and 2023. (Assume total equity was $1,439,00 (Round your answers to 1 decimal place.) Return on equity 2022 23.3 % 2023 26.0 % Prox 5 2023 2022 $1,242,000 $1,242,000 417,700 300,000 9,100 6,100 76,600 66,700 63,300 182,500 $1,808,700 $1,797,300 ‒‒‒ - Next
The Namleda Corporation has an income statement that indicates thatoperating income is $2,375,486 and pays interest of $100,000 and taxes of$900,000. The corporation currently has an average of 3 million shares ofcommon stock outstanding and 1 million shares of preferred stock, whichpays a dividend of $1.00 per share. What is the corporation’s approximateearnings per share?
Assume that Farm Fresh Produce, Inc. has 725,000 shares of common stock outstanding and that the firm paid a “dividend per share” of $0.35 during the current year. What is the value of the total dividends paid to the common shareholders of Farm Fresh Produce, Inc. during the current year?
The following data are extracted from the shareholders' equity section of 5 points the statement of financial position of Del Corporation: Ordinary shares, P2 par value - Balance as of December 31, 2010; P1,000,000. Ordinary shares, P2 par value - Balance as of December 31, 2011; P1,020,000. Share premium - Balance as of December 31, 2010: P500.000. Share premium Balance as of December 31, 2011; P580,000. Retained earnings - Balance as of December 31, 2010; P1,000,000. Retained earnings - Balance as of December 31, 2011; P1,046,000. During 2011, the corporation declared and paid cash dividends of P150,000 and also declared and issued a share dividend. There were no other changes in shares issued and outstanding during 2011. What is the net income for 2011.
SW Company provides the Equity & Liability information below for analysis. SW Company had net income of $424,100 in 2023 and $373,500 in 2022. Equity and Liabilities. Share capital-common (141,800 shares issued) Retained earnings (Note 1) Accrued liabilities. Notes payable (current) Accounts payable Total equity and liabilities Return on equity 2022 Book value per share Note 1: Cash dividends were paid at the rate of $1 per share in 2022 and $2 per share in 2023. Required: 1. Calculate the return on common share equity for 2022 and 2023. (Assume total equity was $1,618,900 at December 31, 2021.) (Round your answers to 1 decimal place.) 2023 2022 2023 2022 $1,228,500 $1,228,500 274,500 6,600 56, 600 171,900 $1,797,000 $1,738,100 2023 429,500 8,500 2. Calculate the book value per shares for 2022 and 2023. (Round your answers to 2 decimal places.) 69,700 60,800

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