Blue Wave Enterprises had revenues of $420,000, expenses of $275,000, and dividends of $60,000. When Income Summary is closed to Retained Earnings, What is the amount of the debit or credit to Retained Earnings? A. credit of $145,000 B. debit of $145,000 C. credit of $85,000 D. debit of $85,000

Blue Wave Enterprises had revenues of $420,000, expenses of $275,000, and dividends of $60,000. When Income Summary is closed to Retained Earnings, What is the amount of the debit or credit to Retained Earnings? A. credit of $145,000 B. debit of $145,000 C. credit of $85,000 D. debit of $85,000

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter16: Financial Statement Analysis

Section: Chapter Questions

Problem 17E

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5 )
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Net income?
The following information pertains to Diane Company. Assume that all balance sheet amounts represent both average and ending balance figures and that all sales were on credit. Use this information to answer the question that follow. AssetsCash and short-term investments $ 30,000Accounts receivable (net) 20,000Inventory 15,000Property, plant, and equipment 185,000Total assets $250,000 Liabilities and Stockholders' EquityCurrent liabilities $ 45,000Long-term liabilities 70,000Stockholders' equity—Common 135,000Total liabilities and stockholders' equity $250,000 Income StatementSales $85,000Cost of goods sold 45,000Gross margin $40,000Operating expenses (15,000)Interest expenses (5,000)Net income $20,000 Number of shares of common stock outstanding 6,000Market price of common stock $20Total dividends paid $9,000Cash provided by operations $30,000 Using the data provided for Diane Company, what is the return on common stockholders' equity?a.6.75%b.14.8%c.13.5%d.7.4%
The following information pertains to Diane Company. Assume that all balance sheet amounts represent both average and ending balance figures and that all sales were on credit. Use this information to answer the question that follow. AssetsCash and short-term investments $ 30,000Accounts receivable (net) 20,000Inventory 15,000Property, plant, and equipment 185,000Total assets $250,000 Liabilities and Stockholders' EquityCurrent liabilities $ 45,000Long-term liabilities 70,000Stockholders' equity—Common 135,000Total liabilities and stockholders' equity $250,000 Income StatementSales $85,000Cost of goods sold 45,000Gross margin $40,000Operating expenses (15,000)Interest expenses (5,000)Net income $20,000 Number of shares of common stock outstanding 6,000Market price of common stock $20Total dividends paid $9,000Cash provided by operations $30,000 Using the data provided for Diane Company, what is the price-earnings ratio?a.8.0 timesb.2.5 timesc.6.0 timesd.4.0 times
What amount is reported for net income?
The following information pertains to Diane Company. Assume that all balance sheet amounts represent both average and ending balance figures. Assume that all sales were on credit. Use this information to answer the question that follow. Assets Cash and short-term investments $40,936 Accounts receivable (net) 32,902 Inventory 36,625 Property, plant, and equipment 280,196 Total assets $390,659 Liabilities and Stockholders' Equity Current liabilities $69,773 Long-term liabilities 90,745 Stockholders' equity—Common 230,141 Total liabilities and stockholders' equity $390,659 Income Statement Net Sales $98,683 Cost of goods sold (39,473) Gross margin 59,210 Operating expenses (29,056) Interest expense (4,934) Net income $25,220 Number of shares of common stock outstanding 5,105 Market price of common stock $32 Total dividends paid $9,000 Cash provided by operations $40,936 Using the data provided for…
The following information pertains to Diana Company. Assume that all balance sheet amounts represent both average and ending balance figures and that all sales were on credit. Assets Line Item Description Amount Cash and short-term investments $36,084 Accounts receivable (net) 26,488 Inventory 39,031 Property, plant, and equipment 284,840 Total Assets $386,443 Liabilities and Stockholders’ Equity Line Item Description Amount Current liabilities $64,429 Long-term liabilities 91,237 Common stock 175,317 Retained earnings 55,460 Total liabilities and stockholders' equity $386,443 Income Statement Line Item Description Amount Sales $88,296 Cost of goods sold 35,318 Gross margin $52,978 Operating expenses (20,439) Interest expense (4,415) Net income $28,124 Line Item Description Amount Number of shares of common stock outstanding 5,546 Market price of common stock $29 Total dividends paid $9,000 Cash provided by operations…
Brock Company's financial information is as follows. Assume that all balance sheet amounts represent both average and ending balance figures and that all sales were on credit. Assets Line Item Description Amount Cash and short-term investments $38,295 Accounts receivable (net) 31,903 Inventory 28,357 Property, plant, and equipment 286,566 Total assets $385,121 Liabilities and Stockholders’ Equity Line Item Description Amount Current liabilities $60,915 Long-term liabilities 88,993 Common stock, $10 par 69,670 Retained earnings 165,543 Total liabilities and stockholders’ equity $385,121 Income Statement Line Item Description Amount Sales $91,601 Cost of goods sold (41,220) Gross profit $50,381 Operating expenses (28,458) Net income $21,923 Number of shares of common stock 6,967 Market price of common stock $33 What is the current ratio? Round your answer to two decimal places.