Grouper Co. invested $1,060,000 in Monty Co. for 25% of its outstanding stock. Monty Co. pays out 30% of net income in dividends each year. Use the information in the following T-account for the investment in Monty to answer the following questions. Investment in Monty Co. 1,060,000 121,000 36,300 (a) How much was Grouper Co.’s share of Monty Co.’s net income for the year? Net income $enter Grouper’s net income in dollars (b) What was Monty Co.’s total net income for the year? Total net income $enter the total net income of MontyCo. for the year (c) What was Monty Co.’s total dividends for the year? Total Dividends $enter the total dividends of MontyCo. for the year (d) How much was Grouper Co.’s share of Monty Co.’s dividends for the year? Dividends $enter the dollar amount of dividends for Grouper Co.
Grouper Co. invested $1,060,000 in Monty Co. for 25% of its outstanding stock. Monty Co. pays out 30% of net income in dividends each year. Use the information in the following T-account for the investment in Monty to answer the following questions. Investment in Monty Co. 1,060,000 121,000 36,300 (a) How much was Grouper Co.’s share of Monty Co.’s net income for the year? Net income $enter Grouper’s net income in dollars (b) What was Monty Co.’s total net income for the year? Total net income $enter the total net income of MontyCo. for the year (c) What was Monty Co.’s total dividends for the year? Total Dividends $enter the total dividends of MontyCo. for the year (d) How much was Grouper Co.’s share of Monty Co.’s dividends for the year? Dividends $enter the dollar amount of dividends for Grouper Co.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Grouper Co. invested $1,060,000 in Monty Co. for 25% of its outstanding stock. Monty Co. pays out 30% of net income in dividends each year.
Use the information in the following T-account for the investment in Monty to answer the following questions.
(a) How much was Grouper Co.’s share of Monty Co.’s net income for the year?
(b) What was Monty Co.’s total net income for the year?
(c) What was Monty Co.’s total dividends for the year?
(d) How much was Grouper Co.’s share of Monty Co.’s dividends for the year?
Use the information in the following T-account for the investment in Monty to answer the following questions.
|
Investment in Monty Co.
|
|
|---|---|
| 1,060,000 | |
| 121,000 | |
| 36,300 |
(a) How much was Grouper Co.’s share of Monty Co.’s net income for the year?
| Net income | $enter Grouper’s net income in dollars |
(b) What was Monty Co.’s total net income for the year?
| Total net income | $enter the total net income of MontyCo. for the year |
(c) What was Monty Co.’s total dividends for the year?
| Total Dividends | $enter the total dividends of MontyCo. for the year |
(d) How much was Grouper Co.’s share of Monty Co.’s dividends for the year?
| Dividends | $enter the dollar amount of dividends for Grouper Co. |
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