How did you get the 2,200,000 in retained earnings under capital reconstruction? Capitas Reconstvction AlCParticalarAmtParfiularAmtBy Bank (iontiButionfrom Shareholder)To Inventory Alc5000001500000To Plant Alc1000000By Share capital A/C(50 x 50000)To umeconder Account3000002500000Pay ableTo Retained eaning220000040000004000000Revised Sharcholder Fquity2500000Share capitao (So000 Shares of 50 each Par value)"500000Share Pemivm200000Retained Farming ( 2200000 - 2000000)Totae Revised Shareholden Fquity.320000 0

Internal reconstruction is a process which business is being reorganized by reducing the liabilities…

Answered: How did you get the 2,200,000 in…

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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Similar questions

If a firm earns $375 billion in profits for the year and they retain $218 billion, what is the percent retention rate? And If a firm earns $375 billion in profits for the year and they retain $218 billion, what is the percent dividend payout rate?
If you owned a company, would you prefer the market value of its assets to rise $10million or the market value of its liabilities to fall $10million?
Consider a company that has the following financial information for 2022: net income $492,000; dividend payout $223,000; current assets $492,000; fixed assets $8,028,000; common equity $4,460,000; retained earnings $984,000. What is the sustainable growth rate? What is the internal growth rate?
a) Calculate the free cash flow generated by a firm which has earnings before interest and taxes of £30m, has depreciated its fixed assets by £1m, has invested £10m in new fixed assets and £5m in working capital during 2019 when it paid corporate tax at 20%. Explain what you have assumed about the firm’s asset base. (b) During 2019 the firm in (a) generated revenue of £60m, its cost of goods sold was £20m and its selling, general and administrative costs were £10m. You anticipate that over the next five years revenue will grow at 5% each year, the cost of goods sold will continue to be a fixed percentage of revenue, but due to managerial efficiencies administrative costs will not change. All forms of investment, together with depreciation will have a consistent relationship with revenue. At the end of this five-year period you believe that free cash flow will grow at 2% each year. What is the company worth at the end of 2019, assuming that its weighted average cost of capital is 5%?
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Given the correct option
What is the net effect on a firm's cash flow from changes in net working capital if a new project requires: $ 30,000 increase in inventory, $ 10,000 increase in accounts receivable, $35,000 increase in machinery, and a $20,000 increase in accounts payable?
Q 2.3. An investment costs $1,000 and pays a return of $1,050. What is its rate of return? Q 2.4. An investment costs $1,000 and pays a net re Q 2.6. You buy a stock for $40 per share today. you can sell it for $45 right after the dividend is paid, what would be its dividend yield, what would be its capital gain (also quoted as a capital gain yield), and what would be its total rate of return? It will a dividend of $1 next month. If alck Com rat
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A corporation has $50 billion of Earnings Before Interest and Taxes (EBIT) and $20 billion in interest expenses this year. How much interest expense can the company deduct from its EBIT in the current year? What happens if the company can’t deduct all of its interest expenses in the current year?
Is the company growing? Explain. Be sure to include the percentages you got Millions of US $ $-94 $-38 $-36 $52 $-28 $-33 $-28 Annual Net Income 2022 2021 2020 2019 2018 2017 2016 To calculate growth versus prior years, use this formula: (this year's number minus last year's number)/Last year's number). This will give you the percentage change from the previous year. • • From 2016 to 2017: ((-$33 million)-(-$28 million))/(-$28 million)) *100= 17.86% • From 2017 to 2018: ((-$28 million)-(-$33 million))/(-$33 million) *100= -15.15% From 2018 to 2019: (($52 million)-(-$28 million))/(-$28 million) *100= -285.71% From 2019 to 2020: ((-$36 million)-($52 million))/ ($52 million) *100= -169.23% ● From 2020 to 2021: ((-$38 million)-(-$36 million))/(-$36 million) *100= 5.56% From 2021 to 2022: ((-$94 million)-(-$38 million)/(-$38 million) *100= 147.36% • ●

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