If a company receives $12,600 from a stockholder, the effect on the accounting equation would be:Multiple ChoiceAssets decrease $12,600 and equity decreases $12,600.Assets increase $12,600 and liabilities decrease $12,60.Assets increase $12,600 and liabilities increase $12,600,Liabilities increase $12,600 and equity decreases $12,600.Assets increase $12,600 and equity increases $12,600.< Prev2 of 10Next >Type here to search

Cash received from stockholder =$12,600

Answered: If a company receives $12,600 from a…

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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If your company earned net profit of $50 million in Round 7 and paid $10 million in dividends, assuming no change in Total Liabilities and Common Stock, what would the Total Assets be at the end of Round 7? What would the Retained Earnings be at the end of Round 7?
A company has current assets of $616,000 and current liabilities of $221,000. The board of directors declares a cash dividend of $168,000. What is the current ratio after the declaration but before payment? What is the current ratio after the payment of the dividend?
Firm L had net assets at the end of the year of $415,000. The only items affecting stockholders' equity during the year were net income of $76,000 and dividends of $46,000. Required: Calculate Firm L's average stockholders' equity and return on equity (ROE). Choose Addend: Choose Numerator: + 1 Average Stockholders' Equity 1 Choose Addend: /Choose Denominator: Return on Equity 11 = Average Stockholders' Equity Average stockholders' Equity Return on Equity Return on Equity Check my work
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1. From the information below construct an income statement. Calculate the firm’s earnings per share and dividends per share. What can we learn by reviewing a firm’s income statement? What basic relationship can we see in an income statement?
Calculate the Rate of Return on Assets (ROA) for 2011. Disaggregate ROA into the profit margin for ROA and total assets turnover components. Calculate the Rate of Return on Common Stockholders’ Equity (ROCE) for 2011. Disaggregate ROCE into the profit margin for ROCE, total assets turnover and capital structure leverage components.
which of the following transactions and events would result in an improvement in Dividends per share ?A. acquiring cash proceeds from a 5-year interest-only bank loan. B. The recognition of income tax expense owing at the end of the periodC. the receipt of cash for dividends from other entities (increase financing cash flow)A and B onlyA and C onlyB and C onlyAll of the aboveNone of the above
6. From the following data, calculate (a) Gross profit ratio (b) Net profit ratio (c) Return on capital employed. Sales returns RO 300,000 RO 70,000 RO 40,000 RO 40,000 Reserve and Surplus RO 25,000 Sales Opening stock Direct expenses Net profit Closing stock Purchases Share Capital Long term Loans RO 10,000 RO 25,000 RO 140,000 RO 100,000 RO 50,000
If a companys assets decreased $50,000 and it's liabilites decreased $90,000, how much does the stockholders equity increase or decrease? Please explain why as well. Thank you!
For each transaction, indicate the change, if any, in total assets and total equity. If equity changes, indicate whether the change was reflected as a component of net income, or directly within the stockholders' equity portion of the balance sheet. Remember that the change in total assets must agree with the change in total equity. How would I complete the table?
Neumann Company computed earnings per share as follows. Net incomeCommon shares outstanding at year-endNet incomeCommon shares outstanding at year-end Neumann has a simple capital structure. What possible errors might the company have made in the computation? Explain.
Please show working for each question 1. In its most recent financial statements, Nessler Inc. reported $50 million of net income and $550 million of retained earnings. The previous retained earnings were $512 million. How much in dividends were paid to shareholders during the year? Assume that all dividends declared were actually paid. Write out your answer completely. For example, 25 million should be entered as 25,000,000. Round your answer to the nearest dollar, if necessary. 2. Byron Books Inc. recently reported $6 million of net income. Its EBIT was $12.6 million, and its tax rate was 40%. What was its interest expense? (Hint: Write out the headings for an income statement, and then fill in the known values. Then divide $6 million of net income by (1 - T) = 0.6 to find the pretax income. The difference between EBIT and taxable income must be interest expense. Use this same procedure to complete similar problems.) Write out your answer completely. For example, 25 million should…

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