(b) What was Stellar Co.'s total net income for the year?Total net incomeTotal DividendstA(c) What was Stellar Co's total dividends for the year?Dividends396000$128400(d) How much was Pronghorn Co.'s share of Stellar Co's dividends for the year?32100 Pronghorn Co. invested $1,070,000 in Stellar Co. for 25% of its outstanding stock. Stellar Co. pays out 30% of net income in divideneeach year.Use the information in the following T-account for the investment in Stellar to answer the following questions.Investment in Stellar Co.1,070,00099,000(a) How much was Pronghorn Co.'s share of Stellar Co's net income for the year?Net income29,700Total net income(b) What was Stellar Co's total net income for the year?428000Total Dividends. $396000(c) What was Stellar Co's total dividends for the year?128400

a) Pronghorn Co.'s share of Stellar Co.'s net income for the year is represented by the "Share of…

Answered: Pronghorn Co. invested $1,070,000 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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SOLVE THE FOLLOWING PROBLEM OF ACCOUNTING 1. Mr. Alfredo Mendaz gives us a loan of $160,000.00, for six months, charging us 42% annually. Make the entry at the time of the loan, and at the time of payment. 2. An entity obtains a net distributable profit of $175,00.00. The shareholders' meeting decrees a dividend of $50.00 per share, for each of the 2,500 subscribed shares. 3. Suppose that, at the end of the year, a bill of exchange for $160,000.00 is owed in favor of our creditor Carlos Pérez, due five months ago, on which the company has to pay interest Moratoriums of 6% per month. 4. An entity receives cash equivalent to 35% from a customer on a merchandise order with a value of $200,000.00. make the entry at the time of the advance, and when full payment is made and the merchandise is delivered. 5. Calculate the expenses and taxes pending payment, for each of the following concepts. CONCEPT salaries rents payroll taxes IMSS, SAR E fees INFONAVIT Electric energy service telephone…
Provided that Shareholders' equity in a firm is $500. The firm owes a total of $400 of which 75 percent is payable this year. In addition credit sales to customers total 5000 of which 80 percent is due this year The firm has net fixed assets of $600. What is the amount of the net working capital?
What is the net asset value of an investment company with $10,400,000 in assets, $590,000 in current liabilities, and 1,110,000 shares outstanding? Round your answer to the nearest cent. $ ..... per share
Xijiang issued 1000 shares at the beginning of fiscal year (t=0), and the net profit at the end of fiscal year (t=1) is expected to be 2million won. (zhuxijiang plans to pay a total of 800000 won as dividends to shareholders at the end of the accounting year, and the rest will be retained for internal reinvestment. (Zhou) the average self capital profit margin (roe= current net profit of the accounting year / self capital at the beginning of the accounting year) of Xijiang in each accounting year will be maintained at 20%. (shares) Xijiang's dividend policy and self capital profit margin will continue to be maintained. The annual required rate of return (RRR) of the enterprise in the market is 16%. If the dividend growth rate (or profit growth rate) of the company is equal to the return on self capital (ROE) multiplied by the internal retention rate, please answer the following questions. The dividend discount model is used to calculate the stock price at the beginning of the…
At the beginning of the year, the Carolyn Brewery of Melbourne, Australia purchased a 25 percent ownership interest in Amber Pub of Brisbane, Australia. The investment cost $12 million. At year- end, Amber Pub declared and paid cash dividends to shareholders totaling $320,000, after reporting earnings of $2.0 million. A. Calculate the income statement effect of Carolyn's investment in Amber Pub as of year-end. B. Calculate the book value of Carolyn's equity investment in Amber Pub at year-end. C. Calculate the book value of Carolyn's equity investment in Amber Pub at year-end assuming that Down Under reported a loss of $1.2 million instead of a profit of $2.0 million and still paid vidend $320,000.
An investor company owns 40% of the outstanding common stock of an investee company, which allows the investor to exercise significant influence over the investee. The Equity Investment was reported at $1,050,000 as of the end of the previous year. During the year, the investor received dividends of $110,000 from the investee. The investee reports the following income statement for the year: Revenues Expenses $2,700,000 1,800,000 900,000 100,000 Comprehensive income $1,000,000 a. How much equity income should the investor report in its net income (i.e., as part of the current year income statement)? Net income Other comprehensive income $0 b. What amount should the investor report for the Equity Investment in its balance sheet at the end of the year? $0
Griffins Goat Farm, Inc., has sales of $670,000, costs of $332,000, depreciation expense of $76,000, interest expense of $48,000, a tax rate of 23 percent, and paid out $45,000 in cash dividends. The firm has 27,800 shares of common stock outstanding. a. What are the earnings per share figure? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. What are the dividends per share figure? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) a. Earnings per share b. Dividends per share
Smashed Pumpkins Company paid $208 in dividends and $631 in interest over the past year. The company increased retained earnings by $528 and had accounts payable of $702. Sales for the year were $16,580 and depreciation was $756. The tax rate was 40 percent. What was the company's EBIT? Multiple Choice $6,632 $1,511 $1,227 $1,858 $2,129
During the year, a merchandising company had the following transactions: Generated 300.000 TL revenue and incurred 225.000 TL expense. Issued new shares of 20.000 at a price of 1,2 TL (par value is 1 TL). Repurchased 10.000 of these new shares at a price of 1,1 TL. Sold these repurchased shares at a price of 0,5 TL. Revalued its headquarters building as well as its one of the rental properties. The increases in the relevant equity and income items have been found to be 15.000 TL and 20.000 TL. Suppose that the ending retained earnings balance in the Statement of Changes in Shareholders Equity is 105.000 TL. Then, what was the opening balance of the retained earnings at the beginning of the year? a) 10.000 TL b) 16.000 TL c) 20.000 TL d) 26.000 TL
DEF Company is expected to have net income of $250,000 this year. The company traditionally pays out 40 percent of its net income as a dividend. DEF started the year with retained earnings of $490,500. What is their expected retained earnings at the end of the year?

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