Chapter 14, Problem 14.1BYP

To determine

Financial Statements: It includes a statement of income which shows the profitability of the business, balance sheet which shows the financial position in the terms of assets, liabilities, and capital, and cash flow statement which represents the cash flows for the accounting period.

Dividend: The amount that shareholders receive in return of their investment is called as dividend. The distribution of net income of the Company to the shareholders in return of their investment is the dividend.

Stockholder’s Equity: Shareholder’s equity is also known as owner’s equity. It is also a part of balance sheet other than assets and liabilities. It indicates the capital contributed by the owner of his business.

To determine: The amount of dividend on common stock declared by Company A on September 28, 2013.