In the previous problem, suppose Raines Umbrella Corp. paid out $45,000 in cash dividends. Is this possible? If spending on net fixed assets and net working capital was zero, and if no new stock was issued during the year, what was the change in the firm’s long-term debt account?
Answer to relevant QuestionsCusic Industries had the following operating results for 2010; sales _ $25,700; cost of goods sold _ $18,400; depreciation expense _ $3,450; interest expense _ $790; dividends paid _ $1,100. At the beginning of the year, net ...On the balance sheet, the net fixed assets (NFA) account is equal to the gross fixed assets (FA) account, which records the acquisition cost of fixed assets, minus the accumulated depreciation (AD) account, which records the ...The 2009 balance sheet of Maria's Tennis Shop, Inc., showed $730,000 in the common stock account and $6.2 million in the additional paid-in surplus account. The 2010 balance sheet showed $775,000 and $6.9 million in the same ...Draiman Company has a debt-equity ratio of 0.75. Return on assets is 10.4 percent, and total equity is $900,000. What is the equity multiplier? Return on equity? Net income? Y3K, Inc., has sales of $4,350, total assets of $3,218, and a debtequity ratio of 0.65. If its return on equity is 15 percent, what is its net income?
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