1. A firm has net income of $95,000. Dividends are $35,000.
   1. How much does the firm put in retained earnings?
2. 2. Give me three different scenarios in the above problem (A) (with funds going into retained earnings) that will make the balance sheet stay balanced. Please give dollar amounts.
3. A firm has $900,000 in revenue. They are in the 34% tax bracket. Expenses (excluding interest) are $125,000 and Interest Expense is $50,000. Preferred dividends are $20,000.  

A. What are the earnings available to common stockholders?

2. Continuing from A: What is the increase to retained earnings for the year if the firm has 10,000 shares of common stock outstanding and declares a $1.15 dividend per share of common stock?

3. A firm has a beginning retained earnings balance of 550,000 and an ending of $750,000. The firm has revenue of $450,000 and expenses of $50,000. They are in the 34% tax bracket.

1. Did they pay any dividends and if so how much?
2. If they have 100,000 shares outstanding, what was the dividend per share?

Answer rating: 100% (QA)

1 Scenario A Net Income 95000 Dividends 35000 Retained Earnings Net Income Dividends Scenario 1 Reta... View the full answer