Question: C. much smaller d. same (1 point) It is typical for the growing companies such as Amazon, Google, Twitter, Zoom etc. not to share their

C. much smaller d. same (1 point) It is typical
C. much smaller d. same (1 point) It is typical for the growing companies such as Amazon, Google, Twitter, Zoom etc. not to share their profits by distributing dividends to shareholders. as they believe that the companies have enough lucrative projects within companies to use cash. Mature companies are known for regular ( quarterly) distributions. For example, Southwest Airlines Co is an air carrier based in Dallas, Texas As of September 2019, it is the largest domestic air carrier in the United States, as measured by the number of domestic originating passengers boarded. In its 10-K (Annual report) for the year ended December 31, 2019, Southwest wrote: "During 2019, the Company continued to return value to its Shareholders. The Company returned $2.4 billion to Shareholders through $372 million in dividend payments and $2.0 billion through four separate accelerated share repurchase programs and other open market share repurchases. ..These purchases will be recorded as treasury share repurchases for purposes of calculating earnings per share." How was accounting equation will be impacted by both the dividend declaration and cash payment? a. Assets (cash) decreased, liabilities increased, equity (retained earnings) decreased. b. Assets (cash) increased, liabilities increased, equity (retained earnings) decreased. c. Assets (cash) decreased, liabgities unaffected, equity (retained earnings) decreased. d. Assets (cash) decreased, liabilities unaffected, equity (retained earnings) increased. e. Assets (cash) decreased, liabilities unaffected, equity (retained earnings) increased. 5. (1 point) There are number of reasons, why the companies will buy back its shares. Southwest. bought back shares paying $2.4 billion dollars in its 2019 accounting year. How Southwest Airlines Co. balance sheet was impacted by the common stock buyback? Assets Stockholders Equity Revenue Expense Net Income Additional Statement o Cash Come Retained Cash flow Stock Paid-in Tramsun stack Capital arnings 324 bion) ($2 4 billion ) (12.4 bilion) 24 billion) ($2.4 billion) ($2.4 billion ) ($24 billion) o (324 bilion) $ 2 4 billion) F (324 bilion) ($2 4 bution) FA Faxing activity M6, Record your conversation 26 MacBook Air 20 FS 988 F4 - F6 F7 DII F8 DD F9 F10 # $ o & 3 4 5 6 7 8 O

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!