Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Question - Computing the Dividend Yield and the Dividend Payout Ratio - The income statement, statement of retained earnings, and balance sheet for Santiago Systems are as follows:
Santiago Systems Income Statement For the Year Ended December 31, 20X2
Amount
Percent
Net sales
$5,345,000
100.0%
Less: Cost of goods sold
(3,474,250)
65.0
Gross margin
$1,870,750
35.0
Less: Operating expenses
(1,140,300)
21.3
Operating income
$730,450
13.7
Less: Interest expense
(27,000)
0.5
Income before taxes
$703,450
13.2
Less: Income taxes (40%)*
(281,380)
5.3
Net income
$422,070
7.9
* Includes both state and federal taxes.
Santiago Systems Statement of Retained Earnings For the Year Ended December 31, 20X2
Balance, beginning of period
$1,205,500
422,070
Total
$1,627,570
Preferred dividends
(40,000)
Dividends to common stockholders
(150,000)
Balance, end of period
$1,437,570
Santiago Systems Comparative Balance Sheets At December 31, 20X1 and 20X2
20X1
20X2
Assets
Current assets:
Cash
$1,900,000
$2,100,000
Marketable securities
350,000
400,000
Accounts receivable (net)
625,000
675,000
Inventories
230,000
240,000
Other
50,000
Total current assets
$3,155,000
$3,465,000
Property and equipment:
Land
$900,000
Building and equipment (net)
1,240,800
1,192,800
Total long-term assets
$2,140,800
Total assets
$5,295,800
$5,557,800
Liabilities and Stockholders' Equity
Current liabilities:
Notes payable, short term
$247,300
$256,230
Accounts payable
250,000
Current maturity of long-term debt
3,000
4,000
Accrued payables
150,000
160,000
Total current liabilities
$640,300
$670,230
Long-term liabilities:
Bonds payable, 9%
300,000
Total liabilities
$940,300
Stockholders' equity:
Preferred stock, $25 par, 8%
$500,000
Common stock, $1.00 par
Additional paid-in capital*
2,500,000
Retained earnings
1,205,500
1,437,570
Total stockholders' equity
$4,355,500
$4,587,570
Total liabilities and stockholders' equity
* For common stock only.
Also, assume that the market price per common share is $20.
Required -
1. Compute the dividends per share.
2. Compute the dividend yield.
3. Compute the dividend payout ratio. Round your answer to two decimal places.
Written essay for Management Accounting & Control course. Each team analyses the performance of the US-Company Coca Cola based on the traditional performance measurement and the EVA - concept.
What is the division's return on investment (ROI) - Handle Fabrication is a division of a major corporation
Why do companies apply overhead to jobs using a predetermined (budgeted) overhead rate instead of applying actual overhead to jobs?
Assume Benson's cost of goods manufactured for 2017 amounted to $1,660,000. How much would it report as cost of goods sold for the year?
Question - The Outdoor Division of World Corporation reported the following results from the past year. What is the division Residual Income
Determine How many units will have to be sold to meet target profit? Assume that next year management wants the company to earn a minimum profit of R200,000.
Prepare a production cost report for the month of July.
Explain what types of costs you plan on using to distinguish the different types of cabinets that will be produced - Examples should include direct costs items, indirect costs items, as well as variable costing.
What would Beauty Supply Company's operating income (loss) be for January and February, respectively, using the variable costing approach?
What other factors should EBP consider before a final decision is made? Calculate the per unit contribution margin for both models
Discuss the specific strategies to reduce materials inventory. Describe the key elements of the Just in Time ("JIT") philosophy
How many items need to be produced for inventory to meet the earnings target if the sales commission is left unchanged at 5%
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd