ACC 5110 (questions and answers with grade A+ and verified solutions)

Nina Corp. had the following net income (loss) the first three years of operation: $7,200, ($1,000), and $2,400. If the Retained Earnings balance at the end of year three is $500, what was the total amount of dividends paid over these three years? - ANS$8,100 (+2400-500) Use the following appropriate amounts to calculate net income: Revenues, $11,300; Liabilities, $4,800; Expenses, $4,100; Assets, $17,400; Dividends, $1,700. - ANSNet Income = Revenues ($11,300) − Expenses ($4,100) Net Income = $7,200. Given the information below about Thomas Corporation, what was the amount of dividends the company paid in the current period? Beginning retained earnings $40,000 Ending retained earnings $101,000 Decrease in cash $10,300 Net income $96,000 Change in stockholders' equity $21,000 - ANSDividends = Beginning Retained Earnings ($40,000) + Net Income ($96,000) − Ending Retained Earnings ($101,000) Dividends = $35,000. On January 1, Gucci Brothers Inc. started the year with a $695,000 balance in retained earnings and a $597,000 balance in common stock. During the year, the company earned net income of $109,000, paid a dividend of $14,100, and issued more common stock for $25,500. What is total stockholders' equity at the end of the year? - ANSStockholders Equity = Common Stock ($597,000 + $25,500) + Retained Earnings ($695,000 + $109,000 − $14,100) Stockholders Equity = $1,412,400. Given the information below about David Corporation, what was the amount of dividends the company paid in the current period? Beginning retained earnings $42,000 Ending retained earnings $91,000 Increase in cash $35,000 Net income $82,000 Change in stockholders' equity $43,000 - ANSDividends = Beginning Retained Earnings ($42,000) + Net Income ($82,000) − Ending Retained Earnings ($91,000) Dividends = $33,000.