ABC Corporation has a total debt of $12,240,000 and their cash balance is equal to 10% of their total assets. The shareholders' equity sectionof the balance sheet of the ACC Corp. is as follows:Common stock$5,000,000Retained earnings$15.760,000Total Shareholder's Equity$20,760,000Required: Calculate the followingA) What is the current legal limit on current dividends?B) What is the practical limit based on liquidity?

Dividends are referred to as the earnings of the company which are distributed to the eligible…

Answered: ABC Corporation has a total debt of…

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter2: Basic Accounting Systems: Cash Basis

Section: Chapter Questions

Problem 10CDQ: Assume that as of January 1, 20Y8, Sylvester Con- suiting has total assets of $500,000 and total...

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Assume that as of January 1, 20Y8, Sylvester Con- suiting has total assets of $500,000 and total assets of $150,000. As of December 31, 20Y8, Sylvester has total liabilities of $200,000 and total stockholders’ equity of $400,000. (a) What was Sylvester’s stockholders’ equity as of January 1, 20Y8? (b) Assume that Sylvester did not pay any dividends during 20Y8. What was the amount of net income for 20Y8?
Houghton Company has the following items: share capital- ordinary, $820,000; treasury shares, $85,000; deferred taxes, $100,000 and retained earnings, $313,000. What amount should Houghton Company report as total equity?
Houghton Company has the following items: common stock, $900,000; treasury stock, $105,000; deferred taxes, $125,000 and retained earnings, $390,000. What total amount should Houghton Company report as stockholders' equity? Group of answer choices $1,060,000. $1,185,000. $1,310,000. $1,395,000.
Malit Corporation has a total shareholders' equity of P1,000,000, including retained earnings of P190,000. The cash balance is P350,000. The maximum cash dividend the corporation can declare and pay is a. P1,000,000. b. P650,000. c. P350,000. d. P190,000.
The following data are extracted from the shareholders’ equity section of the statement of financial position of Del Corporation: Ordinary shares, P2 par value – Balance as of December 31, 2010; P1,000,000. Ordinary shares, P2 par value – Balance as of December 31, 2011; P1,020,000. Share premium - Balance as of December 31, 2010; P500,000. Share premium - Balance as of December 31, 2011; P580,000. Retained earnings - Balance as of December 31, 2010; P1,000,000. Retained earnings - Balance as of December 31, 2011; P1,046,000. During 2011, the corporation declared and paid cash dividends of P150,000 and also declared and issued a share dividend. There were no other changes in shares issued and outstanding during 2011. What is the net income for 2011. Show solution
You have the following balance sheet and information about FedEx: Balance Sheet: Assets Liabilities & Shareholders’ Equity Current Assets $31,000,000 Current Liabilities $28,000,000 PP&E $197,000,000 Long-term Debt (Corporate Bonds) $105,000,000 Equity $95,000,000 Total $228,000,000 Total $228,000,000 FedEx has 16 million shares outstanding. FedEx’s shares have a beta of 1.6 and are currently trading for $15 per share. The expected market risk premium is 7%. The risk-free rate is 1%. The debt is trading at 101% of book value. The coupon rate on existing debt is 5% The yield to maturity on existing debt is 3%. The corporate tax rate is 21%. Compute FedEx’s weighted-average cost of capital (WACC).
Accounting XYZ Corporation had the following balance sheet information: Total assets: $500,000Total liabilities: $200,000Shareholders' equity: $300,000If XYZ Corporation has 50,000 shares outstanding, what is the book value per share?
1. ST Corporation has a total shareholders' equity of P1,000,000, including retained earnings of P175,000. The cash balance is P350,000. How much is the maximum amount of cash dividend that the corporation can declare and pay? a. P175,000 b. P1,000,000 c. P350,000 d. P525,0002. CT, Inc. has 10,000 shares of 8% P50 par preference shares and 100,000 shares of P4par ordinary shares outstanding. Two years’ preference dividends are in arrears. It declared cash dividends large enough to pay preference dividend in arrears, the preference dividends for the current period, and a P1.50 dividend to ordinary. What is the total amount oft he dividend? a. P270,000 b. P260,000 c. P255,000 d. P225,000 3. DY Corporation declared the regular quarterly dividend of P2 per share. It had issued12,000 shares and subsequently reacquired 2,000 shares as treasury stock. What would be the amount of the dividend per quarter?Required to answer. Single choice. a. P4,000 b. P20,000 c.…
The Namleda Corporation has an income statement that indicates thatoperating income is $2,375,486 and pays interest of $100,000 and taxes of$900,000. The corporation currently has an average of 3 million shares ofcommon stock outstanding and 1 million shares of preferred stock, whichpays a dividend of $1.00 per share. What is the corporation’s approximateearnings per share?
Assume that Farm Fresh Produce, Inc. has 725,000 shares of common stock outstanding and that the firm paid a “dividend per share” of $0.35 during the current year. What is the value of the total dividends paid to the common shareholders of Farm Fresh Produce, Inc. during the current year?
The following data are extracted from the shareholders' equity section of 5 points the statement of financial position of Del Corporation: Ordinary shares, P2 par value - Balance as of December 31, 2010; P1,000,000. Ordinary shares, P2 par value - Balance as of December 31, 2011; P1,020,000. Share premium - Balance as of December 31, 2010: P500.000. Share premium Balance as of December 31, 2011; P580,000. Retained earnings - Balance as of December 31, 2010; P1,000,000. Retained earnings - Balance as of December 31, 2011; P1,046,000. During 2011, the corporation declared and paid cash dividends of P150,000 and also declared and issued a share dividend. There were no other changes in shares issued and outstanding during 2011. What is the net income for 2011.
1. The following accounts and their balances are found in the records ofAlamo Corporation: authorized share capital of par P100 is P10,000,000 of which P5,000,000 was issued and its accumulated earnings as of January 1 is P1,275,000. You were given the following additional information: (see attached image for the given. Please answer it. Thank youu so much!) Direction: a) Give the entrics needed for the above information.b) What is the dalance of the free or unrestricted retained earnings as of December 31.

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