Pronghorn Co. invested $920,000 in Stellar Co. for 25% of its outstanding stock. Stellar Co. pays out 30% of net income in dividends each year. Use the information in the following T-account for the investment in Stellar to answer the following questions. Investment in Stellar Co. 920,000 110,000 33,000 (a) How much was Pronghorn Co's share of Stellar Co.'s net income for the year? Net income $ (b) What was Stellar Co.'s total net income for the year? Total net income $ (c) What was Stellar Co's total dividends for the year? Total Dividends $ (d) How much was Pronghorn Co's share of Stellar Co's dividends for the year? Dividends $

Pronghorn Co. invested $920,000 in Stellar Co. for 25% of its outstanding stock. Stellar Co. pays out 30% of net income in dividends each year. Use the information in the following T-account for the investment in Stellar to answer the following questions. Investment in Stellar Co. 920,000 110,000 33,000 (a) How much was Pronghorn Co's share of Stellar Co.'s net income for the year? Net income $ (b) What was Stellar Co.'s total net income for the year? Total net income $ (c) What was Stellar Co's total dividends for the year? Total Dividends $ (d) How much was Pronghorn Co's share of Stellar Co's dividends for the year? Dividends $

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter15: Financial Statement Analysis

Section: Chapter Questions

Problem 55E: Rebert Inc. showed the following balances for last year: Reberts net income for last year was...

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Rebert Inc. showed the following balances for last year: Reberts net income for last year was 3,182,000. Refer to the information for Rebert Inc. above. Also, assume that the dividends paid to common stockholders for last year were 2,600,000 and that the market price per share of common stock is 51.50. Required: 1. Compute the dividends per share. 2. Compute the dividend yield. (Note: Round to two decimal places.) 3. Compute the dividend payout ratio. (Note: Round to two decimal places.)
Grouper Co. invested $1,060,000 in Monty Co. for 25% of its outstanding stock. Monty Co. pays out 30% of net income in dividends each year.Use the information in the following T-account for the investment in Monty to answer the following questions. Investment in Monty Co. 1,060,000 121,000 36,300 (a) How much was Grouper Co.’s share of Monty Co.’s net income for the year? Net income $enter Grouper’s net income in dollars (b) What was Monty Co.’s total net income for the year? Total net income $enter the total net income of MontyCo. for the year (c) What was Monty Co.’s total dividends for the year? Total Dividends $enter the total dividends of MontyCo. for the year (d) How much was Grouper Co.’s share of Monty Co.’s dividends for the year? Dividends $enter the dollar amount of dividends for Grouper Co.
Bonita Co. invested $910,000 in Windsor Co. for 25% of its outstanding stock. Windsor Co. pays out 30% of net income in dividends each year.Use the information in the following T-account for the investment in Windsor to answer the following questions. Investment in Windsor Co. 910,000 99,000 29,700 (a) How much was Bonita Co.’s share of Windsor Co.’s net income for the year? Net income $enter Bonita’s net income in dollars (b) What was Windsor Co.’s total net income for the year? Total net income $enter the total net income of WindsorCo. for the year (c) What was Windsor Co.’s total dividends for the year? Total Dividends $enter the total dividends of WindsorCo. for the year (d) How much was Bonita Co.’s share of Windsor Co.’s dividends for the year? Dividends $enter the dollar amount of dividends for Bonita Co.
Riverbed Co. invested $980,000 in Marin Co. for 25% of its outstanding stock. Marin Co. pays out 40% of net income in dividends each year. Use the information in the following T-account for the investment in Marin to answer the following questions. Investment in Marin Co. 980,000 108,000 43,200
Parent Co. invested $1,000,000 in Sub Co. for 25% of its outstanding stock. Sub Co. pays out 40% of net income in dividends each year. Instructions Use the information in the following T-account for the investment in Sub to answer the following questions. Investment in Sub Co. 1,000,000 110,000 44,000 a. How much was Parent Co.'s share of Sub Co.'s net income for the year? b. What was Sub Co.'s total net income for the year? c. What was Sub Co.'s total dividends for the year? d. How much was Parent Co.'s share of Sub Co.'s dividends for the year?
Gympa reported on its income statement a net income $647,000 for the year ended December 31 before considering the following: a. During the year, Gympa purchased trading securities b. At year-end , the fair value of the investment portfolio was $50,000 lesshan the cost c. The balance of Retained Earnings was $792,000 on January 1 d. Gympa paid $67,000 in cash dividends during the year. Using the above data, calculate the balance of Retained Earnings on Decemeber 31.
A. Gympa reported on its income statement a net income $647,000 for the year ended December 31 before considering the following: During the year, Gympa purchased trading securities At year-end , the fair value of the investment portfolio was $50,000 lesshan the cost The balance of Retained Earnings was $792,000 on January 1 Gympa paid $67,000 in cash dividends during the year. Using the above data, calculate the balance of Retained Earnings on Decemeber 31. A. The Nile House of Fashion has Asset Turnover of 2.65X. What does it mean? That each dollar of Nile’s asset generates $2.25 in sales That each dollar of stockholders’ equity generates $2.25 of profit That Nile’s EPS is $2.25 That each dollar of Nile’s Equity generates a deficit of $2.25 None of the above.
Company E reports net income of $100,000 for 2015. Assume the income is earned evenly throughout the year. Dividends of $10,000 are paid on December 31. What will Company R report as investment income under the following ownership situations, if: a. Company R owns a 10% interest from July 1 to December 31? b. Company R owns a 10% interest from January 1 to June 30 and a 25% interest from July 1 to December 31? c. Company R owns a 30% interest from January 1 to June 30 and a 10% interest from July 1 to December 31?
Monty Co. invested $920,000 in Flounder Co. for 25% of its outstanding stock. Flounder Co. pays out 40% of net income in dividends each year.Use the information in the following T-account for the investment in Flounder to answer the following questions. Investment in Flounder Co. 920,000 110,000 44,000 (a) How much was Monty Co.’s share of Flounder Co.’s net income for the year? (b) What was Flounder Co.’s total net income for the year? (c) What was Flounder Co.’s total dividends for the year? (d) How much was Monty Co.’s share of Flounder Co.’s dividends for the year?
Vince Company invested P2,000,000 in Alfred Company for 25% interest. Alfred paid out 40% of net income in dividends each year. The investment account showed the following details: Initial cost P5,000,000 Debit to the investment account 1,000,000 Credit to the investment account ( 400,000) Investment balance at year-end P5,600,000 What amount of net income was reported by Alfred? a. P4,000,000 b. P1,600,000 c. P2,400,000 d. P5,600,000
The income statement for Dodson Corporation reported net income of $22,400 for the year ended December 31 before considering the following: During the year the company purchased available-for-sale securities. At year end, the fair value of the investment portfolio was $2,100 more than cost. The balance of Retained Earnings was $83,000 on January 1. . Dodson Corporation paid $9,000 in cash dividends during the year. Calculate the balance of Retained Earnings on December 31. 51,600
The income statement for Blue Ocean reported net income of $22,400 for the year ended December 31 before considering the following: During the year, the company purchased available-for-sale securities At year end, the fair value of the investment portfolio was $2,100 more than the cost The balance of Retained Earnings was $83,000 on January 1 Blue Ocean paid $9,000 in cash dividends during the year Required : What is the balance of Retained Earnings as of December 31? Calculate it: