A company has net income for the year of $20mm. It also pays $5mm in dividends and buys back $2mm of its stock. What changes on the balance sheet and by how much (how is it accounted for)?

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A: Cash flow to creditors refers to movement of  cash and cash equivalents i.e. liquid cash in and out…

Q: Please help with question is solution

A: Step 1: Introduction to the Assets:The assets of the firm are divided into two categories: financial…

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A: Accounting Equation Assets = Liabilities+ Equity.

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A: Net Income is the  difference between the sales revenue and the total Expenses. Sales Revenue =…

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A: Net income is the net profit received by the company after deducting all the expenses, taxes, and…

Q: Give correct answer the question

A: Step 1: Define Variables:Assets (A) = $60,000Liabilities (L) = $25,000Expenses (E) = $5,000Dividends…

Q: Provide answer for the question

A: Step 1:Assets is $60000Liabilities is $25000Expenses is $5000Dividends is $7500Step 2:The extended…

Q: In its first three years of operations, a company has net income of $2,000; $5,000; and $8,000. It…

A: Retained Earnings balance = Beginning Retained Earnings + Net Income - Dividend Paid

Q: A company has current assets of $608,000 and current liabilities of $245,000. The board of directors…

A: Current ratio: = Current assets ÷ current liabilities   •Current assets : $608,000 •Current…

Q: The ending Retained Earnings balance of Lambert Inc. increased by $1.4 million from the beginning of…

A: Formula: Dividends declared and paid = Net income earned - Increase in Ending retained earnings…

Q: If a company has $17,000 in liabilities and $2,500 in equity, then what is the amount of its assets?

A: Accounting equation:Assets = Liabilities + Stockholder\'s equityHere, Liabilities = 17000Equity =…

Q: If the Interest paid is $65; the NI is $60, the Retained Earnings are $25; the Debt at the End of…

A: Cash flow from assets is the aggregate total of all cash flows related to the assets of a business.…

Q: Solve this question

A: Given, Stockholders equity = $416,000 Total liabilities = $208,000 We know that, Stockholders equity…

Q: During the year, Blue Company had revenues of $240,000, expenses of $75,000, and stock issuances of…

A: STATEMENT OF SHAREHOLDERS EQUITYStatement of Shareholders Equity is also Known as Changes in…

Q: Answer the following questions. Hint. Use the accounting equation. a. At the beginning of the year,…

A: Equity shareholders are the owners of the companies that hold shares or stocks. It helps investors…

Q: At the beginning of the year, the balance sheet of The Outlet showed $8 in the common stock account…

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Q: The liabilities of a company at the end of the year are $500,000 and the total stockholders' equity…

A: Ratio analysis is a method of measuring the financial position of the organization with different…

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A: Net income is considered an Excess of revenue over its expenditure during the course of business…

Q: the beginning of the year was P650,000. During the year, ABC earned revenues of P4,500,000 and…

A: The Accumulated profits are also known as retained earnings of the business. The dividend is…

Q: Need help

A: Step 1:Return on assets is calculated to know that how efficiently the company is using its assets…

Q: 1. If Tom wants to know the amount that Subway owes to its creditors at year end, he should look on…

A: Balance sheet: It is the statement that shows the financial position of the company and it has three…

Q: The Andrews Company has just issued $7,066,031 in dividends last year. The effect of this payment on…

A: Balance sheet is one of the financial statement that shows list of final ending balances of assets,…

Q: For the year , movers United has net income of $31,800 , net new equity of $7,500 , and an…

A: The amount of dividend paid can be calculated from the retained earnings added.

Q: Solve

A: Step 1:Computation of the average total assets: Average total assets = (Total assets at the…

Q: 1. Complete the two final columns shown beside each item in Pinnacle Plus's comparative financial…

A: MEANING OF COMPARATIVE HORIZONTAL ANALYSIS OF FINANCIAL STATEMENT In this two period financial…

Q: Hancock Toy Co. had Net Income of $500,000 and paid cash dividends of $200,000 during this year.…

A: Ending equity is calculated using following equation Ending equity for the year = Beginning of the…

Q: Margaret's Maid Service began the year with total assets of $133000 and stockholders' equity of…

A: Stockholders' equity: Stockholders' equity means the net assets available to shareholders after…

Q: For the year, I Company reports revenues of 800,000, expenses of 600,000, and dividends of 50,000.…

A: Retained earnings are the unallocated profits available for distribution to the shareholders. It is…

Q: If your company earned net profit of $50 million in Round 7 and paid $10 million in dividends,…

A: Increase in net profit will result in Increase in assets of company and Increase in retained…

Q: Galveston Corporation’s ending balance of Retained Earnings increased by $2 million from the…

A: Dividend per share: Dividend per share is calculated for Preferred stock as well as Common Stock.…

Q: Answer the following questions. Hint Use the accounting equation. a. At the beginning of the year,…

A: Accounting equation is a mathematical equation that shows relationship between assets, liabilities…

Q: If the beginning balance of retained earnings is $180,000, revenue is $85,000, expenses total…

A: Formula: Ending balance of retained earnings = Beginning balance of retained earnings + Net income -…

Q: What is the current ratio after the declaration but before payment? What is the current ratio after…

A: Current Ratio = Current Assets / Current Liabilities Current Assets = $616000 Current Liabilities =…