A & E Holdings' profit and loss statement showed a net income of 934% of revenue or $29,250. Twenty percent of net income was paid in corporation tax and 75% of the net income after-tax was paid out as dividends to Alice and Emile, who share in the ratio 5 to 3. (a) What was the revenue of A & E Holdings? (b) How much was the after-tax income? (c) How much was paid out in dividends? (d) What percent of net income did Alice receive as a dividend?
A & E Holdings' profit and loss statement showed a net income of 934% of revenue or $29,250. Twenty percent of net income was paid in corporation tax and 75% of the net income after-tax was paid out as dividends to Alice and Emile, who share in the ratio 5 to 3. (a) What was the revenue of A & E Holdings? (b) How much was the after-tax income? (c) How much was paid out in dividends? (d) What percent of net income did Alice receive as a dividend?
Chapter17: Corporations: Introduction And Operating Rules
Section: Chapter Questions
Problem 1BCRQ
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A & E Holdings'
Twenty percent of net income was paid in corporation tax and 75% of the net income after-tax was paid out as dividends to Alice and Emile, who share in the ratio 5 to 3.
(a) What was the revenue of A & E Holdings?
(b) How much was the after-tax income?
(c) How much was paid out in dividends?
(d) What percent of net income did Alice receive as a dividend?
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