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?
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?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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?
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