On its 12/31/18 balance sheet, Barnes Inc showed $510 million of retained earnings, and exactly that same amount was shown the previous year. Assuming that no earnings restatements were issued, which of the following statements is CORRECT?
A. If the company lost money in 2018, it must have paid dividends.
B. The company must have had zero net income in 2018.
C. The company must have paid out half of its 2018 earnings as dividends.
D. The company must have paid no dividends in 2018.
E. Dividends could have been paid in 2018, but they would have had to equal the earnings for the year.
Answer: E
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A) Background or statement of the problem B) Solution C) Scope D) Purpose E) Report organization
All of the following are designed to control exposures from subversive threats except
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Balerio Corporation's relevant range of activity is 7,000 units to 11,000 units. When it produces and sells 9,000 units, its average costs per unit are as follows:??Average Cost per Unit?Direct materials$6.80?Direct labor$3.20?Variable manufacturing overhead$1.60?Fixed manufacturing overhead$13.50?Fixed selling expense$2.25?Fixed administrative expense$1.80?Sales commissions$0.50?Variable administrative expense$0.40Required:a. For financial reporting purposes, what is the total amount of product costs incurred to make 9,000 units?b. If 10,000 units are sold, what is the variable cost per unit sold?c. If 10,000 units are sold, what is the total amount of variable costs related to the units sold?d. If the selling price is $18.20 per unit, what is the contribution margin
per unit sold?e. What incremental manufacturing cost will the company incur if it increases production from 9,000 to 9,001 units? What will be an ideal response?