Fernwood Company is preparing the company's statement of cash flows for the fiscal year just ended. The following information is available: Retained earnings balance at the beginning of the year$238,000? Cash dividends declared for the year 51,250? Proceeds from the sale of equipment 87,200? Gain on the sale of equipment 4650? Cash dividends payable at the beginning of the year 22,550? Cash dividends payable at the end of the year 30,500? Net income for the year 112,750? The amount of cash paid for dividends was:
A. $51,250.
B. $59,700.
C. $61,500.
D. $43,300.
E. $53,050.
Answer: D
You might also like to view...
Marketers can expand markets by discovering and promoting ________
A) subliminal points of interest B) the deficiencies of competitors C) subtle advantages of the product D) new uses of the product E) green technologies
Display ads:
a. decrease brand awareness b. decrease advertising awareness c. decrease purchase intent d. are better at increasing long-term brand-building rather than short-term sales e. none of the above
Lindboe Corporation has provided the following financial data:Balance SheetDecember 31, Year 2 and Year 1AssetsYear 2Year 1Current assets: Cash$190,000 $190,000 Accounts receivable, net 225,000 210,000 Inventory 172,000 190,000 Prepaid expenses 83,000 70,000 Total current assets 670,000 660,000 Plant and equipment, net 877,000 870,000 Total assets$ 1,547,000 $ 1,530,000 Liabilities and Stockholders' Equity Current liabilities: Accounts payable$176,000 $180,000 Accrued liabilities 25,000 30,000 Notes payable, short term 36,000 40,000 Total current liabilities 237,000 250,000 Bonds payable 160,000 160,000 Total liabilities 397,000 410,000 Stockholders' equity:
Common stock, $2 par value 160,000 160,000 Additional paid-in capital 100,000 100,000 Retained earnings 890,000 860,000 Total stockholders' equity 1,150,000 1,120,000 Total liabilities & stockholders' equity$ 1,547,000 $ 1,530,000 Income StatementFor the Year Ended December 31, Year 2Sales (all on account)$1,220,000 Cost of goods sold 700,000 Gross margin 520,000 Operating expenses 458,286 Net operating income 61,714 Interest expense 12,000 Net income before taxes 49,714 Income taxes (30%) 14,914 Net income$ 34,800 Dividends on common stock during Year 2 totaled $4,800. The market price of common stock at the end of Year 2 was $5.46 per share.Required:a. What is the company's times interest earned ratio for Year 2?b. What is the company's debt-to-equity ratio at the end of Year 2?c. What is the company's equity multiplier at the end of Year 2?d. What is the company's net profit margin percentage for Year 2?e. What is the company's gross margin percentage for Year 2?f. What is the company's return on total assets for Year 2?g. What is the company's return on equity for Year 2? What will be an ideal response?
During the course of the audit of FF Financial, you find that some accounting entries have been altered. You believe this may be the result of management fraud and you have determined that the effect of this could be material to the financial statements. What steps should you take in response to the accounting entries and your concern about management fraud?
What will be an ideal response?