Concept explainers
1.
Net income: Net income is the excess amount of revenue which arises after deducting all the expenses of a company. In simple terms, it is the difference between total revenue and total expenses of the company.
To Calculate: The net income.
2.
Dividends: Dividends are the rewards to the stockholders for investing their money in the company. Payment of dividend depends upon the decision of the management.
To Calculate: The dividends.
3.
Liability: Liabilities include the claims of the creditors on the assets of the business. The liability is the obligation of the business.
To Calculate: The liabilities.
4.
Financing activities: Financing activities refer to the activities carried out by a company to mobilize funds to carry out the business activities. The examples for financing activities are purchase of bonds, issuance of common shares, and others.
To Calculate: The net financing activities.
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Financial Accounting
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- A company reports the following: Determine (a) the return on stockholders equity and (b) the return on common stockholders equity. Round percentages to one decimal place.arrow_forwardIf total assets are $20,000 and total liabilities are $12,000, the amount of stockholders’ equity is: A. $32,000. B. $(32,000). C. $(8000). D. $8,000.arrow_forwardUsing the following balance sheet and income statement data, what is the total amount of working capital? Current assets $38500 Net income $43300 Current liabilities 14800 Stockholders' equity 79800 Average assets 157700 Total liabilities 41500 Total assets 130000 Average common shares outstanding was 15600. 2.7 : 10.4 : 13.0 : 12.6 : 1.0arrow_forward
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