Question

In: Finance

The pro forma financials for a firm show the following. The retained earnings balance for this...

The pro forma financials for a firm show the following. The retained earnings balance for this firm at the end of August 2021 is $150,000. In September 2021, this firm pays a quarterly cash dividend of $30,000 and has net income after taxes equal to $25,000. This firm neither sells nor buys stocks or bonds, or any other securities, during this time. The retained earnings balance for this firm at the end of September 2021 is:   

a.

$95,000
b.

$155,000
c.

$175,000
d.

$145,000

Solutions

Expert Solution

Ending retained earnings balance Beginning retained earnings + Net income during the year - Dividend paid
Ending retained earnings balance 150000+25000-30000
Ending retained earnings balance $145,000
Thus, retained earnings balance for firm at end of September 2021 is $145,000

jeff jeffy answered 2 years ago
Next > < Previous

Related Solutions

The pro forma financials for a firm show the following. The retained earnings balance for this...
The pro forma financials for a firm show the following. The retained earnings balance for this firm at the end of August 2021 is $150,000. In September 2021, this firm pays a quarterly cash dividend of $30,000 and has net income after taxes equal to $25,000. This firm neither sells nor buys stocks or bonds, or any other securities, during this time. The retained earnings balance for this firm at the end of September 2021 is:   
Pro forma retained earnings - ex. #2 The bottom line on the pro forma P&L for...
Pro forma retained earnings - ex. #2 The bottom line on the pro forma P&L for the fiscal year that has just begun is $500,000. The top line is $3.5 million. The current balance in retained earnings is $2,100,000. A dividend payout ratio of 40% is anticipated. a) [review] What is the net profit margin? b) [review] Explain the answer to a) above. c) Forecast retained earnings at the end of the fiscal year that has just begun. d) Which...
​(Pro forma balance sheet construction​) Use the following​ industry-average ratios to construct a pro forma balance...
​(Pro forma balance sheet construction​) Use the following​ industry-average ratios to construct a pro forma balance sheet for​ Phoebe's Cat Foods​ Inc.: Total asset turnover   1.6 times Average collection period (assume 365-day year)   16 days Fixed asset turnover   6 times Inventory turnover (based on cost of goods sold)   2 times Current ratio   2.0 times Sales (all on credit)   $3,000,000 Cost of goods sold   75% of sales Debt ratio   60% Fill in the assets section of the pro forma balance sheet....
​(Pro forma balance sheet construction​) Use the following​ industry-average ratios to construct a pro forma balance...
​(Pro forma balance sheet construction​) Use the following​ industry-average ratios to construct a pro forma balance sheet for​ Karen's Beauty​ Products, Inc.: Total asset turnover 1.5 times Average collection period​ (assume 365-day​ year) 16 days Fixed asset turnover 6 times Inventory turnover​ (based on cost of goods​ sold) 2 times Current ratio 1.9 times Sales​ (all on​ credit) ​$5,000,000 Cost of goods sold 70​% of sales Debt ratio 40​% . Fill in the assets section of the pro forma balance...
Using the income statement from Folder Factory Financials Folder Factory Financials , prepare a pro forma...
Using the income statement from Folder Factory Financials Folder Factory Financials , prepare a pro forma income statement for 2016 if the company projects sales to be $60,000 in 2016. Balance Sheet Folder Factory, Inc. December 31, 2014 and 2015 2015 2014 Assets Cash $ 1,000 $     500 Accounts receivable 5,000 4,500 Inventory 7,000 6,000 Total current assets $13,000 $11,000 Gross fixed assets $20,000 $15,000 Less: Accumulated depreciation 10,000     9,000 Net fixed assets $10,000 $ 6,000 Total assets $23,000...
Pro forma financial information: A) usually focsuses on pro forma earnings, usually on a non-GAAP basis...
Pro forma financial information: A) usually focsuses on pro forma earnings, usually on a non-GAAP basis b) is always presented on a generally accepted accounting principles (GAAP) basis c)is illegal d) is found in the statement of stockholders' equity Mandalay had cash flow from operations (in millions) of $358, cash flows from investments of -$160, cash flows from financing of -$198, and net income of $53. Mandalay had free cash flow of: a) $198 b) $160 c) $251 d)$0
the balance in retained earnings at the end of the year is determined by retained earnings...
the balance in retained earnings at the end of the year is determined by retained earnings balance at the ''beginning of the year: a. plus revenues, minus liabilities b. plus net income, minus dividends c. plus assets, minus liabilities d. plus accounts, minus deferrals
A. What do pro forma financial statements show? B. What are pro forma financial statements based...
A. What do pro forma financial statements show? B. What are pro forma financial statements based on? C. What are the strategic benefits of making financial projections on pro forma statements?
The CFO of Morgan Co. has created the firm s pro forma balance sheet for the...
The CFO of Morgan Co. has created the firm s pro forma balance sheet for the next fiscal year. Sales are projected to grow by 15 percent to $602 million. Current assets, fixed assets, and short-term debt are 22 percent, 65 percent, and 15 percent of sales, respectively. Morgan Co. pays out 30 percent of its net income in dividends. The company currently has $180 million of long-term debt and $140 million in common stock par value. The profit margin...
could someone show how to do the retained earnings and balance sheet?
could someone show how to do the retained earnings and balance sheet?
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT