The Following Is a Partial List of Accounts and Balances

question 38

Essay

The following is a partial list of accounts and balances for Hatley Hotels Ltd.for the year ended
October 31, 2013. $$\begin{array} { l r } \text { Capital stock } & \$ 1,500,000 \\\text { Dividends paid } & \$ 60,000 \\\text { Net income for the year } & \$ 600,000 \\\text { Retained earnings balance November } 1,2012 & \$ 2,755,400\end{array}$$ A) Prepare the Retained Earnings section of the Statement of Changes in Equity for Hatley for the year.B) What portion of their earnings did they pay out to shareholders in 2013?
C) How much of their income was retained in the business?
D) What was the shareholders' total direct investment in Hatley? What has been their total indirect investment on the company?
E) How do you think companies decide how much of their income to pay out?

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Definitions:

Null Hypothesis

A theory that there is no statistical significance between specified populations, any observed difference being due to sampling or experimental error.

Golf Balls

Small, hard balls used in the game of golf, designed with dimples to reduce air resistance and increase distance when hit.

PGA

Professional Golfers' Association, an organization for professional golf players, or a reference to the tour operated by this organization.

Degrees Of Freedom

A statistical concept that represents the number of independent values or quantities which can vary in an analysis without violating any constraints.