D&L Corporation's Profit and Loss Statement Showed a Net Income

question 108

Essay

D&L Corporation's profit and loss statement showed a net income of 9 3/4% or $41 250. Twenty-one percent of net income was paid in corporation tax and 65% of the net income after tax was paid out as dividends to Cindi and Kelsey, who hold shares in the ratio 2 to 3.
a) What was the revenue of D&L Corporation?
b) How much was the after-tax income?
c) How much was paid out in dividends?
d) What percent of net income did Kelsey receive as a dividend?

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Definitions:

Monopoly

A market structure characterized by a single seller who has exclusive control over the supply of a good or service, and where entry of new competitors is obstructed.

Compensating Wage Differential

Additional wages paid to workers to compensate them for undesirable job characteristics, such as poor working conditions or long hours.

Unfavorable Conditions

Circumstances that are not conducive to success or are disadvantageous to achieving goals.

Wage

The fixed regular payment, typically paid on a daily or weekly basis, made by an employer to an employee.