Keyton Corporation's Net Operating Income in Year 2 Was $43,714

question 44

Multiple Choice

Keyton Corporation's net operating income in Year 2 was $43,714, net income before taxes was $30,714, and the net income was $21,500. Total common stock was $200,000 at the end of both Year 2 and Year 1. The par value of common stock is $4 per share. The company's total stockholders' equity at the end of Year 2 amounted to $1,148,000 and at the end of Year 1 to $1,130,000. The company declared and paid $3,500 dividends on common stock in Year 2. The market price per share was $8.43 at the end of Year 2. Thecompany's dividend payout ratio for Year 2 is closest to: (Round your intermediate calculations to 2 decimal places.)

• A) 0.8%
• B) 1.8%
• C) 16.3%
• D) 11.4%

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Definitions:

Adjust Revenue

The act of modifying the reported amount of revenue to more accurately reflect the earnings of a period, following certain accounting principles and standards.

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Refers to information or data that has been officially announced or presented.

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An accounting principle that states expenses should be recognized in the same period as the revenue they helped generate.

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The act of entering financial transactions or information into accounting records.