Perlman Company Had 100,000 Common Shares and 20,000 Preferred Shares

question 111

Multiple Choice

Perlman Company had 100,000 common shares and 20,000 preferred shares at the end of the year just completed.Preferred shareholders received total dividends of $140,000.Common shareholders received total dividends of $210,000.If the dividend payout ratio for the year was 70%,what was the net income for the year?

• A) $147,000.
• B) $287,000.
• C) $300,000.
• D) $440,000.

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Definitions:

Total Liabilities

The sum of all financial obligations or debts that a company owes to outside parties, listed on the balance sheet.

Owner's Equity

The residual interest in the assets of an entity after deducting liabilities, representing ownership interest.

Assets

Assets are resources owned by a company or individual that have economic value and can provide future benefits, like cash, inventory, and equipment.

Increase

An upward movement or growth in value, amount, or any measurable attribute.