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Vortex Corp

question 139

Essay

Vortex Corp.has 250,000 shares of common stock authorized.It has issued 85,000 shares and has reacquired 9,000 of these shares as treasury stock.Vortex subsequently declared a cash dividend of $6 per share.What is the total amount of dividends that were declared?


Definitions:

Cost Method

is an accounting approach used for recording investments, where the investment is recorded at its acquisition cost and adjustments are made for dividends or interest earned and changes in value are not recognized until sold.

Trading Securities

Trading securities are investments in debt or equity that are purchased with the intention of selling them in the near term to realize short-term gains.

Comprehensive Income

The change in equity (net assets) of a business enterprise during a period from transactions and other events from non-owner sources. It includes all revenues, gains, expenses, and losses.

Cash Flows

The aggregate sum of money flowing in and out of an enterprise, crucially influencing its financial fluidity.

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