A Company Has 200,000 Shares of $1 Par Value Common

question 107

Multiple Choice

A company has 200,000 shares of $1 par value common stock and 20,000 shares of 7%,$100 par,cumulative preferred stock outstanding.The balance in Retained Earnings account at the beginning of the year was $1,500,000 and one year's dividends were in arrears.Net income for the current year was $2,000,000.If the company paid a dividend of $3 per share on its common stock,what is the balance in Retained Earnings account at the end of the year?

• A)$3,500,000
• B)$2,900,000
• C)$2,760,000
• D)$2,620,000
• E)$620,000

Comprehend the interrelationship between self-esteem, self-talk, visualization, physical reactions, and behavior in the motivational cycle.

Understand the requirements and expectations for professional advancement and the role of advanced education.

Recognize the complexity and ambiguity often inherent in ethical decision-making.

Identify factors contributing to academic disengagement and dropout rates.

---

Definitions:

Debt-Equity Ratio

The comparative measure of equity and debt in the financing framework for a company's assets.

Dividend Payout Ratio

The percentage of earnings paid to shareholders in dividends, used to measure the extent to which a company returns profits to its shareholders.

Fixed Assets

Long-term tangible assets that a company owns and uses in its operations to generate income, such as buildings, machinery, and equipment.