At the Beginning of the Current Year, Bard Corporation Had

question 29

Multiple Choice

At the beginning of the current year, Bard Corporation had 400,000 shares of $1 par common stock outstanding and had retained earnings of $11,000,000. During the year, the company earned $5,000,000, declared a 5% stock dividend when the price of stock was $25 per share, and paid a year-end cash dividend of $2 per share. (The cash dividend was paid after the stock dividend had been distributed.) Bard Corporation's retained earnings at the end of the year amount to:

• A) $16,000,000.
• B) $14,660,000.
• C) $14,320,000.
• D) $14,700,000.

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Definitions:

Balanced Funds

Mutual funds that invest in a mix of asset classes, typically stocks and bonds, aiming for a balance between risk and return.

Equities

Shares of stock representing ownership interests in companies, offering potential for capital gains and dividends.

Fixed-income Securities

Financial instruments that pay a fixed amount of income, usually in the form of interest or dividends, like bonds or preferred stocks.

Pass-through Status

A business structure that allows profits to be passed directly to owners or shareholders without being subject to corporate taxes.