Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. a company is instituting a dividend payout policy.

A company is instituting a dividend payout policy. The year-end 2020 balance sheet of company...

60.1K

Verified Solution

Question

Accounting

A company is instituting a dividend payout policy. The year-end 2020 balance sheet of company ABC listed common stock and other paid-in capital at $1,100,000 and retained earnings at $3,400,000. The next year retained earnings were listed at $3,700,000. The firm's net income in 2021 was $900,000. What would you suggest they should consider as they develop a policy? What assumptions and considerations did you make and why?
image
A company is instituting a dividend payout policy. The year-end 2020 balance sheet of company ABC listed common stock and other paid-in capital at $1,100,000 and retained earnings at $3,400,000. The next year retained earnings were listed at $3,700,000. The firm's net income in 2021 was $900,000. What would you suggest they should consider as they develop a policy? What assumptions and considerations did you make and why

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Biology
1.2K views

Imagine a scenario is which 52 protons are pumped across the membrane of the inner mitochondrial...

Biology
1.2K views

Which stretch of double stranded DNA is most likely to be recognized as a restriction...

Statistics
1.2K views

he outcome red red green blue brown yellow orange 0 0 2 0 1 0...

Algebra
1.2K views

Listen A high school band trip will require renting buses and trucks to transport no...

Accounting
1.2K views

Using PwC's Global Guide to Fair Value Measurements, look for the discussion of market participants,...

Accounting
1.2K views

Voyage Sail Makers manufactures sails for sailboats. The company has the capacity to produce 37,000...

Accounting
1.2K views

Test for a difference in average expenses between the Support department and Accounting department using...

Accounting
1.2K views

Abboud Company is planning to introduce a new product with an 80 percent learning rate...

Accounting
1.2K views

Answer the required questions and fill it in the forms below. Thanks! ...

Finance
1.2K views

Over a four-year period, Lakelsha Thompson purchased shares in the Oakmark Investor Class Fund. Using...

Accounting
1.2K views

WHAT IF ANALYSIS DATA (2ND Excel File): CHECK FIGURES: Revenue and Spending...

Accounting
1.2K views

Calculate the cost of food sales under a periodic inventory system for the period ended...