Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Cheyenne Co. invested $930,000 in Ayayai Co. for 25% of its outstanding stock. Ayayai Co. pays out 40% of net income in dividends each
Cheyenne Co. invested $930,000 in Ayayai Co. for 25% of its outstanding stock. Ayayai Co. pays out 40% of net income in dividends each year. Use the information in the following T-account for the investment in Ayayai to answer the following questions. Investment in Ayayal Co. 930,000 118.000 47,200 (a) How much was Cheyenne Co's share of Ayayai Co's net income for the year? Net income (b) What was Ayayai Co's total net income for the year? Total net income $ (c) What was Ayayai Co's total dividends for the year? Total Dividends $ SUI 47,200 (a) How much was Cheyenne Co's share of Ayayai Co's net income for the year? Net income $ (b) What was Ayayai Co's total net income for the year? Total net income $ (c) What was Ayayai Co's total dividends for the year? Total Dividends $ (d) How much was Cheyenne Co's share of Ayayai Co's dividends for the year? Dividends $
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started