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Paarl Manufacturing As of the end of the month Assets Current assets Total Current Assets Long - term assets ] Total Long - Term Assets
Paarl Manufacturing As of the end of the month Assets Current assets Total Current Assets Longterm assets Total LongTerm Assets Total assets Liabilities and Owners' Equity Current Liabilities Total Current Liabilities Longterm Liabilities Total LongTerm Liabilities Total Liabilities Owners' Equity Total Owners' Equity Total Liabilities and Owners' Equity Now, construct an income statement for this month. Use parentheses or a minus sign for a net loss. Now, construct an income statement for this month. Use parentheses or a minus sign for a net loss. Income Statement Paarl Manufacturing for the month ended Revenues Net income from sales Expenses Total expenses Income before taxes Taxes Net income Now determine whether the company should release some of its retained earnings through dividends at this time by calculating the equity ratio. The equity ratio is Round to three decimal places as needed. Should the company release some of its retained earnings through dividends at this time? A Since the equity ratio is low, the company has a low amount of debt. The company should issue dividends to make its shareholders happy. B Since the equity ratio is high, the company has too much debt. The company should not issue dividends so it can reduce its debt. C Since the equity ratio is high, the company has a low amount of debt. The company should issue dividends to make its shareholders happy. D Since the equity ratio is low, the company has too much debt. The company should not issue dividends so it can reduce its debt.At the end of last month, Paarl Manufacturing had $ in the bank. It owed the bank $ for their mortgage. It also had a working capital loan of $ Its customers owed $ and it owed its suppliers $ The company owned property worth $ It had $ in finished goods, $ in raw materials, and $ in work in progress. Its production equipment was worth $ when new partially paid for by a large government loan due to be paid back in three years but had accumulated a total of $ in depreciation $ worth last month. The company has investors who put up $ for their ownership. It has been reasonably profitable; this month the gross income from sales was $ and the costs associated with sales was only $ Expenses were also relatively low; salaries were $ last month, while the other expenses were depreciation, maintenance at $ advertising at $ and insurance at $ In spite of $ in accrued taxes Paarl pays taxes at percent the company had retained earnings of $ Construct a balance sheet as of the end of this month and income statement for this month for Paarl Manufacturing. Should the company release some of its retained earnings through dividends at this time? First, construct a balance sheet as of the end of this month. Start with the assets section of the balance sheet and then the liabilities and owners' equity sections.
Paarl Manufacturing
As of the end of the month
Assets
Current assets
Total Current Assets
Longterm assets
Total LongTerm Assets
Total assets
Liabilities and Owners' Equity
Current Liabilities
Total Current Liabilities
Longterm Liabilities
Total LongTerm Liabilities
Total Liabilities
Owners' Equity
Total Owners' Equity
Total Liabilities and Owners' Equity
Now, construct an income statement for this month. Use parentheses or a minus sign for a net loss. Now, construct an income statement for this month. Use parentheses or a minus sign for a net loss.
Income Statement
Paarl Manufacturing
for the month ended
Revenues
Net income from sales
Expenses
Total expenses
Income before taxes
Taxes
Net income
Now determine whether the company should release some of its retained earnings through dividends at this time by calculating the equity ratio.
The equity ratio is
Round to three decimal places as needed.
Should the company release some of its retained earnings through dividends at this time?
A Since the equity ratio is low, the company has a low amount of debt. The company should issue dividends to make its shareholders happy.
B Since the equity ratio is high, the company has too much debt. The company should not issue dividends so it can reduce its debt.
C Since the equity ratio is high, the company has a low amount of debt. The company should issue dividends to make its shareholders happy.
D Since the equity ratio is low, the company has too much debt. The company should not issue dividends so it can reduce its debt.At the end of last month, Paarl Manufacturing had $ in the bank. It owed the bank $ for their mortgage. It also had a
working capital loan of $ Its customers owed $ and it owed its suppliers $ The company owned property worth
$ It had $ in finished goods, $ in raw materials, and $ in work in progress. Its production equipment was worth
$ when new partially paid for by a large government loan due to be paid back in three years but had accumulated a total of
$ in depreciation $ worth last month.
The company has investors who put up $ for their ownership. It has been reasonably profitable; this month the gross income from
sales was $ and the costs associated with sales was only $ Expenses were also relatively low; salaries were $
last month, while the other expenses were depreciation, maintenance at $ advertising at $ and insurance at $ In spite of
$ in accrued taxes Paarl pays taxes at percent the company had retained earnings of $
Construct a balance sheet as of the end of this month and income statement for this month for Paarl Manufacturing. Should the company
release some of its retained earnings through dividends at this time?
First, construct a balance sheet as of the end of this month. Start with the assets section of the balance sheet and then the liabilities and
owners' equity sections.
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