Your company has issued common but no preferred stock. Sales for the year = $9,000,000 while cost
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Question:
Your company has issued common but no preferred stock. Sales for the year = $9,000,000 while cost of goods sold = $6,000,000. You are in a 21% Federal tax bracket. You decided to keep some of the profits in the company for growth and accordingly the retained earnings balance increased $300,000. Your company paid common dividends of $2.00 per share on the 50,000 shares of stock outstanding.OK, given all this, what was your company's earnings for the year?
a) $4,000,000
b) $400,000
c) $316,000
d) $200,000
e) $100,000
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