Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Basic Finance Expert

A 10-year loan agreement which the company entered into 3 years ago, provides that dividend payments may not exceed net income earned after taxes subsequent to the date of the agreement. The balance of retained earnings at the date of the loan agreement was $420,000. From that date through December 31, 2011, net income after taxes has totaled $570,000 and cash dividends have totaled $320,000. On the basis of these data, the staff auditor assigned to this review concluded that there was no retained earnings restriction at December 31, 2011.

We are to discuss any additional disclosures in the financial statements and notes that the auditor should recommend to the client.

Can you provide some direction on how to do this or give an ex?

 

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M927493

Have any Question? 


Related Questions in Basic Finance

Grace carter purchased 100 shares of the stock of rock

Grace Carter purchased 100 shares of the stock of Rock Securities one year ago. Last year the price of the stock was $50 per share. In the year, Rock Securities paid a dividend of $2.40 per share. The price of the stock ...

1 why could an insurance company with substantial

1. Why could an insurance company with substantial investments in real estate represent a risk? 2. For an insurance company, describe the difference between GAAP reporting and SAP reporting of deferred policy acquisition ...

A newly issued 10 year bond is valued at par on june 1 2017

A newly issued 10 year bond is valued at par on June 1, 2017. The bond has an annual coupon of 8.0 percent. On June 1 2020, the bond has a yield to maturity of 7.1 percent. The first coupon is invested at 8.0 percent and ...

Please in your own words what are dividends what are some

Please, in your own words. What are dividends? What are some different types of dividends?

Use the is-mp model including the output gap phillips curve

Use the IS-MP model (including the output gap Phillips curve) to analyze how the Federal Reserve would respond to a significant positive demand shock. Assume that the economy was in long-run macroeconomic equilibrium bef ...

A property is expected to have noi of 100000 the first year

A property is expected to have NOI of $100,000 the first year. The NOI is expected to increase by 3 percent per year thereafter. The appraised value of the property is currently $1 million and the lender is willing to ma ...

List and briefly explain the important contributions

List and briefly explain the important contributions provided by futures exchanges ? How do locals differ from commission brokers? How do the latter differ from futures commission merchants? Explain the basic differences ...

1 generate three examples of nominal variables and three

1. Generate three examples of nominal variables and three examples of quantitative variables that were not mentioned in the chapter. 2. On a piece of paper make two columns. In one column list all of the advantages of fr ...

1 what is the price of an 7 bond with 10 years to maturity

1) What is the price of an 7% bond with 10 years to maturity that is trading at a yield of 7%? Assume the face value is $1000 and coupon is paid semi-annually.(Keep your answer to 2 decimal places.) 2) What is the modifi ...

What is the relation between a strategy and an objective

What is the relation between a strategy and an objective? How are comparative advantages different from competitive advantages? What is a strategic plan? What is a financial plan, and how does it relate to a company's st ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

WalMart Identification of theory and critical discussion

Drawing on the prescribed text and/or relevant academic literature, produce a paper which discusses the nature of group

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro