Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Financial Accounting Expert

Problem: A.E. Neuman Corporation Statement of Cash Flows for Year Ended December 31, 2010

Given the financial information for the A.E. Neumann Corporation please provide answer the following problems.

A: Make a Statement of Cash Flows for year ended December 31, 2010.
B: What is dividend payout ratio for 2010?
C: If we raised the dividend payout ratio to 100%, what would occur to retained earnings at year end 2010?

Assets                                                 2009                                             2010

Cash                                                  45,000                                           50,000
Marketable Securities                           175,000                                         160,000
Accounts Receivable                            140,000                                         110,000
Inventories                                         230,000                                         350,000
Investments                                       170,000                                           55,000
Plant & Equipment                             1,500,000                                       1,750,000
Less Accum Deprec                            -450,000                                         -600,000
Net Plant & Equipment                          850,000                                          950,000
Total Assets                                    1,810,000                                        1,900,000


Liabilities & Stockholders’ Equity                       2009                                     2010

Accounts Payable                                        110,000                                  85,000
Notes Payable                                             150,000                                 140,000
Accrued Expense                                           80,000                                  35,000
Income Tax Payable                                       10,000                                  15,000
Bonds Payable                                             860,000                                955,000
Common Stock (100,000 shares $1 par)            100,000                               100,000
Capital Pain in Excess Par                               100,000                               100,000
Retained Earnings                                          400,000                               470,000
Total Liabilities & Stockholders’ Equity             1,810,000                            1,900,000

Sales                                                                                 7,000,000
Less Cost of Goods Sold                                                        4,200,000
Gross Profit                                                                         2,800,000
Less Selling & Administrative Expense                                         260,000
Operating Profit                                                                   2,540,000
Less depreciation Expense                                                       150,000
Earnings before Interest & Taxes                                            2,390,000
Less Interest Expense                                                             160,000
Earnings before Taxes                                                          2,230,000
Less Taxes (50%)                                                               1,150,000
Net Income                                                                       1,150,000
Dividends Paid                                                                    1,045,000

Financial Accounting, Accounting

  • Category:- Financial Accounting
  • Reference No.:- M93802

Have any Question? 


Related Questions in Financial Accounting

Assignmentcomprehensive receivables problem connecticut inc

Assignment (Comprehensive Receivables Problem) Connecticut Inc. had the following long-term receivable account balances at December 31, 2006. Note receivable from sale of division $1,800,000 Note receivable from officer ...

Assignmentpart 11crimpson company had the following petty

Assignment Part 1 1. Crimpson Company had the following petty cash transaction during January 2016: Jan. 1 Established a petty cash fund of $200 12 Reimbursed the fund for the following expenses: Supplies expense $65.00 ...

Assignmentbullwhen a company owns inventory it has to

Assignment • When a company owns inventory, it has to decide how to consistently value the inventory sold and on hand. Four inventory valuation methods are available to help the organization effectively value its invento ...

On january 1 2004 digital inc leased heavy machinery from

On January 1, 2004, Digital, Inc. leased heavy machinery from Young Leasing Company. The terms of the lease require annual payments of $20,000 for twenty years beginning on December 31, 2004. The interest rate on the lea ...

Consider four different stocks all of which have a required

Consider four different stocks, all of which have a required return of 18.5 percent and a most recent dividend of $3.65 per share. Stocks W, X, and Y are expected to maintain constant growth rates in dividends for the fo ...

Assignment excel spreadsheet projecton december 31 2016

Assignment: Excel Spreadsheet Project On December 31, 2016, Carson Company rendered services to Lincoln Corporation at an agreed price of $125,939, accepting $50,000 down and agreeing to accept the balance in three equal ...

Financecarefully work through the analysis of the companys

Finance Carefully work through the analysis of the company's short term financial situation. You will see that the company will be in a negative cash situation three quarters from now. As an adviser to the company you ar ...

Assignment audrey jhingrees ice cream parloraudrey jingle

Assignment: Audrey Jhingree's ice cream parlor Audrey Jingle opened an ice cream parlor in a university town. The parlor specializes in ice cream combinations named after popular professors in the business department of ...

Assignmentangies empanadas cvp and cost behaviortired of

Assignment Angie's Empanadas: CVP and Cost Behavior Tired of the corporate life Angie opened Angie's Empanadas in on April 1st near a large university campus. She had long been told that her empanadas were the best in to ...

Effective-interest versus straight-line bond amortization

(Effective-Interest versus Straight-Line Bond Amortization) On January 1, 2013, Phantom Company acquires $200,000 of Spiderman Products, Inc. 9% bonds at a price of $185,589 The interest is payable each December 31, and ...

  • 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