MC Qu. 86 Mayfair Corporation has outstanding ... Mayfair Corporation has outsta
ID: 2360478 • Letter: M
Question
MC Qu. 86 Mayfair Corporation has outstanding ...
Mayfair Corporation has outstanding 100,000 shares of $1 par value common stock as well as 24,000 shares of 11.0%, $100 par value cumulative preferred stock. At the beginning of the year, the balance in retained earnings was $850,000, and one year's dividends were in arrears. Net income for the current year is $540,000. Compute the balance in retained earnings at the end of the year if Mayfair Corporation pays a dividend of $3.4 per share on its common stock this year.
Mayfair Corporation has outstanding 100,000 shares of $1 par value common stock as well as 24,000 shares of 11.0%, $100 par value cumulative preferred stock. At the beginning of the year, the balance in retained earnings was $850,000, and one year's dividends were in arrears. Net income for the current year is $540,000. Compute the balance in retained earnings at the end of the year if Mayfair Corporation pays a dividend of $3.4 per share on its common stock this year.
Explanation / Answer
$1,050,000.
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