Brief Exercise 13-14 Crane Company has stockholders’ equity of $428,100 and net

Question

Brief Exercise 13-14 Crane Company has stockholders’ equity of $428,100 and net income of $74,200. It has a payout ratio of 19% and a return on assets of 20%. How much did Crane pay in cash dividends, and what were its average total assets? (Round answers to 0 decimal places, e.g. 5,275.)
Cash dividends $ Average total assets $
Brief Exercise 13-14 Crane Company has stockholders' equity of $428,100 and net income of $74,200. It has a payout ratio of 19% and a return on assets of 20%. How much did Crane pay in cash dividends, and what were its average total assets? (Round answers to O decimal places, e.g. 5,275.) Cash dividends* Average total assets Click if you would like to Show Work for this question: Open Show Work By accessing this Question Assistance, you will learn while you earn points based on the Point Potential Policy set by your instructor Question Attempts: 0 of S used SAVE FOR LATER0T R

Explanation / Answer

Return on Assets = Net income / Average Total Assets

20% = 74200 / Average Total Assets

Average Total Assets = 74200 / 20%

= 371000

Average Payout Ratio = Cash Dividend / Net Income

19% = Cash Dividend / 74200

Cash Dividend = 74200 x 19%

Cash DIvidend = 14098

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