00 Verizon 8:51 PM c @ 100%-. Today 6:48 PM Details onJauay 1, 2016,the loloweng

Question

00 Verizon 8:51 PM c @ 100%-. Today 6:48 PM Details onJauay 1, 2016,the loloweng r tormabondrawn horn the accoutrg records ofCate omry ach o 580, land of $2,38s0, noles payable of 850, and common stock of $1,a0 Requred a. Determine the amount of retained earnings as of January 1, 2016 b. Ater looking at the amount of netained eamings, the chief executive officer (CEO) wnts to pay a 0 cash dividend to the stockholders Can the company pay this dvidend Yes c. As of January 1, 2016, what percent of the assets were acquired trom credtiors? (Round your answe to 1 decimal place. d. As of January 1, 2016 what percent of the assets were acquirned rom investors? Hound your answ to 1 deckmal place Type

Explanation / Answer

a.The amount of retained earnings as of January 1,2016.

cash + land - notes payable - common stock

=>$550 + $2850 - $850 - $1870

=>$680.

Retained earnings = $680.

b. Yes

.The company can pay a dividend of $650, since it is less than the amount of retained earnings.

c.percent of assets acquired from creditors = notes payable / total assets *100.

here,

total assets = cash + land => $550 + $2850

=>$3400.

now,

percent of assets acquired = $850 / 3400 * 100

=>25%.

d.Percent of assets acquired from investors = (commonstock / total assets *100

=>($1870 / $3400 *100

=>$1870 / 3400 *100

=>55%.

e.Percent of assets acquired from retained earnings => retained earnings / common stock *100.

=> $680 / 3400 *100

=>20%.

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