Problem based on net income for the year


Question: ABC Company had 100,000 shares of common stock and 20,000 shares of preferred stock at the end of the year just completed. Preferred stockholders received dividends totaling $140,000. Common stockholders received dividends totaling $210,000. If the dividend payout ratio for the year was 70%, then the net income for the year was:

A)    $300,000.

B)    $287,000.

C)    $440,000.

D)    $147,000.

Solution Preview :

Prepared by a verified Expert
Accounting Basics: Problem based on net income for the year
Reference No:- TGS01893569

Now Priced at $20 (50% Discount)

Recommended (97%)

Rated (4.9/5)