Question

Company XYZ $ millions Total Assets 1,000 Shareholder Equity 400 Net Income 150 Total Expenses 250...

Company XYZ

$ millions

Total Assets

1,000

Shareholder Equity

400

Net Income

150

Total Expenses

250

Begin Shareholder Equity Balance

250

Net Payout to Shareholders

50

Share Issuances

0

Stock Repurchases

0
  1. The company’s revenues are:
    1. $200 million
    2. $400 million
    3. $600 million
    4. $800 million
  2. The company’s comprehensive income is:
    1. $200 million
    2. $400 million
    3. $600 million
    4. $800 million
  3. The company’s dividend is:
    1. $0
    2. $50 million
    3. $100 million
    4. $200 million

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Homework Answers

Answer #1
Solution:
1st Answer is b. $400 million
Working Notes:
Net Income = Revenue -Expenses
150 = Revenue -250
Revenue = 250 + 150
Revenue = $400 million
2nd Answer is a. $200 million
Working Notes:
Ending equity = Beginning equity + Comprehensive Income - Net Payout
400 = 250 + Comprehensive income - 50
Comprehensive income = 400 - 250 +50
Comprehensive income = $200 million
3rd Answer is b. $50 million
Working Notes:
Net payout = Dividends + Share repurchases - Share issues
50 = Dividends + 0 - 0
Dividends = $50 million
Please feel free to ask if anything about above solution in comment section of the question.
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