Chapter 7
Corporations: The Financial Statements
343
AP-12A (
7
)
Part of the financial statements of Toromont Industries is shown below.
Statement of Retained Earnings
For the Year Ended December 31, 2016 ($ thousands)
Retained Earnings, January 1, 2016
$477,820
Add: Net Income for the Period
122,280
570,100
Less: Cash Dividends
(31,061)
Retained Earnings, December 31, 2016
$539,039
Calculate the Dividend Payout Ratio and discuss.
AP-13A
(
7
)
The following data is available for two companies, Sam Corporation and Tally Corporation for
the year ended December 31, 2016.
Sam Corporation Tally Corporation
Income from continuing operations (net of tax)
$710,000
$510,000
Income from discontinued operations (net of tax)
120,000
60,000
Net income
830,000
570,000
Average number of shares outstanding during the year: 100,000
issued by Sam and 50,000 by Tally
800,000
450,000
Beginning retained earnings
2,070,000
1,580,000
Current liabilities
560,000
420,000
Non-current liabilities
980,000
760,000
Market price per share
14
11
Total dividends paid
200,000
120,000
