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Generally Accepted Accounting Principles and Company

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Generally Accepted Accounting Principles and Company
If a company earns net income of $25 million in Year 8, has 10 million shares of stock, pays a dividend of $1.00 per share, and has annual interest costs of $10 million, then | |
|[pic]|[pic]|the company would have Year 8 earnings per share of $1.50. |
| |[pic]| |
|[pic]|[pic]|the company’s retained earnings for Year 8 would be $15 million (net income of $25 million less dividend payments of $10|
| |[pic]|million); the $15 million in retained earnings is treated on the company’s balance sheet as additional accumulated |
| | |retained earnings and thus additional equity investment by stockholders in Year 8. |
|[pic]|[pic]|the company’s dividend payout for the year would equal 60% of earnings. |
| |[pic]| |
|[pic]|[pic]|the company’s retained earnings for the year would be $5 million; the $5 million in retained earnings would be shown on |
| |[pic]|the company’s balance sheet as a reduction in equity investment by stockholders in Year 9. |
|[pic]|[pic]|the company 's retained earnings for the year would be $5 million (net income of $25 million less dividend payments of |
| |[pic]|$10 million less interst costs of $10 million). |

|According to explanations provided on the Help screens for the Production Cost Report, if a company pays a PAT member a base wage of |
|$18,000, a $60 quarterly bonus for perfect attendance, and annual fringe benefits of $2,500, if a PAT is paid a $1 incentive bonus |
|per camera assembled, and if a PAT assembles

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