Payment of Cash Dividends 46000

The board of directors of Metropolitan Manufacturing Company voted to pay the holders of preferred and common shares cash dividends amounting to 46,000. Such dividends are traditionally but not necessarily voted on and disbursed on a quarterly basis. Notice that Retained Earnings on the balance sheet (line 21) was affected by two activities, net income and cash dividends, as follows Retained Earnings, 12 31 01 1,247,000 Plus Net Income, 2002 156,000 Minus Cash Dividends, 2002 - 46,000 Equals...

Paley Products

Robert Eng, vice president and loan officer of the First National Bank of Chicago, Illinois, was recently alerted to the deteriorating financial position of one of its clients, Paley Products, by the bank's newly installed computerized loan analysis program. The bank requires quarterly financial statements (balance sheet, income statement, and sources and uses of funds) from each of its loan customers. The data from the financial statements are entered into a spreadsheet program that calculates...

Debt Equity Ratio

This is a measure of risk for both the company and its current and future creditors. Debtor A person or company that owes money to another. Deferred Charges An asset account, sometimes part of ''other assets.'' This is an accumulation account into which payments for future benefits are placed. These cash outlays will be converted into expenses gradually as the operations begin. Examples are start-up costs of a new business and upfront fees associated with stock and bond offerings. Deferred...