financial statements7

financial statements7 - Financial statements i Answer c...

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Financial statements Answer: c Diff: E i . Which of the following statements is most correct? a. Accounts receivable show up as current liabilities on the balance sheet. b. Dividends paid reduce the net income that is reported on a company’s income statement. c. If a company pays more in dividends than it generates in net income, its balance of retained earnings reported on the balance sheet will fall. d. Statements a and b are correct. e. All of the statements above are correct. Book and market values per share Answer: e Diff: E N ii . Haskell Motors’ common equity on the balance sheet totals $700 million, and the company has 35 million shares of common stock outstanding. Haskell has significant growth opportunities. Its headquarters has a book value of $5 million, but its market value is estimated to be $10 million. Over time, Haskell has issued outstanding debt that has a book value of $10 million and a market value of $5 million. Which of the following statements is most correct? a. Haskell’s book value per share is $20.
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financial statements7 - Financial statements i Answer c...

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