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[Note that the overview to Topic 4 explains why this is so.] Although the note receivable from Maynard was paid, a dividend for an offsetting amount was also paid—so there is no increase in cash as a result of the owner’s transactions.
3. Retained earnings has not increased by the amount of net income for the month ($19,635) because Maynard declared and paid a dividend of $11,700. Therefore, retained earnings increased $7,935 ($19,635 - $11,700). (The dividend was apparently used to “cancel” her debt to the company.)
4. As we discussed in class, we should not think of “worth” in terms of balance sheet accounts—which are stated at cost...
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Common topics in this essay:
- inventory management
- Competency Inventory
- Effects Of Inventory Errors
- Inventory Management
- Inventory Valuation
- inventory models
- Just in time inventory
- Purchasing And Cash Disbursement
- Retail Inventory
- Interest Inventory
- Inventory of the lost
- Inventory
- Retail Inventory
- The Effect of Exchange Rate Changes on Hedge Funds' Net Asset Value
- Inventory Policy
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