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the payment of cash dividends

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Q: What is an outflow of cash profitable operations the sale of equipment the sale of the company's common stock or the payment of cash dividends?
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Dividends paid reduce the net income that is reported on a companys income statement?

Dividends paid do not reduce the net income amount shown in income statement rather it reduces the income amount shown in balance sheet as retained earnings which is the remaining profit after dividend.


How dividends work?

The given company sees no reason to hold on to the sum of money and decides to spread some of the disposable money amongst the companys owners and stockholders depending on how much of a stake the given person has in the company


If a company earned 820 million last year and paid out 20 percent of earnings in dividends by how much did the companys retained earnings increase?

Company's retained earnings increased by 80% of last year profit that is (820 million * 80%) 656 million.


why accounting is inseparable from the business?

That’s the companys money


Why do businesses write off equipment?

Businesses write off equipment in an attempt to match the cost of the equipment against the income such equipment helps to generate. Doing so gives the business it's best calculation of it's profitability. Without this attempt to match expense against income distortion of financial performance usually results, which leads to making erroneous decisions in management of the business. In laymans terms: Writing off equipment keeps your hands out of your own money pocket. If you can get someone else to pay for it, do it, because eventually it will come out of the companys pocket. That's not good for business, profit or growth, and that's what makes the big American wheel go round and round......

Related questions

What is a share of a companys profit?

The stockholder's share of a company's profits are called dividends.


Dividends paid reduce the net income that is reported on a companys income statement?

Dividends paid do not reduce the net income amount shown in income statement rather it reduces the income amount shown in balance sheet as retained earnings which is the remaining profit after dividend.


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Yes, I do think commercial painting supplies are a big success. With companys like Sherwin Williams it gives the consumer someone they can trust. Sherwin Williams is a very profitable companys therefore proves they are a very big success.


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The given company sees no reason to hold on to the sum of money and decides to spread some of the disposable money amongst the companys owners and stockholders depending on how much of a stake the given person has in the company


What is stimulus spending?

buying from companys so the companys are worth more money, so people invest into these companys so the companys can grow.


How does record companys help the economy?

Record companies contribute to the economy by paying taxes, creating employment and buying equipment and other items from other companies


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If a company earned 820 million last year and paid out 20 percent of earnings in dividends by how much did the companys retained earnings increase?

Company's retained earnings increased by 80% of last year profit that is (820 million * 80%) 656 million.


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check on the companys local shops are up to the companys standerd


When was Lluís Companys born?

Lluís Companys was born on 1882-06-21.


When did Lluís Companys die?

Lluís Companys died on 1940-10-15.