Felton Financial Inc, had net earnings last year of 487,000. If ...

[viki]

Felton Financial Inc, had net earnings last year of 487,000. If the firm has a dividend payout policy of 30, what was the addition to retained earnings?
 
  A) 340,900
  B) 487,000
  C) 146,100
  D) There is not enough information to answer this question.

Question 2

Based on the information in Table 4-3, the current and acid-test ratios are, respectively,
 
  A) 2.37 and 1.27. B) 2.18 and 1.39. C) 2.18 and 1.27. D) 2.37 and 1.39.

[emily12345]

Answer to Question 1

A
Explanation: A) NE  (1-DPO) = 487,000  (1-.30 ) = 340,900.

Answer to Question 2

C