Table 4.1
Bacon Signs
2013 Income Statement (000's)

Bacon Signs
2012 and 2013 Balance Sheets (000's)

Table 4.1
Bacon Signs
2013 Income Statement (000's)

Bacon Signs
2012 and 2013 Balance Sheets (000's)

-Use the information to determine the 2013 dividend payout ratio for Bacon Signs.
A)This question cannot be answered from the information provided.
B)$250/$7418 = 0.03
C)$463/$713 = 0.65
D)$250/$713 = 0.35

Question

Table 4.1
Bacon Signs
2013 Income Statement (000's)
 
Bacon Signs
2012 and 2013 Balance Sheets (000's)

-Use the information to determine the 2013 dividend payout ratio for Bacon Signs.
A)This question cannot be answered from the information provided. 
B)$250/$7418 = 0.03 
C)$463/$713 = 0.65 
D)$250/$713 = 0.35

Quizplus · Accepted Answer

The information provided does not give the net income or earnings of Bacon Signs, which is needed to calculate the dividend payout ratio using the formula: Dividends paid / Net income. However, the amount of dividends paid in 2013 is given as $250, and the total equity is given as $713. Therefore, the 2013 dividend payout ratio can be calculated as: $250/$713 = 0.35, which is option D.

Table 4.1 Bacon Signs