ecker company reports $1,475,000 of net income and declares $206,500 of cash dividends on its preferred stock for the year. at year-end, the company had 390,000 weighted-average shares of common stock. 1. what amount of net income is available to common stockholders?



Answer :

The net income available to common stockholders is $1,268,500

  • Net profits (NI), additionally referred to as internet profits, is calculated as income minus the price of products sold, selling, widespread and administrative charges, working charges, depreciation, interest, taxes, and different charges.
  • It is a beneficial quantity for buyers to evaluate how tons sales exceed the charges of an organization. This quantity seems on a company's profits declaration and is likewise a trademark of a company's profitability.
  • Net profits (NI) are calculated as sales minus charges, interest, and taxes.
  • Earnings in keeping with percentage have calculated the use of NI.
  • Investors must evaluate the numbers used to calculate NI due to the fact charges may be hidden in accounting methods, or sales may be inflated.
  • NI additionally represents an individual's general profits or pre-tax profits after factoring deductions and taxes in gross profits.

Thus, the net income available to stockholders is $1,268,500. By subtracting The net income from cash dividends.

=  $1,475,000- $206,500

= $1,268,500.

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