Moore Industries: Achieving Success Through Dividends
How did Moore Industries achieve success in its first year of operation?
a. By investing $50,000 in each of its two stockholders
b. By earning a net income of $240,000
c. By paying a total of $100,000 in dividends to its stockholders
d. By reducing the amount of capital stock reported by the company
Answer:
Moore Industries achieved success in its first year of operation by earning a net income of $240,000.
Moore Industries began its operations in 2017 with an investment of $50,000 by each of its two stockholders. In its first year, the company was able to generate a net income of $240,000, showcasing its strong financial performance. Additionally, Moore Industries paid a total of $100,000 in dividends to its stockholders, rewarding them for their investment in the company.
The net income of $240,000 indicates that Moore Industries was able to effectively manage its expenses and generate substantial revenue. This financial success highlights the company's potential for growth and profitability in the future.
By focusing on improving its financial performance and delivering returns to its investors, Moore Industries was able to achieve success in its first year of operation. The company's ability to generate profits and provide dividends to its stockholders demonstrates its commitment to creating value for its stakeholders.