4. The following post-closing data are provided for Amazon Company: Description 5% Cumulative (non-participating), preferred stock $10 par Common stock, $5 par Additional paid-in capital - common stock Retained earnings Treasury stock (20 shares of preferred stock at cost) December 31 YR02 YR01 $1,000 $1,000 2,500 2,000 800 600 1,200 800 240 0 Other information: Net Income for YR02 was $400, and Net Income for YR01was $100. In May of YR02 the company issued 100 shares of common stock. In August of YR02 the company purchased, as treasury stock, 20 preferred shares. Preferred dividends were last declared and paid in YR00. The market price of the common stock was $20 at December 31, YR02. At December 31, YR02 the preferred stock has a market value of $11 and a liquidation value of $12.
4. The following post-closing data are provided for Amazon Company: Description 5% Cumulative (non-participating), preferred stock $10 par Common stock, $5 par Additional paid-in capital - common stock Retained earnings Treasury stock (20 shares of preferred stock at cost) December 31 YR02 YR01 $1,000 $1,000 2,500 2,000 800 600 1,200 800 240 0 Other information: Net Income for YR02 was $400, and Net Income for YR01was $100. In May of YR02 the company issued 100 shares of common stock. In August of YR02 the company purchased, as treasury stock, 20 preferred shares. Preferred dividends were last declared and paid in YR00. The market price of the common stock was $20 at December 31, YR02. At December 31, YR02 the preferred stock has a market value of $11 and a liquidation value of $12.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:4. The following post-closing data are provided for Amazon Company:
Description
5% Cumulative (non-participating), preferred stock $10 par
Common stock, $5 par
Additional paid-in capital – common stock
Retained earnings
Treasury stock (20 shares of preferred stock at cost)
December 31
YR02 YR01
$1,000
2,500
800
1,200
240
3
$1,000
2,000
600
800
0
Other information: Net Income for YR02 was $400, and Net Income for YR01 was $100. In May of YR02 the
company issued 100 shares of common stock. In August of YR02 the company purchased, as treasury stock,
20 preferred shares. Preferred dividends were last declared and paid in YR00. The market price of the common stock
was $20 at December 31, YR02. At December 31, YR02 the preferred stock has a market value of $11 and a
liquidation value of $12.
The book value per share of common stock outstanding at December 31, YR02 is (round to nearest penny):
a. $7.92
b. $8.25
c. $8.44
d. $9.40
e. None of the above
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