8. Shown below is the liabilities and stockholders' equity section of the balance sheet for Jana Katigbak Companyand Mary Ann Balmes Company. Each has assets totaling P4,200,000.Jana Katigbak Co.Current liabilitiesLong-term debt, 10%Common stock ( 20 par)Retained earnings (Cashdividends, 220,000)Mary Ann Balmes Co.Current liabilitiesCommon stock ( 20 par)Betained earnings (Cash300,000600,0002,900,0001,200,0002,000,000dividends, 328,000)700,000700,0004,200,0004,200.000For the year, each company has earned the same income before interest and taxes.Balmes Co.Katigbak Co.1,200,000120,000Income before interest and taxes1,200,000-0-Interest expense1,080,000486,0001,200,000540,000Income taxes (45%)Net income594,000660.000At year end, the market price of Katigbak's stock was P101 per share, and Balmes's was P63.50.Instructionsa. Which company is more profitable in terms of return on total assets?b. Which company is more profitable in terms of return on common stock equity?C.Which company has the greater net income per share of stock? Neither company issued or reacquiredshares during the year.d. From the point of view of net income, is it advantageous to the stockholders of Jana Katigbak Co. to havethe long-term debt outstanding? Why?What is the book value per share for each company?e

Hello. Since your question has multiple sub-parts, we will solve the first three sub-parts for you.…

8. Shown below is the liabilities and stockholders' equity section of the balance sheet for Jana Katigbak Company and Mary Ann Balmes Company. Each has assets totaling P4,200,000. Jana Katigbak Co. Current liabilties Long-term debt, 10% Common stock ( 20 par) Retained earnings (Cash dividends, 220,000) Mary Ann Balmes Co. Current liabilties Common stock ( 20 par) Retained earnings (Cash dividends, 328,000) 600,000 2,900,000 300,000 1,200,000 2,000,000 700,000 700,000 4,200.000 4,200,000 For the year, each company has earned the same income before interest and taxes. F11 Income before interest and taxes Interest expense Katiabak Co. 1,200,000 120,000 Balmes Co. 1,200,000 1,080,000 480,000 594,000 1,200,000 540,000 Income taxes (45%) Net income 600,000 At year end, the market price of Katigbak's stock was P101 per share, and Balmes's was P63.50. Instructions a. Which company is more profitable in terms of return on total assets? b. Which company is more profitable in terms of return on common stock equity? c. Which company has the greater net income per share of stock? Neither company issued or reacquired shares during the year.

8. Shown below is the liabilities and stockholders' equity section of the balance sheet for Jana Katigbak Company and Mary Ann Balmes Company. Each has assets totaling P4,200,000. Jana Katigbak Co. Current liabilties Long-term debt, 10% Common stock ( 20 par) Retained earnings (Cash dividends, 220,000) Mary Ann Balmes Co. Current liabilties Common stock ( 20 par) Retained earnings (Cash dividends, 328,000) 600,000 2,900,000 300,000 1,200,000 2,000,000 700,000 700,000 4,200.000 4,200,000 For the year, each company has earned the same income before interest and taxes. F11 Income before interest and taxes Interest expense Katiabak Co. 1,200,000 120,000 Balmes Co. 1,200,000 1,080,000 480,000 594,000 1,200,000 540,000 Income taxes (45%) Net income 600,000 At year end, the market price of Katigbak's stock was P101 per share, and Balmes's was P63.50. Instructions a. Which company is more profitable in terms of return on total assets? b. Which company is more profitable in terms of return on common stock equity? c. Which company has the greater net income per share of stock? Neither company issued or reacquired shares during the year.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Ayayai Corp. has these accounts at December 31: Common Stock, $10 par, 4,500 shares issued, $45,000; Paid-in Capital in Excess of Par $20,250; Retained Earnings $43,000; and Treasury Stock, 400 shares, $8,800. Prepare the stockholders' equity section of the balance sheet. (Enter account name only and do not provide descriptive information.) Ayayai Corp. Balance Sheet (Partial) SA
The following accounts and their balances appear in the ledger of Goodale Properties Inc. on June 30 of the current year: Line Item Description Amount Common Stock, $15 par $154,500 Paid-In Capital from Sale of Treasury Stock 6,700 Paid-In Capital in Excess of Par—Common Stock 12,360 Retained Earnings 255,000 Treasury Stock 9,595 Prepare the "Stockholders' Equity" section of the balance sheet as of June 30. Regarding the common stock, 50,000 shares are authorized, and 505 shares have been reacquired.
Please help me with this (:
69 )
The following accounts and their balances appear in the ledger of Goodale Properties Inc. on June 30 of the current year: Common Stock, $15 par Paid-In Capital from Sale of Treasury Stock Paid-In Capital in Excess of Par-Common Stock Retained Earnings Treasury Stock Retained Earnings Treasury Stock (715 Shares at Cost) Total Stockholders' Equity $657,000 27,000 17,520 Prepare the Stockholders' Equity section of the balance sheet as of June 30 using Method 1 of Exhibit 8. Eighty thousand shares of common stock are authorized, and 715 shares have been reacquired. ✓ 1,031,000 ✓ 13,585 Paid-In Capital: Common Stock, $45 Par (80,000 Shares Authorized, 14,600 Shares Issued) Excess Over Par Paid-in capital, common stock From Sale of Treasury Stock Total Paid-In Capital Goodale Properties Inc. Stockholders' Equity June 30 QOOQ
The following selected data were taken from the financial statements of Vidahill Inc. for December 31, 20Y7, 20Y6, and 20Y5: December 31 20Υ7 20Y6 20Υ5 Total assets $192,000 $173,000 $154,000 Notes payable (8% interest) 60,000 60,000 60,000 Common stock 24,000 24,000 24,000 Preferred 4% stock, $100 par 12.000 12,000 12,000 (no change during year) Retained earnings 70,415 45,870 36,000 The 20Y7 net income was $25,025, and the 20Y6 net income was $10,350. No dividends on common stock were declared between 20Y5 and 20Y7. Preferred dividends were declared and paid in full in 20Y6 and 20Y7. a. Determine the return on total assets, the return on stockholders' equity, and the return on common stockholders' equity for the years 20Y6 and 20Y7. Round percentages to one decimal place. 20Y7 20Υ6 Return on total assets % Return on stockholders' equity Return on common stockholders' equity % b. The profitability ratios indicate that the company's profitability has Since the rate of return on total…
The following selected data were taken from the financial statements of Vidahill Inc. for December 31, 20Y7, 20Y6, and 20Y5: December 31 20Y7 20Y6 20Y5 Total assets $174,000 $157,000 $140,000 Notes payable (8% interest) 60,000 60,000 60,000 Common stock 24,000 24,000 24,000 Preferred 6% stock, $100 par 12,000 12,000 12,000 (no change during year) Retained earnings 63,550 47,100 36,000 The 20Y7 net income was $17,170, and the 20Y6 net income was $11,820. No dividends on common stock were declared between 20Y5 and 20Y7. Preferred dividends were declared and paid in full in 20Y6 and 20Y7. a. Determine the return on total assets, the return on stockholders' equity, and the return on common stockholders’ equity for the years 20Y6 and 20Y7. When required, round to one decimal place. 20Y7 20Y6 Return on total assets fill in the blank 1 % fill in the blank 2 % Return on stockholders’ equity fill in the blank 3 % fill…
The following accounts and their balances appear in the ledger of Goodale Properties Inc. on June 30 of the current year: Common Stock, $15 par $706,500 Paid-In Capital from Sale of Treasury Stock 29,000 Paid-In Capital in Excess of Par-Common Stock 18,840 Retained Earnings 1,109,000 Treasury Stock 14,630 Prepare the Stockholders' Equity section of the balance sheet as of June 30 using Method 1 of Exhibit 8. Eighty thousand shares of common stock are authorized, and 770 shares have been reacquired. Goodale Properties Inc. Stockholders' Equity June 30, 20хх Paid-In Capital: Total Paid-In Capital $4 Total Total Stockholders' Equity
given the following data for the cheyenne company: current liabilities 602; long-term debt 630; common stock 858; retained earnings 1210; total liabilities & stockholders' equity 3300. how would common stock apprear on a common size balance sheet?