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+ a. What are the financial statement effects of the issuance of new common stock in 2002 (assuming all new shares were issued for cash)? Equity Assets = Liabilities + Sales b. At what average price did Qutfront repurchase shares in 2002? Assets c. What are the financial statement effects of the reissuance of treasury stock in 2002? = Liabilities + Equity Expenses Sales Expenses - = = Profit Profit

+ a. What are the financial statement effects of the issuance of new common stock in 2002 (assuming all new shares were issued for cash)? Equity Assets = Liabilities + Sales b. At what average price did Qutfront repurchase shares in 2002? Assets c. What are the financial statement effects of the reissuance of treasury stock in 2002? = Liabilities + Equity Expenses Sales Expenses - = = Profit Profit

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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+ EQUITY - Problem 10 The following is the Statement of Shareholders' Equity for Outfront Steakhouse, Inc. for the year ended December 31, 2002. Refer to it in order to answer the following questions (assume the firm has no preferred stock). Round all prices to cents. Balance, December 31, 2001 Issuance of Common Stock Repurchase of Treasury Stock Reissuance of Treasury Stock Dividends Net Income Balance, December 31, 2002 Assets Number of Shares Outstanding 76,913 196 (2,691) 1,462 Assets 75,880 Common Stock 786 2 Additional Paid-in Retained Treasury Capital Earnings Stock 220,648 762,414 (42,004) 15,578 (6,767) 788 229,459 a. What are the financial statement effects of the issuance of new common stock in 2002 (assuming all new shares were issued for cash)? Liabilities + Equity Sales b. At what average price did Outfront repurchase shares in 2002? (81,650) 36,706 (9,101) 156,364 909,677 (86,948) Sales Expenses c. What are the financial statement effects of the reissuance of treasury stock in 2002? = Liabilities + Equity Expenses = Total Equity 941,844 15,580 (81,650) 29,939 (9,101) 156,364 1,052,976 Profit = Profit d. At what average price did they originally repurchase those shares that they reissued in 2002? (no, this is not the same as part b) e. Suppose weighted average shares outstanding was 75,500 for 2002. What is the Basic EPS?
Transcribed Image Text:+ EQUITY - Problem 10 The following is the Statement of Shareholders' Equity for Outfront Steakhouse, Inc. for the year ended December 31, 2002. Refer to it in order to answer the following questions (assume the firm has no preferred stock). Round all prices to cents. Balance, December 31, 2001 Issuance of Common Stock Repurchase of Treasury Stock Reissuance of Treasury Stock Dividends Net Income Balance, December 31, 2002 Assets Number of Shares Outstanding 76,913 196 (2,691) 1,462 Assets 75,880 Common Stock 786 2 Additional Paid-in Retained Treasury Capital Earnings Stock 220,648 762,414 (42,004) 15,578 (6,767) 788 229,459 a. What are the financial statement effects of the issuance of new common stock in 2002 (assuming all new shares were issued for cash)? Liabilities + Equity Sales b. At what average price did Outfront repurchase shares in 2002? (81,650) 36,706 (9,101) 156,364 909,677 (86,948) Sales Expenses c. What are the financial statement effects of the reissuance of treasury stock in 2002? = Liabilities + Equity Expenses = Total Equity 941,844 15,580 (81,650) 29,939 (9,101) 156,364 1,052,976 Profit = Profit d. At what average price did they originally repurchase those shares that they reissued in 2002? (no, this is not the same as part b) e. Suppose weighted average shares outstanding was 75,500 for 2002. What is the Basic EPS?
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