ABC Company has 560,000 shares of common stock outstanding with a par value of $10. During the year, ABC declared a 10% stock dividend when the market price of the stock was $30. Four months later, ABC declared a cash dividend of $0.50 per share. As a result a the declaration of this dividend, retained earnings decreased by

ABC Company has 560,000 shares of common stock outstanding with a par value of $10. During the year, ABC declared a 10% stock dividend when the market price of the stock was $30. Four months later, ABC declared a cash dividend of $0.50 per share. As a result a the declaration of this dividend, retained earnings decreased by

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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Girlie Company's net income last year was P300,000. Girlie Company has 100,000 shares of common stock and 30,000 shares of preferred stock outstanding. There was no change in the number of common or preferred shares outstanding during the year. Girlie declared and paid dividends last year of P1.90 per share on the common stock and P1.70 per share on the preferred stock. The earnings per share of common stock is closest to * Choices: P3.00. P3.51. P2.49. P1.10.
CAP Corporation has reacquired 50,000 of its shares at $13 per share. The average cost of these shares was $11 per share and there was a prior credit balance of $100,000 in the contributed surplus account. Assuming the balance in the contributed surplus account is the result of prior transactions relating to the shares now being reacquired, the effect on retained earnings would be as follows: a) a credit of $100,000. b) a credit of $650,000. c) a debit of $100,000. d) no impact.
Livestone Company's net income last year was P371,000. The company has 100,000 shares of common stock and 30,000 shares of preferred stock outstanding. There was no change in the number of common or preferred shares outstanding during the year. The company declared and paid dividends last year of P1.90 per share on the common stock and P1.70 per share on the preferred stock. The earnings per share of common stock is P per share (nearest centavo, 2 decimal places)
On January 1, Oriole Company had 2800000 shares of $10 par value common stock outstanding. On March 31 the company declared a 10% stock dividend. Market value of the stock was $16/share. As a result of this event, O Oriole's Paid-in Capital in Excess of Par Value account increased $1680000. O Oriole's total stockholders' equity was unaffected. O Oriole's Stock Dividends account increased $4480000. O All of these answer choices are correct.
Bolton Corporation had additions to retained earnings for the year just ended of $629,000. The firm paid out $110,000 in cash dividends, and it has ending total equity of $7.24 million. a. If the company currently has 610,000 shares of common stock outstanding, what are earnings per share? Dividends per share? What is book value per share? Note: Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16. b. If the stock currently sells for $29.40 per share, what is the market-to-book ratio? The price-earnings ratio? Note: Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16. c. If total sales were $10.54 million, what is the price-sales ratio? Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16. a. Earnings per share Dividends per share Book value per share b. Market-to-book ratio Price-earnings ratio c. Price-sales ratio times times times 4
Pharoah Company has 496000 shares of $10 par value common stock outstanding. During the year Pharoah declared a 15% stock dividend when the market price of the stock was $34 per share. Three months later Pharoah declared a $0.60 per share cash dividend. As a result of the dividends declared during the year, retained earnings decreased by $2529600. $491040. $2871840. $467600.
Lightfoot Inc., a software development firm, has stock outstanding as follows: 15,000 shares of cumulative preferred 2% stock, $25 par, and 19,000 shares of $100 par common. During its first four years of operations, the following amounts were distributed as dividends: first year, $2,850; second year, $4,800; third year, $30, 240; fourth year, $59,750. Calculate the dividend per share on each class of stock for each of the four years. Round all answers to two decimal places.
Lightfoot Inc., a software development firm, has stock outstanding as follows: 15,000 shares of cumulative preferred 2% stock, $25 par, and 19,000 shares of $50 par common. During its first four years of operations, the following amounts were distributed as dividends: first year, $2,850; second year, $4,800; third year, $28,910; fourth year, $55,380. Calculate the dividends per share on each class of stock for each of the four years. Round all answers to two decimal places. If no dividends are paid in a given year, enter "0".
Wildcat, Inc. declared a 10% stock dividend when it had 250,000 shares of $1 par value common stock outstanding. The market price per share of common stock was $10 per share when the dividend was declared. The entry to record the stock dividend would include a credit to: O Common Stock $250.000. O Retained Earnings $250,000. O Retained Earnings $25,000. O Additional Paid in Capital $250,000. O None of the above.
McDonnell-Myer Corporation reported net income of $1,450 million. The company had 469 million common shares outstanding at January 1 and sold 42 million shares on February 28. As part of an annual share repurchase plan, 6 million shares were retired on April 30 for $32 per share. Calculate McDonnell-Myer's earnings per share for the year. (Do not round intermediate calculations. Round your final answer to 2 decimal places.)
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