Academy Driving School reported the following amounts in its financial statements: Year 1 Year 2 Number of common shares 11,600 11,600 Net income $ 24,360 $ 19,360 Cash dividends paid on common stock $ 3,100 $ 3,100 Total stockholders' equity $ 250,000 $ 230,000 Calculate EPS and ROE for Year 2. (Round EPS to 2 decimal places and ROE to 1 decimal place.)

Academy Driving School reported the following amounts in its financial statements: Year 1 Year 2 Number of common shares 11,600 11,600 Net income $ 24,360 $ 19,360 Cash dividends paid on common stock $ 3,100 $ 3,100 Total stockholders' equity $ 250,000 $ 230,000 Calculate EPS and ROE for Year 2. (Round EPS to 2 decimal places and ROE to 1 decimal place.)

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

	Year 1	Year 2
Number of common shares	11,600	11,600
Net income	$ 24,360	$ 19,360
Cash dividends paid on common stock	$ 3,100	$ 3,100
Total stockholders' equity	$ 250,000	$ 230,000

Similar questions

The following information is available for Hildebrand Corporation: Dividends paid to common stockholders $45,000 Dividends paid to preferred stockholders 20,000 Net income 295,000 Weighted average common shares outstanding 100,000 Compute the earnings per share of common stock. (Round answer to 2 decimal places, e.g. 10.50.) Earnings per share $
The following are extracts from the financial statements for the year ended 31 January 20X3 of M: $'000 Issued ordinary shares of $1 200 Share premium account 50 Retained profit 25 Loan stock 80 Profit before interest for the year ended 31 January 20X3 60 What is the return on total capital employed?
On December 31. Sulfur Corporation has the following data available: Net Income $140,000 Interest expense 20,000 Total assets at the beginning of the year 720,000 Toital assets at the end of the year 810,000 Total common stockholders' equity at the beginning of the year 440,000 Total common stockholders' equity at the end of the year 300,000 What is return on equity? A. 32.43% B. 27.03% C. 37.84% D. 15.69%
View Policies Current Attempt in Progress The following information is available for Metlock Hill Corporation: Beginning common stockholders equity $790,000 Dividends paid to common stockholders 60,000 Dividends paid to preferred stockholders 32,000 Ending common stockholders'equity 1,000,000 Net income 219,950 Based on the preceding information, calculate return on common stockholders'equity. Return on common stockholders' equity eTextbook and Media Attempts: 0 of 3 used Submit Answer Save for Later
Financial statement data for the years ended December 31 for Cottontop Corporation follow: 20Y3 20Y2 Net income $768,750 $627,750 Preferred dividends $117,000 $117,000 Average number of common shares outstanding 55,000 shares 45,000 shares a. Determine the earnings per share for 20Y3 and 20Y2. Round your answers to two decimal places. 20Y3 $fill in the blank 1 per share 20Y2 $fill in the blank 2 per share b. Does the change in the earnings per share from 20Y2 to 20Y3 indicate a favorable or unfavorable trend?
For the year that just ended, a company reports net income of $3,200,000. There are 750,000 shares authorized, 600,000 shares issued, and 500,000 shares of common stock outstanding. What is the earnings per share? a. $6.40 b. $3.20 c. $5.33 d. $3.33
Topic: Stockholders’ Equity Section of the Balance Sheet The following summaries for 1Maryland Service, Inc., and 2Grapone, Co., provide the information needed to prepare the stockholders’ equity section of each company’s balance sheet. The two companies are independent. Maryland is authorized to issue 44,000 shares of $1 par common stock. All the stock was issued at $11 per share. The company incurred net losses of $47,000 in 2009 and $15,000 in 2010. It earned net income of $32,000 in 2011 and $178,000 in 2012. The company declared no dividends during the four-year period. 2. Grapone’s charter authorizes the issuance of 70,000 shares of 5%, $14 par preferred stock and 470,000 shares of no-par common stock. Grapone issued 1,400 shares of the preferred stock at $14 per share. It issued 130,000 shares of the common stock for $260,000. The company’s retained earnings balance at the beginning of 2012 was $60,000. Net income for 2012 was $98,000, and the company declared the specified…
Financial statement data for the years ended December 31 for Cottontop Corporation follow: 20Y3 20Y2 Net income $957,250 $832,250 Preferred dividends $146,000 $146,000 Average number of common shares outstanding 55,000 shares 45,000 shares a. Determine the earnings per share for 20Y3 and 20Y2. Round your answers to two decimal places. 20Y3 $fill in the blank 1 per share 20Y2 $fill in the blank 2 per share b. Does the change in the earnings per share from 20Y2 to 20Y3 indicate a favorable or unfavorable trend?Unfavorable
Statement of Stockholders' Equity The stockholders’ equity T accounts of I-Cards Inc. for the year ended December 31, 20Y9, are as follows. Common Stock Jan. 1 Balance 900,000 Apr. 14 Issued 13,200 shares 396,000 Dec. 31 Balance 1,296,000 Paid-In Capital in Excess of Par Jan. 1 Balance 144,000 Apr. 14 Issued 13,200 shares 92,400 Dec. 31 Balance 236,400 Treasury Stock Aug. 7 Purchased 2,200 shares 61,600 Retained Earnings Mar. 31 Dividend 23,000 Jan. 1 Balance 1,570,000 June. 30 Dividend 23,000 Dec. 31 Closing Sept. 30 Dividend 23,000 (Net income) 236,000 Dec. 31 Dividend 23,000 Dec. 31 Balance 1,714,000 Prepare a statement of stockholders’ equity for the year ended December 31, 20Y9. If an amount is zero or an entry is not required, leave the box blank.
Understanding EPS Calculations: On its Form 10-K, for December 31, 20X5, Bank of America reported information related to basic earnings per share. Fill in the missing information based on the table below. $ millions, except per share amounts 20X5 20X4 20X3 Net Income $15,888 $4,833 D Preferred Stock Dividends $1,483 B $1,349 Net Income Applicable to Common Shareholders $14,405 C $10,082 Average Common Shares Outstanding 10,462,282 10,527,818 E Basic Earnings per Share (EPS) A $0.36 $0.94
Kinkaid Company was incorporated at the beginning of this year and had a number of transactions. The following journal entries impacted its stockholders' equity during its first year of operations. Transaction General Journal Debit Credit a. Cash 300,000 Common Stock, $25 Par Value 250,000 Paid-In Capital in Excess of Par Value, Common Stock Organization Expenses 50,000 b. 150,000 Common Stock, $25 Par Value 125,000 Paid-In Capital in Excess of Par Value, Common Stock Cash 25,000 43,000 Accounts Receivable. Building 15,000 81,500 Notes Payable 59,500 Common Stock, $25 Par Value 50,000 Paid-In Capital in Excess of Par Value, Common Stock Cash 30,000 120,000 Common Stock, $25 Par Value 75,000 Paid-In Capital in Excess of Par Value, Common Stock 45,000 9 d. Required: 2. How many shares of common stock are outstanding at year-end? 3. What is the total paid-in capital at year-end? 2. Number of outstanding shares 3. Total paid-in capital
The year end balance sheet of CP, In., include the following stockholders’ equity section (with certain details omitted). Stockholders’ equity: Capital stock: 7% cumulative preferred stock, $100 par value……………. $15,000,000 Common stock, $5 par value, 5,000,000 shares Authorized, 4,000,000 shares issued and outstanding…… 20,000,000 Additional paid in capital: Common stock……………………………………………………………… 44,000,000 Retained earnings………………………………………………………… 64,450,000 Total stockholders’ equity…………………………………………… $143,450,000 From this information, I must compute the answers to the following question. 1. What is the amount of legal capital and the amount of total paid-in capital? 2. What is the book value per share of common stock, assuming no dividends in arrears? 3. Is it possible to determine the fair market value per share of common stock from the stock-holders' equity section? Explain