BYP12-4 BFGoodrich Company is a worldwide diversified manufacturer of tires, vìnyl prod- ucts, specialty chemicals, and aerospace products. Selected financial data, in millions of dollars, for a recent 2-year period were as follows. Prior Current Year Year $2,416.7 298.0 $2,023.5 200.7 Sales Total operating income Income from continuing operations Income (loss) from discontinued operations (net of taxes) Extraordinary items (net of taxes) Cumulative effect of change in method of accounting for 209.9 83.6 (16.9) (4.4) 25.8 taxes 2.7 Net income 195.7 105.0 Dividends on preferred stock Dividends on common stock Income retained in the business at end of year 8.8 43.3 9.8 37.0 548.9 405.3 The notes to the company's financial statements indicate that the weighted average num- ber of common shares outstanding (in thousands of shares) was 25,179 for the current year and 23,651 for the prior year. In addition, the stockholders' equity section of the balance sheet shows that at December 31 of the current year there were 25,554,627 shares of common stock issued and 352,396 shares of common stock held in the treasury. Instructions (a) Present the earnings per share data for the company for each year. (b) Comment on the relative importance of material nontypical items in each year. CHAPTER 12 Corporations: Organization, Stock Transactions, Dividends and Retained Earnings (e) Discuss how you would factor these nontypical items into your prediction of next year's net income for BFGoodrich. (d) Prepare a retained earnings statement for the current year. (e) What was the total dividend per share of common stock for the current year?
BYP12-4 BFGoodrich Company is a worldwide diversified manufacturer of tires, vìnyl prod- ucts, specialty chemicals, and aerospace products. Selected financial data, in millions of dollars, for a recent 2-year period were as follows. Prior Current Year Year $2,416.7 298.0 $2,023.5 200.7 Sales Total operating income Income from continuing operations Income (loss) from discontinued operations (net of taxes) Extraordinary items (net of taxes) Cumulative effect of change in method of accounting for 209.9 83.6 (16.9) (4.4) 25.8 taxes 2.7 Net income 195.7 105.0 Dividends on preferred stock Dividends on common stock Income retained in the business at end of year 8.8 43.3 9.8 37.0 548.9 405.3 The notes to the company's financial statements indicate that the weighted average num- ber of common shares outstanding (in thousands of shares) was 25,179 for the current year and 23,651 for the prior year. In addition, the stockholders' equity section of the balance sheet shows that at December 31 of the current year there were 25,554,627 shares of common stock issued and 352,396 shares of common stock held in the treasury. Instructions (a) Present the earnings per share data for the company for each year. (b) Comment on the relative importance of material nontypical items in each year. CHAPTER 12 Corporations: Organization, Stock Transactions, Dividends and Retained Earnings (e) Discuss how you would factor these nontypical items into your prediction of next year's net income for BFGoodrich. (d) Prepare a retained earnings statement for the current year. (e) What was the total dividend per share of common stock for the current year?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Please solve the question ASAP.
Transcribed Image Text:BYP12-4 BFGoodrich Company is a worldwide diversified manufacturer of tires, vìnyl prod-
ucts, specialty chemicals, and aerospace products. Selected financial data, in millions of dollars,
for a recent 2-year period were as follows.
Prior
Current
Year
Year
$2,416.7
298.0
$2,023.5
200.7
Sales
Total operating income
Income from continuing operations
Income (loss) from discontinued operations (net of taxes)
Extraordinary items (net of taxes)
Cumulative effect of change in method of accounting for
209.9
83.6
(16.9)
(4.4)
25.8
taxes
2.7
Net income
195.7
105.0
Dividends on preferred stock
Dividends on common stock
Income retained in the business at end of year
8.8
43.3
9.8
37.0
548.9
405.3
The notes to the company's financial statements indicate that the weighted average num-
ber of common shares outstanding (in thousands of shares) was 25,179 for the current year and
23,651 for the prior year. In addition, the stockholders' equity section of the balance sheet shows
that at December 31 of the current year there were 25,554,627 shares of common stock issued
and 352,396 shares of common stock held in the treasury.
Instructions
(a) Present the earnings per share data for the company for each year.
(b) Comment on the relative importance of material nontypical items in each year.
CHAPTER 12 Corporations: Organization, Stock Transactions, Dividends and Retained Earnings
(e) Discuss how you would factor these nontypical items into your prediction of next year's
net income for BFGoodrich.
(d) Prepare a retained earnings statement for the current year.
(e) What was the total dividend per share of common stock for the current year?
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