Crabtree Company has 560,000 shares of $10 par value common stock outstanding. During the year, Crabtree declared a 15% stock dividend when the market price of the stock was $30 per share. Four months later Crabtree declared a $.50 per share cash dividend. As a result of the dividends declared during the year, Retained Earnings decreased by

Crabtree Company has 560,000 shares of $10 par value common stock outstanding. During the year, Crabtree declared a 15% stock dividend when the market price of the stock was $30 per share. Four months later Crabtree declared a $.50 per share cash dividend. As a result of the dividends declared during the year, 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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Your company declared $13,800 cash dividends on stock. There were s6,400 m dividends payable at the beginning of the vear and $2,800 at the end of the year. How much was paid in dividends during the year?
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.
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.
Financial Leaming Systems has 3.1 million shares of common stock outstanding and 117,066 shares of preferred stock. (The preferred pays annual cash dividends of $4.65 a share, and the common pays annual cash dividends of 26 cents a share) Last year, the company generated net profit (after taxes) of $7.627.939. The company's balance sheet shows total assets of $80 million, total liabilitios of $30 million, and $5 million in preferred stock. The firm's common stock is currently trading in the market at $46.72 a share. a. Given the preceding information, find the EPS, P/E ratio, and book value per share b. What will happen to the price of the stock if EPS rises to $3.38 and the P/E ratio stays where it is? What will happen if EPS drops to $1.39 and the P/E doesn't change? c. What will happen to the price of the stock if EPS rises to $3.38 and the P/E jumps to 28.8 times eamings? d. What will happen if both EPS and the P/E ratio drop-to $1.39 and 12.1 times earnings, respectively? e.…
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".
Lightfoot Inc., a software development firm, has stock outstanding as follows: 30,000 shares of cumulative preferred 2% stock, $25 par, and 38,000 shares of $50 par common. During its first four years of operations, the following amounts were distributed as dividends: first year, $5,700; second year, $9,600; third year, $57,820; fourth year, $110,760. 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" 1st Year 2nd Year Preferred stock (dividend per share) Common stock (dividend per share) 0.19 ✓ $ 0.36 X 100 3rd Year 100 4th Year
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Terrance Company reported $20,000 retained earnings at the beginning of the year. The company repurchased 200 shares at $50 per share during the year for the first time. Later, during the year the company sold 100 shares of these treasury shares for $45 per share. Terrance earned $15,000 net income during the year. The company also declared and paid dividends on 500 outstanding 4% preferred stock with $100 par value. Based on this information alone, compute the retained earnings balance at the end of the year. O $34,500 O $35,000 O $32,500 O $32,000 O $37,500