The balance sheets for Crosby Inc. and Gretzky Inc. reflect the following.Current liabilitiesLong-term liabilitiesStockholders' equityCommon stock, $5 par6% Preferred stock, $10 par, cumulativeRetained earningsTotal liabilities and stockholders' equityNet income, included in above retained earnings amountCommon stockholders' equity, prior yearRequiredRatios for Crosby Inc.Ratioa. Total liabilities-to-equity ratio$b. Return on equity ratio$c. Book value per share of common stock $Ratios for Gretzky Inc.RatioCompute the ratios for the two companies included in the tables that follow in parts a, b, and ca. Total liabilities-to-equity ratio$b. Return on equity ratio$c. Book value per share of common stock $Numerator108,000 ✓0x414,000Numera468,000✔CrosbyInc.0x136,800$54,00054,000306,00082,80090,00036,000108,00054,000$1,101,600 $1,153,440$72,000 $36,000405,000162,000GretzkyInc.$54,000414,000$$DenominatorS 504,000 ✓0x0 x-enom atorS 172,800 ✓0xS$xResultResult0.212.71

a). Total liabilities to equity ratio : Total liabilities to equity ratio = (Current liabilities +…

Answered: Current liabilities Long-term…

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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Reporting Stockholders' Equity Bonner Company began business this year and immediately sold 500,000 common shares for $13,500,000 cash and paid $750,000 in common dividends. At midyear, the firm bought back some of its own shares. The company reports the following additional information at year-end: Net income Unrealized gain on available-for-sale debt securities Common stock, at par Retained earnings beginning of year Common shares authorized Common shares outstanding at year's end $3,750,000 $66,000 $5,000,000 $0 750,000 425,000 a. What was the average sales price of a common share when issued? Round to two decimal places. $ 27 per share b. What is the par value of the common shares? $ 10 per share c. How much is in the Additional paid-in capital account at the end of the year? $ 8,500,000 d. How much is in accumulated other comprehensive income (loss) at the end of the year? $ (1,175,000) e. Determine the retained earnings amount at the end of the year. $ 3,000,000 f. How many…
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Financial Accounting and Reporting Equity
Change in Stockholders’ Equity Previous Year Current Year Net Income $35,000 $48,000 Average stockholders' equity 1,000,000 1,500,000 Dividend per common share 1.90 2.00 Earnings per share 2.85 3.20 Market price per common share, year-end 19.00 21.00 Nikron Corporation issued 20,000 shares of $0.50 par value common stock during the year for $20 each. Nikron also repurchased treasury stock for $15,000. Net income for the year was $140,000. The company also paid cash dividends of $25,000. What was the total change in Nikron’s stockholders’ equity for the year? Answer Answer Answer Answer Answer Answer Answer Answer Answer Answer Answer
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