E11-17 (Algo) Determining the Effect of a Stock Repurchase on EPS and ROE [LO 11-2, LO 11-5] Swimtech Pools Incorporated (SPI) reported the following in its financial statements for the quarter ended March 31, 2021. March 31, 2021 $ 43,000 25,800 17,200 $ 86,000 Common Stock, $1 par, 43,000 shares issued and outstanding Additional Paid-In Capital Retained Earnings Total Stockholders' Equity During the quarter ended March 31, SPI reported Net Income of $3,440 and declared and paid cash dividends totaling $3,440. Required: 1. Calculate earnings per share (EPS) and return on equity (ROE) for the quarter ended March 31. 2. Assume SPI repurchases 9,300 of its common stock at a price of $2 per share on April 1, 2021. Also assume that during the quarter ended June 30, 2021, SPI reported Net Income of $3,440 and declared and paid cash dividends totaling $3,440. Calculate earnings per share (EPS) and return on equity (ROE) for the quarter ended June 30, 2021. Complete this question by entering your answers in the tabs below. December 31, 2020 $ 43,000 25,800 17,200 $ 86,000 Required 1 Required 2 Calculate earnings per share (EPS) and return on equity (ROE) for the quarter ended March 31. (Round "Earnings per Share" to 2 decimal places and "Return on Equity" to 1 decimal place.) Earnings per Share Return on Equity
E11-17 (Algo) Determining the Effect of a Stock Repurchase on EPS and ROE [LO 11-2, LO 11-5] Swimtech Pools Incorporated (SPI) reported the following in its financial statements for the quarter ended March 31, 2021. March 31, 2021 $ 43,000 25,800 17,200 $ 86,000 Common Stock, $1 par, 43,000 shares issued and outstanding Additional Paid-In Capital Retained Earnings Total Stockholders' Equity During the quarter ended March 31, SPI reported Net Income of $3,440 and declared and paid cash dividends totaling $3,440. Required: 1. Calculate earnings per share (EPS) and return on equity (ROE) for the quarter ended March 31. 2. Assume SPI repurchases 9,300 of its common stock at a price of $2 per share on April 1, 2021. Also assume that during the quarter ended June 30, 2021, SPI reported Net Income of $3,440 and declared and paid cash dividends totaling $3,440. Calculate earnings per share (EPS) and return on equity (ROE) for the quarter ended June 30, 2021. Complete this question by entering your answers in the tabs below. December 31, 2020 $ 43,000 25,800 17,200 $ 86,000 Required 1 Required 2 Calculate earnings per share (EPS) and return on equity (ROE) for the quarter ended March 31. (Round "Earnings per Share" to 2 decimal places and "Return on Equity" to 1 decimal place.) Earnings per Share Return on Equity
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:ak
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E11-17 (Algo) Determining the Effect of a Stock Repurchase on EPS and ROE [LO 11-2, LO 11-5)
Swimtech Pools Incorporated (SPI) reported the following in its financial statements for the quarter ended March 31, 2021.
March 31,
2021
$ 43,000
25,800
17,200
$ 86,000
Common Stock, $1 par, 43,000 shares issued and outstanding
Additional Paid-In Capital
Retained Earnings
Total Stockholders' Equity
During the quarter ended March 31, SPI reported Net Income of $3,440 and declared and paid cash dividends totalling $3,440.
Required:
1. Calculate earnings per share (EPS) and return on equity (ROE) for the quarter ended March 31.
2. Assume SPI repurchases 9,300 of its common stock at a price of $2 per share on April 1, 2021. Also assume that during the
quarter ended June 30, 2021, SPI reported Net Income of $3,440 and declared and paid cash dividends totaling $3,440.
Calculate earnings per share (EPS) and return on equity (ROE) for the quarter ended June 30, 2021.
Complete this question by entering your answers in the tabs below.
December 31, 2020
$ 43,000
25,800
17,200
$ 86,000
Required 1 Required 2
Calculate earnings per share (EPS) and return on equity (ROE) for the quarter ended March 31. (Round "Earnings per Share"
to 2 decimal places and "Return on Equity" to 1 decimal place.)
Earnings per Share
Return on Equity
96
Transcribed Image Text:Complete this question by entering your answers in the tabs below.
Required 1 Required 2
Assume SPI repurchases 9,300 of its common stock at a price of $2 per share on April 1, 2021. Also assume that during the
quarter ended June 30, 2021, SPI reported Net Income of $3,440 and declared and paid cash dividends totaling $3,440.
Calculate earnings per share (EPS) and return on equity (ROE) for the quarter ended June 30, 2021. (Round "Earnings per
Share" to 3 decimal places and "Return on Equity" to 1 decimal place.)
Earnings per Share
Return on Equity
%6
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