Effectof Financing on Earnings Per ShareBSF Co., which produces and sells skiing equipment, is financed as follows:Bonds payable, 10% (issued at face amount)$1,950,000Preferred 2% stock, $20 par1,950,000Common stock, $25 par1,950,000Income tax is estimated at 60% of income.Round your answers to the nearest cent.a. Determine the earnings per share of common stock, assuming that the income before bond interest and income tax is $760,500.per shareb. Determine the earnings per share of common stock, assuming that the income before bond interest and income tax is $955,500.per sharec. Determine the earnings per share of common stock, assuming that the income before bond interest and income tax is $1,150,500.per share

Earnings per share means amount of income or earnings attributable for each common shareholder. This…

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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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Assessing Financial Statement Effects of Equity Method SecuritiesUse the financial statement effects template to record the following transactions involving investments in marketable securities accounted for using the equity method.a. Purchased 12,000 common shares of Bakersfield Co. at $10 per share; the shares represent 30% ownership in Bakersfield.b. Received a cash dividend of $1.50 per common share from Bakersfield.c. Bakersfield reported annual net income of $75,000.d. Sold all 12,000 common shares of Bakersfield for $128,500.Use negative signs with answers, if appropriate. Balance Sheet Income Statement Noncash Contrib. Earned Transaction Cash Asset + Assets = Liabilities + Captial + Capital Revenues - Expenses = Net income a. Purchased shares of Bakersfield. Answer Answer Answer Answer Answer Answer Answer Answer b. Received cash dividend from Bakersfield. Answer Answer Answer Answer Answer Answer Answer Answer c.…
Dividend Yield On June 30, Rae Corporation had a market price of $16 per share of common stock. For the previous year, Rae paid an annual dividend of $0.96. Compute the dividend yield for Rae Corporation. If necessary, round your answer to two decimal places.
Balance sheet and income statement data indicate the following: Bonds payable, 10% (due in two years) Preferred 5% stock, $100 par (no change during year) Common stock, $50 par (no change during year) Income before income tax for year Income tax for year Common dividends paid Preferred dividends paid Interest expense Based on the data presented, what is the times interest earned ratio? Round your answer to two decimal places. 2.46 3.07 0.41 5.07 $868,000 263,400 2,167,800 353,540 81,447 108,390 13,170 86,800
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Equity method journal entries (price equals book value) Prepare journal entries for the transactions below relating to an Equity Investment accounted for using the equity method. a. An investor purchases 14,400 common shares of an investee at $16 per share; the shares represent 25% ownership in the investee and the investor concludes that it can exert significant influence over the investee. b. The investee reports net income of $172,800. c. The investor receives a cash dividend of $1.50 per common share from the investee. d. The investor sells all 14,400 common shares of the investee for $260,280. General Journal Ref. Description Debit Credit a. b. C. d. Equity investment
Questions: 1. Price-earnings ratio 2. Dividend payout ratio 3. Dividend yield ratio
Henriksen Co., which produces and sells biking equipment, is financed as follows: Bonds payable, 10% (issued at face amount) $2,500,000 Preferred $1 stock, $10 par 2,500,000 Common stock, $25 par 2,500,000 Income tax is estimated at 40% of income. Determine the earnings per share of common stock, assuming that the income before bond interest and income tax is (a) $1,050,000, (b) $1,300,000, and (c) $1,550,000.
eBook Show Me How Effect of Financing on Earnings per Share Henriksen Co., which produces and sells biking equipment, is financed as follows: Bonds payable, 10% (issued at face amount) $2,200,000 Preferred $1 stock, $10 par 2,200,000 Common stock, $25 par 2,200,000 Income tax is estimated at 40% of income. Determine the earnings per share of common stock, assuming that the income before bond interest and income tax is (a) $704,000, (b) $924,000, and (c) $1,144,000. Enter answers in dollars and cents, rounding to two decimal places. a. Earnings per share on common stock b. Earnings per share on common stock $ c. Earnings per share on common stock $
Direct Labor Variances The following data relate to labor cost for production of 4,700 cellular telephones: Actual: 3,180 hrs. at $15.90 Standard: 3,130 hrs. at $16.10 a. Determine the direct labor rate variance, direct labor time variance, and total direct labor cost variance. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number Rate variance $ Time variance Total direct labor cost variance b. The employees may have been less-experienced or poorly trained, thereby resulting in a labor rate than planned. The lower level of experience or training may have resulted in efficient performance. Thus, the actual time required was than standard.
BSF Co., which produces and sells skiing equipment, is financed as follows: Bonds payable, 10% (issued at face amount) $450,000 Preferred 1% stock, $10 par 450,000 Common stock, $25 par 450,000 Income tax is estimated at 60% of income. Round your answers to the nearest cent. a. Determine the earnings per share of common stock, assuming that the income before bond interest and income tax is $198,000.$fill in the blank 1 per share b. Determine the earnings per share of common stock, assuming that the income before bond interest and income tax is $243,000.$fill in the blank 2 per share c. Determine the earnings per share of common stock, assuming that the income before bond interest and income tax is $288,000.$fill in the blank 3 per share

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