Earnings per Share DisclosureExtreme Company reported the following information about its stock on its December 31, 2016, balance sheet:Preferred stock, $2 par value, 5% cumulative, 300,000 shares authorized, 120,000 shares issued$240,000and outstandingCommon stock, $1 par value, 500,000 shares authorized, 240,000 shares issued and outstanding240.000The following amounts were taken from Extreme's income statement:Income from continuing operations before income taxes$680,000Income tax expense(204,000)Income from continuing operations$476,000Loss from discontinued operations, net of $13,000 tax benefit (36,000)Net income$440,000The only stock issued during 2016 was 80,000 shares of common stock issued on June 30, 2016. No dividends were declared during 2016.Required:1. Calculate all earnings per share amounts for 2016. If required, round your answer to two decimals.$per share2. If the preferred stock is cumulative, the dividend for the current periodtaken into account while calculating earning per share.If the preferred stock is not cumulative, the dividendtaken into account only if it has been declared.

Earnings Per share- It is the amount of earnings that's accrued by shareholders on each share in…

Answered: Extreme Company reported the following…

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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The following balances were taken from the records of Cullumber Company: Common stock (1/1/20 and 12/31/20) $724, 200 Retained earnings 1/1/20 $ 161,000 Net income for 2023 181,000 Dividends declared in 2023 (41,000) Retained earnings, 12/31/20 301,000 Total stockholders' equity on 12/31/20 $ 1,025, 200 Marigold Company purchased 75% of Cullumber Company's common stock on January 1, 2021 for $901,500. The difference between implied value and book value is attributable to assets with a remaining useful life on January 1, 2023 of ten years. (a) Compute the difference between cost/(implied) and book value applying: Difference 1. Parent company theory $ 2. Economic unit theory $
Markus Company’s common stock sold for $4.50 per share at the end of this year. The company paid a common stock dividend of $0.63 per share this year. It also provided the following data excerpts from this year’s financial statements: EndingBalance BeginningBalance Cash $ 40,000 $ 40,200 Accounts receivable $ 84,000 $ 63,700 Inventory $ 70,600 $ 84,000 Current assets $ 194,600 $ 187,900 Total assets $ 699,000 $ 755,600 Current liabilities $ 78,000 $ 76,500 Total liabilities $ 184,000 $ 165,600 Common stock, $1 par value $ 152,000 $ 152,000 Total stockholders’ equity $ 515,000 $ 590,000 Total liabilities and stockholders’ equity $ 699,000 $ 755,600 This Year Sales (all on account) $ 980,000 Cost of goods sold $ 568,400 Gross margin $ 411,600 Net operating income $ 263,250 Interest expense $ 13,500 Net income $ 174,825 Questions: 11) What is the company’s operating cycle? (Round your intermediate and final answers to 2…
Pharoah Inc. began operations in January 2018 and reported the following results for each of its 3 years of operations. $36,000 net loss 2020 2018 $283.000 net loss 2019 At December 31, 2020, Pharoah Inc. capital accounts were as follows. 9% cumulative preferred stock, par value $100; authorized, issued. and outstanding 5,300 shares Common stock, par value $1.00; authorized 1,000,000 shares; issued and outstanding 758,000 shares $746,000 net income Book value per share $ $530,000 $758,000 Pharoah Inc. has never paid a cash or stock dividend. There has been no change in the capital accounts since Pharoah began operations. The state law permits dividends only from retained earnings. (a) Compute the book value of the common stock at December 31, 2020. (Round answers to 2 decimal places, e.g. $38.50.) Book value per share $ (b) Compute the book value of the common stock at December 31, 2020, assuming that the preferred stock has a liquidating value of $107 per share. (Round answers to 2…
Marutzky Corporation had a net income of $2,200,000 for the year 2018. On January 1, 2018, the corporation had 300,000 shares of common stock outstanding and issued an additional 250,000 shares of common stock on October 1, 2018. Calculate the earnings per shares using the weighted-average number of common shares outstanding.
On January 1, 2016, Fascom had the following account balances in its shareholders' equity accounts. Common stock, $1 par, 250,000 shares issued 250,000 Paid-in capital—excess of par, common 500,000 Paid-in capital—excess of par, preferred 100,000 Preferred stock, $100 par, 10,000 shares outstanding 1,000,000 Retained earnings 2,000,000 Treasury stock, at cost, 5,000 shares 25,000 During 2016, Fascom Inc. had several transactions relating to common stock. January 15: Declared a property dividend of 100,000 shares of Slowdown Company (book value $10 per share, market value $9 per share). February 17: Distributed the property dividend. April 10: A 2-for-1 stock split was declared and distributed on outstanding common stock and effected in the form of a stock dividend. The market value of the stock was $4 on this date. July 18: Declared and distributed a 3% stock dividend on outstanding common stock. The market value is $5 per share. December 1: Declared a 50 cents per share cash dividend…
The following selected data were taken from the financial statements of Vidahill Inc. for December 31, 2017, 2016, and 2015: * December 31 December 31 December 31 20Y7 20Y6 2015 Total assets $259,000 $233,000 $207,000 Notes payable (8% interest) 90,000 90,000 90,000 Common stock 36,000 36,000 36,000 - Preferred 6% stock, $100 par (no change during year) 18,000 18,000 18,000 Retained earnings 102,320 68,120 54,000 The 2017 net income was $35,280, and the 20Y6 net income was $15,200. No dividends on common stock were declared between 2005 and 20Y7. Preferred dividends were declared and paid in full in 20Y6 and 2017. a. Determine the return on total assets, the return on stockholders' equity, and the return on common stockholders' equity for the years 2016 and 2017. When required, round your answers to one decimal place. Return on total assets Return on stockholders' equity Return on common stockholders' equity 2017 20Y6 17.3 % 10.2 25.3 % 13.2 % 21.7 X % 6.4 X % ✓. Since the return on…
Luther Corporation Consolidated Income Statement Year ended December 31 (in $ millions) Total sales Cost of sales Gross profit Selling, general, and administrative expenses Research and development Depreciation and amortization Operating income Other income Earnings before interest and taxes (EBIT) Interest income (expense) Pretax income Taxes Net income Price per share Shares outstanding (millions) Stock options outstanding (millions) Stockholders' Equity Total Liabilities and Stockholders' Equity 2012 610.1 (500.2) 109.9 (40.5) (24.6) (3.6) 41.2 --- $16 10.2 126.6 2011 578.3 (481.9) 96.4 41.2 31.3 (25.1) (15.8) # 16.1 (5.5) 15.5 (5.3) 10.2 10.6 533.1 (39.0) (22.8) (3.3) 31.3 $15 8.0 0.2 502 63.6 386.7 Calculate Luther's price - earnings ratio (P/E) for the year ending December 31, 2012
The following information was taken from the financial statements of Tolbert Inc. for December 31 of the current fiscal year: Common stock, $30 par value (no change during the year) $5,400,000 Preferred $5 stock, $100 par (no change during the year) 2,000,000 The net income was $604,000 and the declared dividends on the common stock were $45,000 for the current year. The market price of the common stock is $22.40 per share. For the common stock, determine (a) the earnings per share, (b) the price-earnings ratio, (c) the dividends per share, and (d) the dividend yield. If required, round your answers to two decimal places. a. Earnings per Share $fill in the blank 1 b. Price-Earnings Ratio fill in the blank 2 c. Dividends per Share $fill in the blank 3 d. Dividend Yield fill in the blank 4 %
Talaat Corporation had retained earnings at January 1, 2017, of $950,000. the Corporation had 500,000 shares of $ 2.5 par value common stock outstanding throughout 2017. Net income for 2017 was $520,000. The following transactions occurred during 2017: July 1 A cash dividends of $0.5 per share was declared to stockholders of record on July 20. Aug. 1 Paid the cash dividends. Nov. 1 A 7% stock dividends was declared. The market price at the declaration date was $9 per share. Dec. 15 Distributed the stock dividends shares.2-Prepare a retained earnings statement for 2017.
At the beginning of 2017, Vincia Hill Industries had 25,000 shares of common stock issued and outstanding and 500 $1,000, 6% bonds, each convertible into 10 shares of common stock. During 2017, Vincia Hill had revenues of $160,000 and expenses other than interest and taxes of $100,000. Assume that the tax rate is 35%. None of the bonds was converted or redeemed. 1. Compute diluted earnings per share for 2017

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