Lark had net income for 2024 of $106,000. Lark had 35.000 shares of common stock outstanding at the beginning of the year and 43,000 shares of common stock outstanding at the end of theyear. There were 7,000 shares of preferred stock outstanding all year. During 2024, Lark declared and paid preferred dividends of $30,000. On December 31, 2024, the market price of Lark'scommon stock is $28 per share and the market price of its preferred stock is $60 per share. What is Lark's pricelearnings ratio at December 31, 2024? (Round any intermediate calculationsand your final answer to two decimal places)OA. 103OB. 11.36OC. 14.36OD. 30.77CED

Earnings per share is calculated by dividing earnings available to common stockholders' by weighted…

Lark had net income for 2024 of $106.000. Lark had 35.000 shares of common stock outstanding at the beginning of the year and 43,000 shares of e year. There were 7.000 shares of preferred stock outstanding all year. During 2024, Lark declared and paid preferred dividends of $30,000. On Decem common stock is $28 per share and the market price of its preferred stock is $60 per share. What is Lark's priceleamings ratio at December 31, 2024 and your final answer to two decimal places) OA 103 OB 11.36 OC. 14.36 OD. 30.77

Lark had net income for 2024 of $106.000. Lark had 35.000 shares of common stock outstanding at the beginning of the year and 43,000 shares of e year. There were 7.000 shares of preferred stock outstanding all year. During 2024, Lark declared and paid preferred dividends of $30,000. On Decem common stock is $28 per share and the market price of its preferred stock is $60 per share. What is Lark's priceleamings ratio at December 31, 2024 and your final answer to two decimal places) OA 103 OB 11.36 OC. 14.36 OD. 30.77

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter16: Retained Earnings And Earnings Per Share

Section: Chapter Questions

Problem 24E

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Anoka Company reported the following selected items in the shareholders equity section of its balance sheet on December 31, 2019, and 2020: In addition, it listed the following selected pretax items as a December 31, 2019 and 2020: The preferred shares were outstanding during all of 2019 and 2020; annual dividends were declared and paid in each year. During 2019, 2,000 common shares were sold for cash on October 4. During 2020, a 20% stock dividend was declared and issued in early May. At the end of 2019 and 2020, the common stock was selling for 25.75 and 32.20, respectively. The company is subject to a 30% income tax rate. Required: 1. Prepare the comparative 2019 and 2020 income statements (multiple-step), and the related note that would appear in Anokas 2020 annual report. 2. Next Level Compute the price/earnings ratio for 2020. How does this compare to 2019? Why is it different?
Lyon Company shows the following condensed income statement information for the year ended December 31, 2019: Lyon declared dividends of 6,000 on preferred stock and 17,280 on common stock. At the beginning of 2019, 10,000 shares of common stock were outstanding. On May 1, 2019, the company issued 2,000 additional common shares, and on October 31, 2019, it issued a 20% stock dividend on its common stock. The preferred stock is not convertible. Required: 1. Compute the 2019 basic earnings per share. 2. Show the 2019 income statement disclosure of basic earnings per share. 3. Draft a related note to accompany the 2019 financial statements.
Cash dividends on the 10 par value common stock of Garrett Company were as follows: The 4th-quarter cash dividend was declared on December 21, 2019, to shareholders of record on December 31, 2019. Payment of the 4th-quarter cash dividend was made on January 18, 2020. In addition, Garrett declared a 5% stock dividend on its 10 par value common stock on December 3, 2019, when there were 300,000 shares issued and outstanding and the market value of the common stock was 20 per share. The shares were issued on December 24, 2019. What was the effect on Garretts shareholders equity accounts as a result of the preceding transactions?
Raun Company had the following equity items as of December 31, 2019: Preferred stock, 9% cumulative, 100 par, convertible Paid-in capital in excess of par value on preferred stock Common stock, 1 stated value Paid-in capital in excess of stated value on common stock| Retained earnings The following additional information about Raun was available for the year ended December 31, 2019: 1. There were 2 million shares of preferred stock authorized, of which 1 million were outstanding. All 1 million shares outstanding were issued on January 2, 2016, for 120 a share. The preferred stock is convertible into common stock on a 1-for-1 basis until December 31, 2025; thereafter, the preferred stock ceases to be convertible and is callable at par value by the company. No preferred stock has been converted into common stock, and there were no dividends in arrears at December 31, 2019. 2. The common stock has been issued at amounts above stated value per share since incorporation in 2002. Of the 5 million shares authorized, 3,580,000 were outstanding at January 1, 2019. The market price of the outstanding common stock has increased slowly but consistently for the last 5 years. 3. Raun has an employee share option plan where certain key employees and officers may purchase shares of common stock at 100% of the marker price at the date of the option grant. All options are exercisable in installments of one-third each year, commencing 1 year after the date of the grant, and expire if not exercised within 4 years of the grant date. On January 1, 2019, options for 70,000 shares were outstanding at prices ranging from 47 to 83 a share. Options for 20,000 shares were exercised at 47 to 79 a share during 2019. During 2019, no options expired and additional options for 15,000 shares were granted at 86 a share. The 65,000 options outstanding at December 31, 2019, were exercisable at 54 to 86 a share; of these, 30,000 were exercisable at that date at prices ranging from 54 to 79 a share. 4. Raun also has an employee share purchase plan whereby the company pays one-half and the employee pays one-half of the market price of the stock at the date of the subscription. During 2019, employees subscribed to 60,000 shares at an average price of 87 a share. All 60,000 shares were paid for and issued late in September 2019. 5. On December 31, 2019, there was a total of 355,000 shares of common stock set aside for the granting of future share options and for future purchases under the employee share purchase plan. The only changes in the shareholders equity for 2019 were those described previously, the 2019 net income, and the cash dividends paid. Required: Prepare the shareholders equity section of Rauns balance sheet at December 31, 2019. Substitute, where appropriate, Xs for unknown dollar amounts. Use good form and provide full disclosure. Write appropriate notes as they should appear in the publisher financial statements.
Percy Company has 15,000 shares of common stock outstanding during all of 2019. It also has 2 convertible securities outstanding at the end of 2019. These are: 1. Convertible preferred stock: 1,000 shares of 9%, 100 par, preferred stock were issued in 2015 for 140 per share. Each share of preferred stock is convertible into 3.5 shares of common stock. The current dividends have been paid. To date, no preferred stock has been converted. 2. Convertible bonds: Bonds with a face value of 100,000 and an interest rate of 10% were issued at par on July 1, 2019. Each 1,000 bond is convertible into 35 shares of common stock. To date, no bonds have been converted. Percy earned net income of 54,000 during 2019. Its income tax rate is 30%. Required: Compute the 2019 diluted earnings per share. What earnings per share amount(s) would Percy report on its 2019 income statement?
Daniel Corporation had net income for 2024 of $73,000. Daniel had 15,000 shares of common stock outstanding at the beginning of the year and 20,000 shares of common stock outstanding at the end of the year. There were 8,000 shares of preferred stock outstanding all year. During 2024, Daniel declared and paid preferred dividends of $19,000. On December 31, 2024, the market price of Daniel's common stock is $50 per share and the market price of its preferred stock is $71 per share. What is Daniel's price/earnings ratio at December 31, 2024? (Round any intermediate calculations and your final answer to the nearest cent.) OA. 22.98 OB. 13.7 OC. 16.18 OD. 17.02
Kimber Inc. reported net income of $177,500 during 2021. At January 1, 2021 Kimber had 100,000 shares of $5 par value common shares outstanding and 2,500 shares of $100 par value 8% cumulative preferred shares outstanding. On October 1, Kimber sold 10,000 shares of common stock for $6 per share. What is the Basic eps for 2021 that Kimber would report? If each share of preferred stock is convertible into 8 shares of common stock, what amount of diluted eps would Kimber report for 2021?
On December 31, 2023, the Bennett Company had 110,000 shares of common stock issued and outstanding. On July 1, 2024, the company sold 19,000 additional shares for cash. Bennett's net income for the year ended December 31, 2024, was $610,000. During 2024, Bennett declared and paid $75,000 in cash dividends on its nonconvertible preferred stock. What is the 2024 basic earnings per share? Multiple Choice O O O $5.10 $4.86 $4.48 None of these answer choices are correct.
On December 31, 2020, the Frisbee Company had 262,000 shares of common stock issued and outstanding. On March 31, 2021, the company sold 62,000 additional shares for cash. Frisbee's net income for the year ended December 31, 2021, was $820,000. During 2021, Frisbee declared and paid $92,000 in cash dividends on its nonconvertible preferred stock. What is the 2021 basic earnings per share? (Round final answers to 2 decimal places.)
The net income of Monarch Skate Inc. amounted to $3,750,000 for the year ended December 31, 2020. There were 225,000, $10.00 cumulative preferred shares throughout the year. At January 1, 2020, Monarch Skate had 300,000 common shares outstanding, and issued 44,000 common shares on April 1. Then, on October 1, there was a 3-for-1 stock split of the common shares. Calculate Monarch Skate Inc.'s EPS. Calculate the Monarch Skate Inc.'s EPS. (Round your final answer to the nearest cent.) Monarch Skate Inc.'s EPS is S
Tomba Corporation had 300,000 shares of common stock outstanding on January 1, 2020. On May 1, Tomba issued 30,000 shares. (a) Compute the weighted-average number of shares outstanding if the 30,000 shares were issued for cash. (b) Compute the weighted-average number of shares outstanding if the 30,000 shares were issued in a stock dividend.
Frenchroast Company earned net income of $93,000 during the year ended December 31, 2020. On December 15, Frenchroast declared the annual cash dividend on its 4% preferred stock (par value, $128,000) and a $0.55 per share cash dividend on its common stock (67,000) shares. Note: When entering percent values, write the value as a percent without the percent (96) symbol. Frenchroast then paid the dividends on January 4, 2021. Calculate Dividends: Preferred Dividends - Dividend percent X par value Common Dividends - Share price X # of shares Total Dividend Preferred Dividends- Common Dividends Total Dividend Date December 15 January 4 Description X Debit Credit