Melrose Corporation began 2025 with $16,000 in stockholders' equity. Of this amount, $10,000 was in common stock, and there were no changes in the common stock account during 2025. At December 31, 2025, Melrose had $18,500 in stockholders' equity. Melrose paid out $6,000 in dividends during the year. How much was its net income in 2025? a. $8,500 b. $18,500 c. $2,500 d. $6,000 e. None of the above

Melrose Corporation began 2025 with $16,000 in stockholders' equity. Of this amount, $10,000 was in common stock, and there were no changes in the common stock account during 2025. At December 31, 2025, Melrose had $18,500 in stockholders' equity. Melrose paid out $6,000 in dividends during the year. How much was its net income in 2025? a. $8,500 b. $18,500 c. $2,500 d. $6,000 e. None of the above

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 18E: Monona Company reported net income of 29,975 for 2019. During all of 2019, Monona had 1,000 shares...

See similar textbooks

Similar questions

Monona Company reported net income of 29,975 for 2019. During all of 2019, Monona had 1,000 shares of 10%, 100 par, nonconvertible preferred stock outstanding, on which the years dividends had been paid. At the beginning of 2019, the company had 7,000 shares of common stock outstanding. On April 2, 2019, the company issued another 2,000 shares of common stock so that 9,000 common shares were outstanding at the end of 2019. Common dividends of 17,000 had been paid during 2019. At the end of 2019, the market price per share of common stock was 17.50. Required: 1. Compute Mononas basic earnings per share for 2019. 2. Compute the price/earnings ratio for 2019.
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.
Errol Corporation earned net income of $200,000 this year. The company began the year with 10,000 shares of common stock and issued 5,000 more on April 1. They issued $7,500 in preferred dividends for the year. What is the numerator of the EPS calculation for Errol?
Rebert Inc. showed the following balances for last year: Reberts net income for last year was 3,182,000. Refer to the information for Rebert Inc. above. Also, assume that the dividends paid to common stockholders for last year were 2,600,000 and that the market price per share of common stock is 51.50. Required: 1. Compute the dividends per share. 2. Compute the dividend yield. (Note: Round to two decimal places.) 3. Compute the dividend payout ratio. (Note: Round to two decimal places.)
Longmont Corporation earned net income of $90,000 this year. The company began the year with 600 shares of common stock and issued 500 more on April 1. They issued $5,000 in preferred dividends for the year. What is the numerator of the EPS calculation for Longmont?
Tamarisk Corporation reported net income of $398,120 in 2025 and had 206,000 shares of common stock outstanding throughout the year. Also outstanding all year were 34,500 options to purchase common stock at $11 per share. The average market price of the stock during the year was $15. Compute diluted earnings per share. (Round answer to 2 decimal places, e.g. 3.55.) Diluted earnings per share $
Minnesota Manufacturing's balance sheet showed total common equity of $3,000,000 and 500,000 shares of stock outstanding on 12/31/2019. During 2020, the firm had $630,000 of net income, and it paid out $150,000 in dividends. What was the book value per share on 12/31/2020, assuming no common stock was issued or retired during 2020?
Madison Corporation began 2025 with $24,000 in stockholders' equity. Of this amount, $15,000 was in common stock, and there were no changes in the common stock account during 2025. At December 31, 2025, Madison had $28,000 in stockholders' equity. Madison paid out $9,000 in dividends during the year. How much was its net income in 2025? correct answer
Tamarisk Company's net income for 2025 is $598.000, and 84,000 shares of common stock were issued and outstanding during 2025. The only potentially dilutive securities outstanding were 27,000 executive stock options issued during 2024, each exercisable for one share at $19.00, none of these have been exercised. The average market price of Tamarisk's stock during 2025 was $25. (a) Compute diuted earnings per share. (Round answer to 2 decimal places, eg 2.55) Diluted earnings per share $ (b) Assume the same facts as those assumed for part (a), except that 10.000 additional options were issued on October 1, 2025, with an exercise price of $26 (the market price of the common stock on that date). The average market price during the last 3 months of 2025 was $28.00. (Round answer to 2 decimal places, eg. 2.55) Diluted earnings per share $
Skysong Co. reports the following information for 2025: sales revenue $776,200, cost of goods sold $517,000, operating expenses $90,200, and an unrealized holding loss on available-for-sale debt securities for 2025 of $60,700. It declared and paid a cash dividend of $12,430 in 2025. Skysong Co. has January 1, 2025, balances in common stock $369,200; accumulated other comprehensive income $88,300; and retained earnings $98,980. It issued no stock during 2025. Prepare a statement of stockholders' equity. (Ignore income taxes.) > > Total SKYSONG CO. Statement of Stockholders' Equity LA Retained Earnings Accumulated Other Comprehensive Income
At the beginning of the year, ABC Company had a retained earnings balance of $100,000. During the year, the company discovered that cost of goods sold was understated by $20,000 in 2018. Net income for 2020 is $40,000, the company declared $10,000 in cash dividends to common shareholders and declared a 10% stock dividend when the market price of the stock was $20. The par value of the stock is $5 a share. Assume that there are 50,000 shares of common stock outstanding all year. The company recognized an unrealized loss on available-for-sale securities. Determine the ending balance of retained earnings at December 31, 2020.
An analyst compiled the following information for U Inc. for the year ended December 31, 2021: . Net income was $1,960,000. Depreciation expense was $530,000. . Interest paid was $265,000. Income taxes paid were $132,500. . . . Common stock was sold for $226,000. Preferred stock (8% annual dividend) was sold at par value of $276,000. . Common stock dividends of $76,000 were paid. Preferred stock dividends of $22,080 were paid. Equipment with a book value of $126,000 was sold for $252,000. • . . Using the indirect method, what was U Inc.'s net cash flow from operating activities for the year ended December 31, 20213 Multiple Choice