Current Attempt in ProgressPharoah Company has $1,140,000 in assets and $1.140,000 in stockholders' equity, with 42,600 shares outstanding the entire year. Ithas a return on assets of 10%. During 2021, it had net income of $114,000. On January 1, 2022, it issued $393,000 in debt at 4% andimmediately repurchased 21,300 shares for $393,000. Management expected that, had it not issued the debt, it would have had netincome of $114,000 in 2022. Assume the company pays dividends on common stock equal to its net income each year. Also, assumethe accrued interest on the debt was paid at December 31, 2022 and the company has no other debt outstanding at year-end.Determine the company's net income and earnings per share for 2021 and 2022. (Ignore taxes in your computations) (Roundearnings per share to 2 decimal places, eg. $2.66)Net income$Earnings per share $2021Return on common stockholders' equityDebt to assets ratioCompute the company's return on common stockholders' equity for 2021 and 2022. (Round answers to 2 decimal places, eg15.25%)$202120222021Compute the company's debt to assets ratio for 2021 and 2022. (Round answers to 2 decimal places, eg. 15.25%)20222022

Sales less cost of goods sold, selling, general and administrative costs, operating costs,…

Answered: Pharoah Company has $1,140,000 in…

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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AUBURN Corporation had 120,000 of ordinary shares issued and outstanding at January 1, 2021. OnOn January 2 of the same year, the company issued 80,000 preference shares. During the year, the corporation declared and paid P420,000 cash dividend on the ordinary shares and P240,000 on the preference shares. Net income for the year was P1,500,000. What should be the basic earnings per share in 2021? A. ₱ 10.50 B. ₱ 9.00 C. ₱ 15.75 D. ₱ 12.50
Yellow Enterprises reported the following ($ in thousands) as of December 31, 2024. All accounts have normal balances. Deficit (debit balance in retained earnings) $ 2,300 Common stock 3,800 Paid-in capital—share repurchase 1,800 Treasury stock (at cost) 300 Paid-in capital—excess of par 31,100 During 2025 ($ in thousands), net income was $9,700; 25% of the treasury stock was resold for $600; cash dividends declared were $630; cash dividends paid were $460. What ($ in thousands) was shareholders' equity as of December 31, 2025?
Blossom Corporation has outstanding 150,000 common shares that were issued at $12 per share. The balances at January 1, 2023, were $19 million in its Retained Earnings account: $4.10 million in its Contributed Surplus account, and $0.90 million in its Accumulated Other Comprehensive Income account. During 2023, Blossom's net income was $3,300,000 and comprehensive income was $3,450,000. A cash dividend of $0.80 per share was declared and paid on June 30, 2023, and a 6% stock dividend was declared at the fair value of the shares and distributed to shareholders of record at the close of business on December 31, 2023. You have been asked to give advice on how to properly account for the stock dividend. The existing company shares are traded on a national stock exchange. The shares' market price per share has been as follows: Oct. 31, 2023 Nov. 30, 2023 Dec. 31, 2023 Average price over the two-month period (a) $31 34 Account Titles and Explanation 38 35 Prepare a journal entry to record…
Stone Company reported net income of $4,500,000 in 2024. The weighted average number of common shares outstanding during 2024 was 200,000 shares. Stone paid $ 250,000 in dividends on preferred stock, which was convertible into 40,000 shares of common stock. How much is basic earnings per share for 2024?
At the beginning of 2020, tradewell Mktg. Corp. had retained earnings of P5,000,000. Throughout the year, the company had 20,000 shares of P100 par value ordinary shares that are issued and outstanding. During the year 2020 Tradewell Mktg. corp reportd profit of P2,500,000, purchased a treasury chares of P750,000 declared a cash dividends of 2,000,000, reissued all treasury shares at a gain of PI80,000 and dedared and issued 5000 shares as bonus issue when the market value was 150 per share. 1. what is the retained earning balance at December 3l, 2020. 2. Assuming that there are 50,000 issued and outstanding ( instead of 20,000 shares). What is the retained earnings balance at december 3l, 2020?
In 2020, Pennington Corporation had net sales of $600,000 and cost of goods sold of $360,000. Operating expenses were $153,000, and interest expense was $7,500. The corporation’s tax rate is 30%. The corporation declared preferred dividends of $15,000 in 2020, and its average common stockholders’ equity during the year was $200,000. Instructions a. Prepare an income statement for Pennington Corporation. b. Compute Pennington Corporation’s return on common stockholders’ equity for 2020.
Sheridan Corporation had net income of $470000 and paid dividends to common stockholders of $34780 in 2020. The weighted average number of shares outstanding in 2020 was 61000 shares. Sheridan Corporation's common stock is selling for $45 per share on the New York Stock Exchange. Sheridan Corporation's payout ratio for 2020 is 12.98%. 14.80%. 7.40%. $7.70 per share.
Keokuk Corp. had the following operating results for 2021 & 2020. Keokuk paid dividends of $100,000 per year for both years and made capital expenditures of $45,000 in both years. The company's stock price in 2021 was $12.00 and $10.00 in 2020. In 2021, the industry average earnings multiple was 10, the free cash flow multiple was 20 and sales multiple was 2.00. Thecompany is publicly owned and has 1,050,000 shares of outstanding stock at the end of 2021. A. Calculate the 2021 market value of the company. B. Compare Keokuk’s Equity Book Value to the Market Value. Discuss conceptually (not differences in the numerical calculations) the difference between these two amounts.
Indigo Company's net income for 2025 is $641,000, and 79,000 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 $19.50; none of these have been exercised. The average market price of Indigo's stock during 2025 was $25. (a) Compute diluted earnings per share. (Round answer to 2 decimal places, e.g. 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 $28.50. (Round answer to 2 decimal places, e.g. 2.55.) Diluted earnings per share $
Listed below are the transactions that affected the shareholders’ equity of Branch-Rickie Corporation during the period 2021–2023. At December 31, 2020, the corporation’s accounts included: ($ in thousands) Common stock, 117 million shares at $1 par $ 117,000 Paid-in capital—excess of par 702,000 Retained earnings 960,000 November 1, 2021, the board of directors declared a cash dividend of $0.90 per share on its common shares, payable to shareholders of record November 15, to be paid December 1. On March 1, 2022, the board of directors declared a property dividend consisting of corporate bonds of Warner Corporation that Branch-Rickie was holding as an investment. The bonds had a fair value of $3.3 million, but were purchased two years previously for $2.9 million. Because they were intended to be held to maturity, the bonds had not been previously written up. The property dividend was payable to shareholders of record March 13, to be distributed April 5.…
Torres Company began business on June 30, 2018. At that time, it issued 17,500 shares of $40 par value, 8% cumulative preferred stock and 70,000 shares of $5 par value common stock. Through the end of 2020, there has been no change in the number of preferred and common shares outstanding.a. Assume the company declared and paid cash dividends of $72,100 in 2018, $0 in 2019, and $322,700 in 2020. Compute the total cash dividends and the dividends per share paid to each class of stock in 2018, 2019, and 2020. 2018 Total Dividends Dividends per Share Preferred shareholders: Answer Answer Common shareholders: Answer Answer 2019 Total Dividends Dividends per Share Preferred shareholders: Answer Answer Common shareholders: Answer Answer 2020 Total Dividends Dividends per Share Preferred shareholders: Answer Answer Common shareholders: Answer Answer
On January 1, 2021, Eugene Co. had retained earnings of P1,240,000. During 2021, the co. earned net income of P456,000. The following transactions occurred:a. Cash dividends of P12 per share on 42,000 shares of ordinary shares were declared and paid.b. A small share dividend was declared and issued. The dividend consisted of 6,620 shares of P25 par ordinary share. On the date of declaration, the market price of the company’s ordinary share was P34 per share.c. The co. recalled and retired 12,100 shares of P50 par preferred share. The call price was P93 per share; the share had originally been issued for P80 per share. d. The Eugene discovered that it had erroneously recorded depreciation expense of P200,000 in 2019 for both financial and tax reporting. The correct depreciation for 2019 had been P275,000. This is considered a material error. Assume tax rate of 25%. The balance of retained earnings on December 31, 2021:

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