Question Content Area The following information pertains to Diane Company. Assume that all balance sheet amounts represent both average and ending balance figures and that all sales were on credit. Use this information to answer the question that follow. Assets Cash and short-term investments $30,000 Accounts receivable (net) 20,000 Merchandise inventory 15,000 Property, plant, and equipment 185,000 Total assets $250,000 Liabilities and Stockholders' Equity Current liabilities $45,000 Long-term liabilities 70,000 Stockholders' equity—common 135,000 Total liabilities and stockholders' equity $250,000 Income Statement Sales $85,000 Cost of merchandise sold 45,000 Gross profit $40,000 Operating expenses (15,000) Interest expense (5,000) Net income $20,000 Number of shares of common stock outstanding 6,000 Market price per share of common stock $20 Total dividends paid $9,000 Net cash flows from operating activities $30,000 Using the data provided for Diane Company, what are the dividends per common share?
Question Content Area The following information pertains to Diane Company. Assume that all balance sheet amounts represent both average and ending balance figures and that all sales were on credit. Use this information to answer the question that follow. Assets Cash and short-term investments $30,000 Accounts receivable (net) 20,000 Merchandise inventory 15,000 Property, plant, and equipment 185,000 Total assets $250,000 Liabilities and Stockholders' Equity Current liabilities $45,000 Long-term liabilities 70,000 Stockholders' equity—common 135,000 Total liabilities and stockholders' equity $250,000 Income Statement Sales $85,000 Cost of merchandise sold 45,000 Gross profit $40,000 Operating expenses (15,000) Interest expense (5,000) Net income $20,000 Number of shares of common stock outstanding 6,000 Market price per share of common stock $20 Total dividends paid $9,000 Net cash flows from operating activities $30,000 Using the data provided for Diane Company, what are the dividends per common share?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question Content Area
The following information pertains to Diane Company. Assume that all
| Assets | |
| Cash and short-term investments | $30,000 |
| 20,000 | |
| Merchandise inventory | 15,000 |
| Property, plant, and equipment | 185,000 |
| Total assets | $250,000 |
| Liabilities and |
|
| Current liabilities | $45,000 |
| Long-term liabilities | 70,000 |
| Stockholders' equity—common | 135,000 |
| Total liabilities and stockholders' equity | $250,000 |
| Income Statement | |
| Sales | $85,000 |
| Cost of merchandise sold | 45,000 |
| Gross profit | $40,000 |
| Operating expenses | (15,000) |
| Interest expense | (5,000) |
| Net income | $20,000 |
| Number of shares of common stock outstanding | 6,000 | |
| Market price per share of common stock | $20 | |
| Total dividends paid | $9,000 | |
| Net |
$30,000 |
Using the data provided for Diane Company, what are the dividends per common share?
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