Reporting Stockholder’s EquityBooner Company began business this year and immediately sold 600.000 common shares for $18,000,000 cash and paid $1,000,000 in common dividends. At midyear, the firm brought back some of its own shapes. The company reports the following additional information at year end: Net Income $5,000,000Common stock at par $6,000,000Retained earnings beginning of the year $0Common shares authorized $1,000,000Common shares outstanding $ 550,000 d. Determine the retained earnings amount at the end of the year. e. How many shares of stock are in the treasury at the end of the year? f. Compute the BEPS?

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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Reporting Stockholder’s Equity
Booner Company began business this year and immediately sold 600.000 common shares for $18,000,000 cash and paid $1,000,000 in common dividends. At midyear, the firm brought back some of its own shapes. The company reports the following additional information at year end:

Net Income $5,000,000
Common stock at par $6,000,000
Retained earnings beginning of the year $0
Common shares authorized $1,000,000
Common shares outstanding $ 550,000


d. Determine the retained earnings amount at the end of the year.
e. How many shares of stock are in the treasury at the end of the year?
f. Compute the BEPS?

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