S.B. Industries began the year with 400,000 shares of $1 par common stock and retained earnings of $2,000,000. Early in the year, S.B. declared and distributed a 40%stock dividend when shares were trading at $6 per share. Near the end of the year, S. B. declared a cash dividend of $0.50 per share, payable in the following year. S.B.'send of the year retained earnings balance was: Select one: a. $760,000 b. None of the Retained Earnings amounts are correct. c. $1,720,000 d. $1,560,000 e. $1,640,000

A retained earnings account shows the accumulated profits earned by an organization during its…

Answered: S.B. Industries began the year with…

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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During the year, Cellular Land, Inc. issued 1,500 shares of its $0.50 stated value common stock for $15 per share, and declared and paid cash dividends totaling $0.25 per share. By what amount does contributed capital increase as a result of these events? $22,500 $750 $21,750 $22,125
Pharoah Company has 496000 shares of $10 par value common stock outstanding. During the year Pharoah declared a 15% stock dividend when the market price of the stock was $34 per share. Three months later Pharoah declared a $0.60 per share cash dividend. As a result of the dividends declared during the year, retained earnings decreased by $2529600. $491040. $2871840. $467600.
Xijiang issued 1000 shares at the beginning of fiscal year (t=0), and the net profit at the end of fiscal year (t=1) is expected to be 2million won. (zhuxijiang plans to pay a total of 800000 won as dividends to shareholders at the end of the accounting year, and the rest will be retained for internal reinvestment. (Zhou) the average self capital profit margin (roe= current net profit of the accounting year / self capital at the beginning of the accounting year) of Xijiang in each accounting year will be maintained at 20%. (shares) Xijiang's dividend policy and self capital profit margin will continue to be maintained. The annual required rate of return (RRR) of the enterprise in the market is 16%. If the dividend growth rate (or profit growth rate) of the company is equal to the return on self capital (ROE) multiplied by the internal retention rate, please answer the following questions. The dividend discount model is used to calculate the stock price at the beginning of the…
On October 1, 2021, Margrethe Corporation declared and issued a 10% stock dividend.Before this date, Margrethe had 800,000 shares of $5 par common stock outstanding.The market value of Margrethe Corporation on the date of declaration was $10 pershare. As a result of this dividend, Margrethe's retained earnings will:a. Decrease by $800,000. c. Decrease by $400,000.b. Not change. d. Increase by $800,000.
The outstanding share capital of KTI Corporation consists of 2,950 preferred shares and 7,000 common shayes for which $280,000 was received. The preferred shares carry a dividend of $7 per share and have $100 stated value. Instructions: Assuming that the company has retained earnings of $95,000 that is to be entirely paid out in dividends and that preferred dividends were not paid during the two years preceding the current year, state how much each class of shares should receive under each of the following conditions. a. The preferred shares are cumulative and non-participating. b. The preferred shares are cumulative and participating. Do not round intermediate calculations but round answer to nearest dollar.
Sheffield Corporation began business by issuing 401000 shares of $5 par value common stock for $24 per share. During its first year, the corporation sustained a net loss of $39200. The year-end balance sheet would show O Common stock of $2005000. O Common stock of $9624000. O Total paid-in capital of $2044200. O Total paid-in capital of $9584800.
McDonnell-Myer Corporation reported net income of $1,450 million. The company had 469 million common shares outstanding at January 1 and sold 42 million shares on February 28. As part of an annual share repurchase plan, 6 million shares were retired on April 30 for $32 per share. Calculate McDonnell-Myer's earnings per share for the year. (Do not round intermediate calculations. Round your final answer to 2 decimal places.)
Bernie Bird Co. has 260,000 outstanding (P10 par) ordinary shares and retained earnings balance of P1,780,000 on January 1, 20x1. During the year, Bernie acquired 2,000 treasury shares at P18 per share and reissued them at P22 before year-end. Bernie earned profit of P2,260,000 in 20x1. On December 31, 20x1, Bernie declared P8 cash dividends per share and "1-for-20" stock dividends, both to be distributed on February 1, 20x2. The fair value per share on December 31, 20x1 was P22. What amount of retained earnings should Berni report on December 31, 20x1? O 1,674,000 O 1,642,000 O 1,582,000 O 1,682,000
ABC Company had addition to retained earnings for the current fiscal year just ended of $395,000. The firm paid out $195,000 in cash dividend, and it has ending total equity of $5.3 million. The company currently has 170,000 shares of common stock outstanding. Please answer the following questions: What are earnings per share (E/PS)? Dividends per share? Book value of share? If the stock currently sells for $64 per share, what is the market-to-book ratio? The price to earnings ratio (P/E)? The company had sales of $5.15 million, what is the price to sales ratio (P/S)? Finally, explain the implication of P/E ratio for different types of investors.
Terrance Company reported $20,000 retained earnings at the beginning of the year. The company repurchased 200 shares at $50 per share during the year for the first time. Later, during the year the company sold 100 shares of these treasury shares for $45 per share. Terrance earned $15,000 net income during the year. The company also declared and paid dividends on 500 outstanding 4% preferred stock with $100 par value. Based on this information alone, compute the retained earnings balance at the end of the year. O $34,500 O $35,000 O $32,500 O $32,000 O $37,500
For the year 20X1, Trinity Ltd., a company based in Barrie, had net income of $4,000,000 and there were no discontinued operations. During 20X1, the company had two classes of shares outstanding: Class A preferred shares: 1,200 shares issued and outstanding at the beginning of the year; quarterly dividend rate of $100 per share; cumulative; each share is convertible into 50 shares of Class B common. Class B common shares: 150,000 shares issued and outstanding at the beginning of the year. Also note the following: 700 shares of Class A were converted into Class B shares on April 1 20X1; dividends for the first quarter of the year were paid on March 31 20X1. Options to issue 8,000 common shares to senior management personnel for $4 per share were outstanding during the entire year. The average share price during the year was $12. Required: (a) Determine the weighted-average number of shares outstanding during 20X1. (b) Determine basic EPS. (c) Determine diluted EPS.

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