Sheridan Inc. began operations in January 2023 and reported the following results for each of its 3 years of operations. 2023 2024 2025 $265,000 net loss 42,000 net loss 843,000 net income At December 31, 2025, Sheridan Inc. capital accounts were as follows. 8% cumulative preferred stock, par value $100; authorized, issued, and outstanding 4,500 shares Common stock, par value $1.00; authorized 1,000,000 shares; issued and outstanding 778,000 shares $450,000 $778,000 Sheridan Inc. has never paid a cash or stock dividend. There has been no change in the capital accounts since Sheridan began operations. The state law permits dividends only from retained earnings. a. Compute the book value of the common stock at December 31, 2025. (Round answers to 2 decimal places, e.g. 38.50.) Book value per share ? $ 1.58 E SUPPORT b. Compute the book value of the common stock at December 31, 2025, assuming that the preferred stock has a liquidating value of $105 per share. (Round answers to 2 decimal places, e.g. 38.50.) Book value per share?
Sheridan Inc. began operations in January 2023 and reported the following results for each of its 3 years of operations.
2023
2024
2025
$265,000 net loss
42,000 net loss
843,000 net income
At December 31, 2025, Sheridan Inc. capital accounts were as follows.
8% cumulative
Common stock, par value $1.00; authorized 1,000,000 shares; issued and outstanding 778,000 shares
$450,000
$778,000
Sheridan Inc. has never paid a cash or stock dividend. There has been no change in the capital accounts since Sheridan began operations. The state law permits dividends only from
a. Compute the book value of the common stock at December 31, 2025. (Round answers to 2 decimal places, e.g. 38.50.)
Book value per share ?
$
1.58
E SUPPORT
b. Compute the book value of the common stock at December 31, 2025, assuming that the preferred stock has a liquidating value of $105 per share. (Round answers to 2 decimal places, e.g. 38.50.)
Book value per share?
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