The following information pertains to Parsons Co. Preferred stock, cumulative: Par value per share Dividend rate Shares outstanding Dividends in arrears Common stock: Par value per share Shares issued Dividends paid per share Market price per share Additional paid-in capital Unappropriated retained earnings (after closing) Retained earnings appropriated for contingencies Common treasury stock Number of shares Total cost Net income $100 6% 10,000 none $10 120,000 $1.80 $48.00 $400,000 $270,000 $300,000 10,000 $250,000 $500,000 Instructions Compute (assume no changes in balances during the past yoar): (a) Total amount of stockholders' equity in the balance sheet (b) Earnings per share of common stock Book value per share of common stock (c)
The following information pertains to Parsons Co. Preferred stock, cumulative: Par value per share Dividend rate Shares outstanding Dividends in arrears Common stock: Par value per share Shares issued Dividends paid per share Market price per share Additional paid-in capital Unappropriated retained earnings (after closing) Retained earnings appropriated for contingencies Common treasury stock Number of shares Total cost Net income $100 6% 10,000 none $10 120,000 $1.80 $48.00 $400,000 $270,000 $300,000 10,000 $250,000 $500,000 Instructions Compute (assume no changes in balances during the past yoar): (a) Total amount of stockholders' equity in the balance sheet (b) Earnings per share of common stock Book value per share of common stock (c)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question

Transcribed Image Text:The following information pertains to Parsons Co.
Preferred stock, cumulative:
Par value per share
Dividend rate
Shares outstanding
Dividends in arrears
Common stock:
Par value per share
Shares issued
Dividends paid per share
Market price per share
Additional paid-in capital
Unappropriated retained earnings (after closing)
Retained earnings appropriated for contingencies
Common treasury stock:
Number of shares
Total cost
Net income
$100
6%
10,000
none
$10
120,000
$1.80
$48.00
$400,000
$270,000
$300,000
10,000
$250,000
$500,000
Instructions
Compute (assume no changes in balances during the past year):
Total amount of stockholders' equity in the balance sheet
(a)
(b) Earnings per share of common stock
(c)
Book value per share of common stock
(d)
Payout ratio of common stock
(e)
Return on common stock equity
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