Corporate Financial Accounting - W/CENGAGENOW
Corporate Financial Accounting - W/CENGAGENOW
13th Edition
ISBN: 9781285148717
Author: WARREN
Publisher: CENGAGE C
Question
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Chapter 12, Problem 12.3MAD

(a)

To determine

The earnings per share of Company P for Year 1-3.

(b)

To determine

To interpret: The trend in earnings per share using horizontal analysis for 3 years in terms of change in earnings and average shares outstanding.

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owe Tool and Die (RTD) produces metal fittings as a supplier to various manufacturing firms in the area. The following is the forecasted income statement for the next quarter, which is the typical planning horizon used at RTD. RTD expects to sell 64,000 units during the quarter. RTD carries no inventories.     Amount Per Unit Sales revenue $ 2,028,800 $ 31.70 Costs of fitting produced 1,523,200 23.80 Gross profit $ 505,600 $ 7.90 Administrative costs 355,200 5.55 Operating profit $ 150,400 $ 2.35
The audited accounts of Lindsay Co. for year-end August 31, 2014 show a profit of $3,115,000 after charging the following: Depreciation 430,000 Rent 175,000 Legal fees 1,350,000 Audit fees 88,000 Donations 119,000 Bad debts 242,000 Foreign Travel 395,750 Interest payments 62,375 Other Information: a. Legal fees are as follows: Expenses in respect of recovery of debts, $585,000 Expenses related to the increase private share capital, $765,000 b. Lindsay Co. donated $65,500 to UTECH University and $53,500 to HELP, a private charity registered under the Charities Act. c. Bad debts are as follows: • A loan of $76,130 to Derek Stan who failed to repayit. • $63,017, owed by Simplicity Ltd. which was declared bankrupt. • The balance is a percentage of receivables at year end which is deemed to be bad. d. Foreign travel expense included $268,210 for a vacation package for the marketing manager’s and his family plane…

Chapter 12 Solutions

Corporate Financial Accounting - W/CENGAGENOW

Ch. 12 - Dividends per share Zero Calories Company has...Ch. 12 - Entries for issuing stock On January 22, Zentric...Ch. 12 - Prob. 12.3BECh. 12 - Prob. 12.4BECh. 12 - Entries for treasury stock On May 27, Hydro...Ch. 12 - Reporting stockholders equity Using the following...Ch. 12 - Statement of stockholders equity None Cruises Inc....Ch. 12 - Earnings per share Financial statement data for...Ch. 12 - Preferred stock, 1st year 0.85 Dividends per share...Ch. 12 - Prob. 12.2EXCh. 12 - Prob. 12.3EXCh. 12 - Prob. 12.4EXCh. 12 - Issuing stock for assets other than cash On...Ch. 12 - Selected stock transactions Alpha Sounds Corp., an...Ch. 12 - Issuing stock Willow Creek Nursery, with an...Ch. 12 - Issuing stock Professional Products Inc., a...Ch. 12 - Entries for cash dividends The declaration,...Ch. 12 - Entries for stock dividends Healthy Life Co. is an...Ch. 12 - Prob. 12.11EXCh. 12 - Effect of cash dividend and stock split Indicate...Ch. 12 - Selected dividend transactions, stock split...Ch. 12 - Prob. 12.14EXCh. 12 - Treasury stock transactions SprayCo Inc. develops...Ch. 12 - Prob. 12.16EXCh. 12 - Reporting paid-in capital The following accounts...Ch. 12 - Stockholders Equity section of balance sheet The...Ch. 12 - Stockholders Equity section of balance sheet...Ch. 12 - Retained earnings statement Sumter Pumps...Ch. 12 - Stockholders Equity section of balance sheet List...Ch. 12 - Prob. 12.22EXCh. 12 - Prob. 12.1APRCh. 12 - Prob. 12.2APRCh. 12 - Selected stock transactions The following selected...Ch. 12 - Prob. 12.4APRCh. 12 - Entries for selected corporate transactions...Ch. 12 - Common dividends in 20Y3: 25,000 Dividends on...Ch. 12 - Stock transaction for corporate expansion Pulsar...Ch. 12 - Selected stock transactions Diamondback Welding ...Ch. 12 - Prob. 12.4BPRCh. 12 - Entries for selected corporate transactions West...Ch. 12 - Comprehensive Problem 4 2. c. Total assets....Ch. 12 - Prob. 12.1MADCh. 12 - Analyze and compare Bank of America and Wells...Ch. 12 - Prob. 12.3MADCh. 12 - Prob. 12.4MADCh. 12 - Analyze and compare BBT and Regions Financial BBT...Ch. 12 - Ethics In Action Tommy Gunn is a division manager...Ch. 12 - Ethics in Action Lou Hoskins and Shirley Crothers...Ch. 12 - Prob. 12.4TIF
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