Chapter 13, Problem 13.1FSC

To determine

Stockholder’s Equity:

Stockholders Equity includes the paid up amount of all stocks (Common as well as preferred) issued and retained earnings balance. It represents the amount owed to the stockholders by the company. Stockholders Equity is the section of balance sheet’s equity part.

Statement of Cash flows:

The Statement of cash flows is the part of financial statements of a company; it shows inflow and outflows of cash in the business. It classifies cash flows into three types; Cash flows from operating activities, Cash flows from investing activities, and Cash flows from financing activities.

Basic Earnings per share:

The Basic Earnings per share is the amount of net income earned by each common share outstanding. The Earnings per share calculated by with help of following formula:

$\text{Basic Earnings per share=}\frac{\text{Net Income - Preferred Dividend}}{\text{Weighted Average Common Shares Outstanding}}$

1. Preferred Stock:

To determine:

If target corporation has preferred stock at January 30, 2016

To determine

2. Authorization to issue preferred Stock:

To determine:

If target corporation is authorized to issue preferred stock

To determine

3. Outstanding Common Stock:

To determine:

The amount of Outstanding Common Stock as at January 30, 2016

To determine

4. Cash dividend:

To determine:

If the company paid any Cash Dividend during the year ending January 30, 2016

To determine

5. Earnings Per Share:

To indicate:

The Calculations of earnings per share