Definition Definition Type of stock which is granted priority over dividend distributions as compared to common stockholders. Preferred stocks also do not carry any voting rights. Notably, in a case where a company is going to be liquidated, preferred stockholders have a priority claim on the value of assets of the company as quoted in the balance sheet, as compared to the common stockholders.
Chapter 15, Problem 11C
1.
To determine
Identify the number of preferred shares were authorized and issues at the end of 2012.
2.
To determine
Identify the number of preferred shares were authorized and issues at the end of 2012 and identify the par value per share.
3.
To determine
Identify the term the company used for its additional paid in capital and state the amount at the end of 2012.
4.
To determine
Identify the number of treasury stock held by the company at the end of 2012 and state the average cost per share.
5.
To determine
Identify the number of shares that company reacquire in 2012 and state the average cost per share.
6.
To determine
Describe the Company’s 2008 equity plan. Identify the weighted average fair value of the share options the company granted in 2012. State the stock based compensation of company for 2012 and where it was reported. Identify the number of share options were granted and exercised in 2012, and identify the number of outstanding options at the end of 2012. State the weighted average price per share were the options exercised in 2012.
Selected information taken from the financial statements of Verbeke Co.
for the year ended December 31, 2019, follows:
Gross profit
General and administrative expenses
$ 4,13,000
83,000
Net cash used by investing activities
1,05,000
Dividends paid
55,000
Interest expense
60,000
Net sales
7,40,000
Advertising expense
75,000
Accounts payable
1,03,000
Income tax expense
84,000
Other selling expenses
43,000
a. Calculate income from operations (operating income) for the year
ended December 31, 2019.
b. Calculate net income for the year ended December 31, 2019.
In response to complaints about high prices, a grocery
chain runs the following advertising campaign: "If you
pay your child $3 to go buy $100 worth of groceries,
then your child makes twice as much on the trip as we
do." You've collected the following information from
the grocery chain's financial statements:
(millions)
Sales
$700
Net income $10.5
Total assets $380
Total debt
$250
1. What is the profit margin for children as a
percentage of what they spend and the profit margin
for the store?
2. What is the store's ROE?
Chapter 15 Solutions
Intermediate Accounting: Reporting and Analysis (Looseleaf)