Los Altos, Inc., disclosed the following information in a recent annual report: Year 1 Year 2 Net income $35,000 $55,000 Preferred stock dividends 3,000 3,000 Average common stockholders' equity 1,200,000 1,500,000 Dividend per common share 1.20 1.20 Earnings per share 1.90 2.05 Market price per common share, year-end 19.50 21.00 Calculate the common stock dividend yield for Los Altos, Inc. for both years. Round to one decimal. Year 1 Year 2 Common stock dividend yield Did the dividend yield improve from Year 1 to Year 2?
Q: A company has the following data at the end of the current year: 200,000 207,000 $15,000 Number of…
A: Earnings per share indicate the profits per share of common stockholders. It can be calculated by…
Q: The following information is taken from the balance sheetand related disclosures of Maxwell,…
A: a) If the preference dividends are cumulative in nature, then these are the liability and if non…
Q: The Harbinger Corporation reported net income of $6 million and total assets of $7 million in its…
A: Earnings per share (EPS): The amount of net income available to each shareholder per common share…
Q: Financial statement data for this year and last year for Hanscombe Corp. are as follows: Current…
A: Earnings per share =(Net Income-Preferred Dividend)/Number of shares outstanding…
Q: At the beginning of the current year, Soron Corporation had 200,000 shares of $1 par common stock…
A: Retained earnings are the amount which was retained by the company after all of its expenses…
Q: The following information pertains to Marsh Company for the current! year: Average total assets,…
A: Ratio analysis is a method of measuring the financial position of the organization with different…
Q: Angola Corporation reported a net income of $154,000, declared dividends on common stock of $60,000,…
A: Given the following information: Net income: $154,000 Declared dividends on common stock $60,000…
Q: Los Altos, Inc., disclosed the following information in a recent annual report: Year 1 Year 2 Net…
A: Common Stock dividend Yield = Common Dividend/ Market Price of Common Share
Q: Prag Co. reported the following financial data for its most current year: Beginning-of-year common…
A: Formula: Ending of the year total stockholders equity = Beginning of the year common stock +…
Q: The following information was taken from the financial statements of Tolbert Inc. for December 31 of…
A: Given the following information: Common stock, $10 par value (no change during the year):…
Q: Los Altos, Inc., disclosed the following information in a recent annual report: Year 1 Year 2 Net…
A: Formula;Dividend yield=Dividend per common shareMarket price per common share
Q: The following information was taken from the financial statements of Tolbert Inc. for December 31 of…
A: Given the following information: Common stock, $10 par value (no change during the year):…
Q: Basic Solutions Company reported net earnings of $60,000, declared and paid cash dividends on its…
A: Retained earning balance can be calculated by adding up net income and deducting cash dividends from…
Q: Net income for the period totaled OMR75,000, preferred dividends paid totaled OMR10,000, and common…
A: It is pertinent to note that preferred dividends are paid in prior to dividends to be paid to common…
Q: A company reports the following: Net income $275,000 Preferred dividends 11,000 Average…
A: a) Return on stockholders equity = Net income / Average stockholders equity = 275,000/2,200,000 =…
Q: The balance sheet for Garcon Inc. at the end of the current fiscal year indicated the following:…
A: The times interest earned ratio is a ratio to measure a company's ability to pay its debt interests…
Q: At September 30, the end of Beijing Company's third quarter, the following stockholders' equity…
A: Beiging Company September 30 Beginning Balance Oct-02 Oct-25 Oct-31 Nov-05 Dec-01 Dec-31…
Q: The price-earnings ratio is closest to:
A: Formula: PE Ratio= Market Value Per ShareEarning Paer Share Earining Per Share= Net Income-…
Q: Los Altos, Inc., disclosed the following information in a recent annual report: Year 1 Year 2…
A: Year 1 Year 2 Net Income $35000 $55000 Less: Preferred stock dividends 3000 3000 Earnings…
Q: At the end of the accounting period, Houston Company had $6,600 of common stock, paid-in capital in…
A: Stockholders Equity can be calculated by subtracting the total liabilities of a business from total…
Q: A company reports the following: Net income $508,490 Preferred dividends $37,670 Shares of common…
A: Earnings per share (EPS) shows the how much firm earned on per share. It can be computed by dividing…
Q: The records of Hollywood Company reflected the following balances in the stockholders' equity…
A: Dividend on Preferred stock = 9,000 shares x $10 x 10% = $9,000
Q: Los Altos, Inc., disclosed the following information in a recent annual report: Year 1 Year 2 Net…
A: Dividend is the return or profit for the common stockholders. It is the cost for the firm. Stock…
Q: Prag Co. reported the following financial data for its most current year: Beginning-of-year common…
A: Shareholders' equity depicts the amount of capital invested by the owner in the business. It…
Q: Los Altos, Inc., disclosed the following information in a recent annual report: Year 1 Year 2 Net…
A: Formula; Dividend payout)=Dividend per common shareEarnings per share
Q: Jay Co. reported the following financial data for its most current year: Beginning-of-year…
A: The total stockholders’ equity represents the owner’s capital or claim in the company. The total…
Q: Markus Company’s common stock sold for $5.25 per share at the end of this year. The company paid a…
A: Working capital = Current assets - Current liabilities Current ratio = Current assets / Current…
Q: The balance sheet for Quigg Inc. at the end of the current fiscal year indicated the following:…
A: Since you have posted a question with multiple sub-parts, we will solve first three subparts for…
Q: A company reports the following: Net income $593,210 Preferred dividends $43,940 Shares of…
A: Net income $593,210 Preferred dividends $43,940 Shares of common stock outstanding…
Q: The balance sheet for Tyde Corporation at the end of the current year indicates the following:…
A: EPS: Earnings per share is the monetary value of earnings per outstanding share of common stock…
Q: The following information was taken from the financial statements of Tolbert Inc. for December 31 of…
A: Given the following information: Common stock, $10 par value (no change during the year):…
Q: Dividend Yield Los Altos, Inc., disclosed the following information in a recent annual report:…
A: Common stock dividend yield = Dividend / Price Year 1 = $1.58 / $26.30 = 0.06007 or 6.0% Year 2 =…
Q: A company reports the following: Net income $911,700 Preferred dividends $67,530 Shares of…
A: Ratio analysis is a method of measuring the financial position of the organization with different…
Q: A company reports the following:Net income $…
A: (a)
Q: A company reports the following: Net income $171,720 Preferred dividends $12,720 Shares of common…
A: The ratio analysis helps to analyse the financial statements of the business.
Q: Los Altos, Inc., disclosed the following information in a recent annual report: Year 1 Year 2 Net…
A: Dividend payout ratio is calculated as Dividend per share Divided by earning per share.
Q: Gordon Corporation reported the following equity section on its current balance sheet. The common…
A: A Stock Dividend is the payment of dividends in the forms of shares of the company. There are 2…
Q: Markus Company’s common stock sold for $4.50 per share at the end of this year. The company paid a…
A: The operating cycle can be defined as the time taken by the company to buy inventories, sell the…
Q: Dividend Yield Los Altos, Inc., disclosed the following information in a recent annual report: Year…
A: The dividend yield is calculated as ratio of dividend per share and the market price per share
Q: Markus Company’s common stock sold for $4.75 per share at the end of this year. The company paid a…
A: Return on total assets is a percentage of net income with respect to its investment. It is a…
Q: Five Measures of Solvency or Profitability The balance sheet for Garcon Inc. at the end of the…
A: a. Calculate Times interest earned ratio.
Q: The following information is available for Metlock Hill Corporation: Beginning common stockholders'…
A: Common Stockholder- A common shareholder is an person, company, or organization that holds ordinary…
Q: Los Altos, Inc., disclosed the following information in a recent annual report: Year 1 Year 2…
A: The return on common stockholders' equity is the percentage measure of earnings available to common…
Q: On December 31, Sulfur Corporation has the following data available: Net Income $100,000 $5 Market…
A: Earnings per share = (net income - preferred dividend)/Weighted average no. of common shares…
Q: At September 30, the end of Beijing Company's third quarter, the following stockholders' equity…
A: Introduction: The shareholders' equity account represents the equity and retained earnings that…
Q: The following information was taken from the financial statements of Zeil Inc. for December 31 of…
A:
Q: Bonita Corporation reports net income of $306,250 and a weighted-average of 175,000 shares of common…
A: EPS (Earning Per Share) for common stock is computed by the formula: Net Income / Weighted Average…
Q: The following information was taken from the financial statements of Tolbert Inc. for December 31 of…
A: Given the following information: Common stock, $10 par value (no change during the year):…
Step by step
Solved in 2 steps
- Given the following year-end information, compute Greenwood Corporations basic and diluted earnings per share. Net income, 15,000 The income tax rate, 30% 4,000 shares of common stock were outstanding the entire year. shares of 10%, 50 par (and issuance price) convertible preferred stock were outstanding the entire year. Dividends of 2,500 were declared on this stock during the year. Each share of preferred stock is convertible into 5 shares of common stock.Given the following year-end information for Somerset Corporation, compute its basic earnings per share. Net income, 13,000 Preferred dividends declared, 4,000 Weighted average common shares for the year, 4,500Rebert Inc. showed the following balances for last year: Reberts net income for last year was 3,182,000. Refer to the information for Rebert Inc. above. Also, assume that the market price per share for Rebert is 51.50. Required: 1. Compute the dollar amount of preferred dividends. 2. Compute the number of common shares. 3. Compute earnings per share. (Note: Round to two decimals.) 4. Compute the price-earnings ratio. (Note: Round to the nearest whole number.)
- Rebert Inc. showed the following balances for last year: Reberts net income for last year was 3,182,000. Refer to the information for Rebert Inc. above. Also, assume that the dividends paid to common stockholders for last year were 2,600,000 and that the market price per share of common stock is 51.50. Required: 1. Compute the dividends per share. 2. Compute the dividend yield. (Note: Round to two decimal places.) 3. Compute the dividend payout ratio. (Note: Round to two decimal places.)Errol Corporation earned net income of $200,000 this year. The company began the year with 10,000 shares of common stock and issued 5,000 more on April 1. They issued $7,500 in preferred dividends for the year. What is the numerator of the EPS calculation for Errol?Selected transactions completed by Equinox Products Inc. during the fiscal year ended December 31, 2016, were as follows: a. Issued 15,000 shares of 20 par common stock at 30, receiving cash. b. Issued 4, 000 shares of 80 par preferred 5% stock at 100, receiving cash. c. Issued 500,000 of 10-year, 5% bonds at 104, with interest payable semiannually. d. Declared a quarterly dividend of 0.50 per share on common stock and 1.00 per share on preferred stock. On the date of record, 100,000 shares of common stock were outstanding, no treasury shares were held, and 20,000 shares of preferred stock were outstanding. e. Paid the cash dividends declared in (d). f. Purchased 7,500 shares of Solstice Corp. at 40 per share, plus a 150 brokerage commission. The investment is classified as an available-for-sale investment. g. Purchased 8,000 shares of treasury common stock at 33 per share. h. Purchased 40,000 shares of Pinkberry Co. stock directly from the founders for 24 per share. Pinkberry has 125,000 shares issued and outstanding. Equinox Products Inc. treated the investment as an equity method investment. i. Declared a 1.00 quarterly cash dividend per share on preferred stock. On the date of record, 20,000 shares of preferred stock had been issued. j. Paid the cash dividends to the preferred stockholders. k. Received 27,500 dividend from Pinkberry Co. investment in (h). l. Purchased 90,000 of Dream Inc. 10-year, 5% bonds, directly from the issuing company, at their face amount plus accrued interest of 37 5. The bonds are classified as a held-to-maturity long -term investment. m. Sold, at 38 per share, 2,600 shares of treasury common stock purchased in (g). n. Received a dividend of 0 .60 per share from the Solstice Corp. investment in (f). o. Sold 1,000 shares of Solstice Corp. at 45, including commission. p. Recorded the payment of semiannual interest on the bonds issue d in (c) and the amortization of the premium for six months. The amortization is determined using the straight-line method . q. Accrued interest for three months on the Dream Inc. bonds purchased in (I). r. Pinkberry Co. recorded total earnings of 240 ,000. Equinox Products recorded equity earnings for its share of Pinkberry Co. net income. s. The fair value for Solstice Corp. stock was 39. 02 per share on December 31, 2016. The investment is adjusted to fair value , using a valuation allowance account. Assume Valuation Allowance for Available-for-Sale Investments h ad a beginning balance of zero. Instructions 1. Journalize the selected transactions. 2. After all of the transaction s for the year ended December 31, 201 6, had been poste d [including the transactions recorded in part (1) and all adjusting entries), the data that follows were taken from the records of Equinox Products Inc. a. Prepare a multiple-step in come statement for the year ended December 31, 201 6, concluding with earnings per share . In computing earnings per share, assume that the average number of common shares outstanding was 100,000 and preferred dividends were 100,000. ( Round earnings per share to the nearest cent.) b. Prepare a retained earnings statement for the year ended December 31, 20 6. c. Prepare a balance sheet in report form as of December 31, 2016.
- Lyon Company shows the following condensed income statement information for the year ended December 31, 2019: Lyon declared dividends of 6,000 on preferred stock and 17,280 on common stock. At the beginning of 2019, 10,000 shares of common stock were outstanding. On May 1, 2019, the company issued 2,000 additional common shares, and on October 31, 2019, it issued a 20% stock dividend on its common stock. The preferred stock is not convertible. Required: 1. Compute the 2019 basic earnings per share. 2. Show the 2019 income statement disclosure of basic earnings per share. 3. Draft a related note to accompany the 2019 financial statements.Chen Corporation began 2012 with the following stockholders equity balances: The following selected transactions and events occurred during the year: a. Issued 10,000 shares of common stock for 60,000. b. Purchased 1,200 shares of treasury stock for 4,800. c. Sold 2,000 shares of treasury stock for 11,000. d. Generated net income of 94,000. e. Declared and paid the full years dividend on preferred stock and a dividend of 1.00 per share on common stock outstanding at the end of the year. Chen Corporation maintains several paid-in capital accounts (Paid-in Capital in Excess of Par, Paid-in Capital from Treasury Stock, etc.) in its ledger, but combines them all as Additional paid-in capital when preparing financial statements.Chen Corporation began 2012 with the following stockholders equity balances: The following selected transactions and events occurred during the year: a. Issued 10,000 shares of common stock for 60,000. b. Purchased 1,200 shares of treasury stock for 4,800. c. Sold 2,000 shares of treasury stock for 11,000. d. Generated net income of 94,000. e. Declared and paid the full years dividend on preferred stock and a dividend of 1.00 per share on common stock outstanding at the end of the year. Chen Corporation maintains several paid-in capital accounts (Paid-in Capital in Excess of Par, Paid-in Capital from Treasury Stock, etc.) in its ledger, but combines them all as Additional paid-in capital when preparing financial statements. Open the file STOCKEQ from the website for this book at cengagebrain.com. Enter the formulas in the appropriate cells on the worksheet. Then fill in the columns to show the effect of each of the selected transactions and events listed earlier. Enter your name in cell A1. Save the completed worksheet as STOCKEQ2. Print the worksheet. Also print your formulas. Check figure: Total stockholders equity balance at 12/31/12 (cell G21). 398,800.
- Chen Corporation began 2012 with the following stockholders equity balances: The following selected transactions and events occurred during the year: a. Issued 10,000 shares of common stock for 60,000. b. Purchased 1,200 shares of treasury stock for 4,800. c. Sold 2,000 shares of treasury stock for 11,000. d. Generated net income of 94,000. e. Declared and paid the full years dividend on preferred stock and a dividend of 1.00 per share on common stock outstanding at the end of the year. Chen Corporation maintains several paid-in capital accounts (Paid-in Capital in Excess of Par, Paid-in Capital from Treasury Stock, etc.) in its ledger, but combines them all as Additional paid-in capital when preparing financial statements. In the space provided below, prepare the stockholders equity section of Chen Corporations balance sheet as of December 31, 2012. Use proper headings and provide full disclosure of all appropriate information. Chens corporate charter authorizes the issuance of 1,000 shares of preferred stock and 100,000 shares of common stock.Bastion Corporation earned net income of $200,000 this year. The company began the year with 10,000 shares of common stock and issued 5,000 more on April 1. They issued $7,500 in preferred dividends for the year. What is the EPS for the year for Bastion?Selected transactions completed by Equinox Products Inc. during the fiscal year ended December 31, 2016, were as follows: a. Issued 15,000 shares of 0 par common stock at 0, receiving cash. b. Issued 4,000 shares of 80 par preferred 5% stock at 100, receiving cash. c. Issued 500,000 of 10-year, 5% bonds at 104, with interest payable semiannually. d. Declared a quarterly dividend of 0.50 per share on common stock and 1.00 per share on preferred stock. On the date of record, 100,000 shares of common stock were outstanding, no treasury shares were held, and 20,000 shares of preferred stock were outstanding. e. Paid the cash dividends declared in (d). f. Purchased 7,500 shares of Solstice Corp. at 40 per share, plus a 150 brokerage commission. The investment is classified as an available-for-sale investment. g. Purchased 8,000 shares of treasury common stock at 33 per share. h. Purchased 40,000 shares of Pinkberry Co. stock directly from the founders for 24 per share. Pinkberry has 125,000 shares issued and outstanding. Equinox Products Inc. treated the investment as an equity method investment. i. Declared a 1.00 quarterly cash dividend per share on preferred stock. On the date of record, 20,000 shares of preferred stock had been issued. j. Paid the cash dividends to the preferred stockholders. k. Received 27,500 dividend from Pinkberry Co. investment in (h). l. Purchased 90,000 of Dream Inc. 10-year, 5% bonds, directly from the issuing company, at their face amount plus accrued interest of 375. The bonds are classified as a held- to-maturitv long-term investment. m. Sold, at 38 per share, 2,600 shares of treasury common stock purchased in (g). n. Received a dividend of 0.60 per share from the Solstice Corp. investment in (f). o. Sold 1,000 shares of Solstice Corp. at 545, including commission. p. Recorded the payment of semiannual interest on the bonds issued in (c) and the amortization of the premium for six months. The amortization is determined using the straight-line method, q. Accrued interest for three months on the Dream Inc. bonds purchased in (1). r. Pinkberry Co. recorded total earnings of 240,000. Equinox Products recorded equity earnings for its share of Pinkberry Co. net income. s. The fair value for Solstice Corp. stock was 39.02 per share on December 31, 2016. The investment is adjusted to fair value, using a valuation allowance account. Assume Valuation Allowance for Available-for-Sale Investments had a beginning balance of zero. Instructions Journalize the selected transactions. After all of the transactions for the year ended December 31, 2016, had been posted [including the transactions recorded in part (1) and all adjusting entries], the data that follows were taken from the records of Equinox Products Inc. a. Prepare a multiple-step income statement for the year ended December 31, 2016, concluding with earnings per share. In computing earnings per share, assume that the average number of common shares outstanding was 100,000 and preferred dividends were 100,000. (Round earnings per share to the nearest cent.) b. Prepare a retained earnings statement for the year ended December 31, 2016. c. Prepare a balance sheet in report form as of December 31, 2016. Income statement data: Advertising expense 150,000 Cost of merchandise sold 3,700,000 Delivery expense 30,000 Depreciation expense -office buildings and equipment 30,000 Depreciation expensestore buildings and equipment 100,000 Dividend revenue 4,500 Gain on sale of investment 4,980 Income from Pinkberry Co. investment 76,800 Income tax expense 140,500 Interest expense 21,000 Interest revenue 2,720 Miscellaneous administrative expense 7.500 Miscellaneous selling expense 14,000 Office rent expense 50,000 Office salaries expense 170,000 Office supplies expense 10,000 Sales 5,254,000 Sales commissions 185,000 Sales salaries expense 385,000 Store supplies expense 21,000 Retained earnings and balance sheet data: Accounts payable 194,300 Accounts receivable 545,000 Accumulated depreciationoffice buildings and equipment 1,580,000 Accumulated depreciationstore buildings and equipment 4,126,000 Allowance for doubtful accounts 8,450 Available for sale investments (at cost) 260,130 Bonds payable. 5%. due 2024 500,000 Cash 246,000 Common stock, 20 par (400,000 shares authorized; 100,000 shares issued. 94,600 outstanding) 2,000,000 Dividends: Cash dividends for common stock 155,120 Cash dividends for preferred stock 100,000 Goodwill 500,000 Income tax payable 44,000 Interest receivable 1,125 Investment in Pinkberry Co. stock (equity method) 1,009,300 Investment in Dream Inc. bonds (long term) 90,000 Merchandise inventory [December 31, 2016). at lower of cost (FIFO) or market 778,000 Office buildings and equipment 4.320,000 Paid-in capital from sale of treasury stock 13,000 Excess of issue price over parcommon stock 886,800 Excess of issue price over parpreferred stock 150,000 Preferred 5% stock. 80 par (30,000 shares authorized; 20,000 shares issued] 1,600,000 Premium on bonds payable 19,000 Prepaid expenses 27,400 Retained earnings, January 1, 2016 9,319,725 Store buildings and equipment 12,560,000 Treasury stock (5,400 shares of common stock at cost of 33 per share) 178,200 Unrealized gain (loss) on available for sale investments (6,500) Valuation allowance for available for sale investments (6,500)
