Mr. Husker’s Tuxedos Corp. began the year 2021 with $280 million in retained earnings. The firm earned net income of $45 million in 2021 and paid dividends of $6 million to its preferred stockholders and $15 million to its common stockholders. What is the year-end 2021 balance in retained earnings for Mr. Husker’s Tuxedos? (Enter your answer in millions of dollars.)
Q: Explain: the deposit insurance, provided by the government, reduces the incentive for depositors to…
A: Deposit insurance is a program that provides protection to depositors in the event of a bank…
Q: Rate of Return = [?] % Give your answer as a percent rounded to the nearest tenth.
A: The rate of return is the % profit you earned after buying and selling stock A. To calculate the…
Q: 10. Ryan's stock is currently selling for $50.00. It is expected to pay a year-end dividend of…
A: The Dividend Growth Model refers to a model that helps in calculating the intrinsic value of a stock…
Q: Please provide solutions and answers for the three questions. 1. Keiko buys a T-bill with a face…
A: To calculate the price of the T-bill that Keiko buys, we can use the formula: P = F / (1 + rt)…
Q: Blue Star Corporation has Net Income of 16,000, Sales of 200,000, Assets of 350,000, and Total…
A: The question is related to Ratio Analysis. The Return on Sales is calculated with the help of…
Q: the article “machine learning in finance: the case of deep learning for option pricing “ what can be…
A: Machine learning in finance is regarded as a crucial component of a number of financial services and…
Q: a friend comes to you for advice. He is faced with two investment choices.)(Choice 1: Place a RM…
A: ) The payoff profile of the index fund investment would be a straight line starting at a point of…
Q: Thomson Trucking has $24 billion in assets, and its tax rate is 25%. Its basic earning power (BEP)…
A: TIE ratio is the ratio of Earning before Interest and Tax divided by the Interest Expense. TIE Ratio…
Q: 4. Linda and Jeff each open new bank accounts at time 0. Linda deposits 6,000 into her bank account,…
A: Data given: Linda deposit=6000 Jeff deposit=4800 Interest earned in Linda's account during 6th…
Q: Standard Corporation is considering the purchase of a new truck that will cost the company $48,780.…
A: It's a typical capital budgeting decision that requires decision making based on NPV. As a first…
Q: PROBLEM 10 A developer deposits $84,720 for 7 months and earns $4055.46 in simple interest.Find the…
A: STEP 1 Interest Rate The amount of interest due each period expressed as a percentage of the amount…
Q: What are the consequences of poor internal equity? 2- What are the consequences of poor external…
A: A share market, also known as a stock market, is a place where shares of publicly traded companies…
Q: Find the unit rate. Del Monte Sweet Peas $1.42 for 14 oz. What is the cost for one ounce?
A: The unit rate refers to the rate at which one commodity can be purchased. The unit rate often is a…
Q: Bid/Ask on Dollar/Euro Forwards. Use the following spot and forward bid-ask rates for the U.S.…
A: Bid rate-It is the price at which the dealer is willing to buy another currency. Ask rate- It is the…
Q: hat should be the stock price today if the discount rate is 4%?
A: The price of a stock is the PV of future dividends. We need to determine the horizon value of the…
Q: You are school supply shopping and see that notebooks are $4.15 for 5 notebooks. How much is it for…
A: Total cost of supply is known. We have to find the per unit cost.
Q: Which of the following methods needs to define the scope A. parametric estimate B. Ballpark estimate…
A: Scope refers to the defined limits or boundaries of a project, product, or service. It encompasses…
Q: Could you please show the breakdown of NPV calculation for each fraction
A: Net Present Value: It represents a profitability measure for an investment or a project. The…
Q: the federal fund is more effective than The banker’s acceptance in improving the economic growth.…
A: The federal funds rate is the interest rate at which banks lend money to each other overnight. It is…
Q: 13-Your company is considering two possible projects but can only raise enough funds to proceed with…
A: Let us discuss the investment appraisal technique used in this question. 1. Payback period : This is…
Q: Jennifer Lee, an engineering major in her junior year, has received in the mail two…
A: Data given: Description Data Balance after payment 500 No. of months 24 Daily rate 8%…
Q: a) Consider two firms L (Levered) & U (Unlevered) which are identical in all respect except for…
A: Please note under Bartleby's Answering Guidelines only the first question can be solved. An…
Q: Which of the following is true about WBS A. it is needed only on large projects B. it is required…
A: WBS stands for Work Breakdown Structure, it is a project management tool used to break down a…
Q: ssume that the Canada Pension s you per year ting when you retire 45 yea st $20,000 will come 45…
A: Present value of the future payments is value for the annuity and that is based on the timing and…
Q: A company will need $65,000 in 6 years for a new addition. To meet this goal, the company deposits…
A: Solution: When an amount is invested somewhere, it earns interest on it. The amount initially…
Q: PROBLEM 12 How many days will it take for a sum of $1000 to earn $20 interest if it is deposited in…
A: When an individual deposits a certain amount of money in a bank, the bank pays simple interest on…
Q: Gerritt wants to buy a car that costs $27,000. The interest rate on his loan is 5.35 percent…
A: STEP 1 Loan terms are the terms that come with borrowing money. This can include the length of the…
Q: The All-Mine Corporation is deciding whether to invest in a new project. The project would have to…
A: WACC stands for a weighted average cost of capital and refers to the method which is used for…
Q: Debt service funds are used to account for which of the following? Multiple Choice Payment of…
A: Debt service funds are the records of resources of funds for payment of interests and principal…
Q: 3. What is the correct order from short maturity to long maturity? a) Treasury bill - Treasury note…
A: Treasury instruments are issued at a deep discount and can range from a maturity of few days to few…
Q: You've just joined the investment banking firm of Dewey, Cheatum, and Howe. They've offered you two…
A: Present Value is the estimation of future cash flows at a predetermined rate of return over a…
Q: The interest rate on a GIC is 3.45% compounded semi-annually. What is the purchase price of the GIC…
A: Present value The amount of cash that must be invested in order to realize a given future objective…
Q: Today is the 10th January 2023. You want to buy a Floating Rate Note (FRN) that matures on the 10th…
A: We have a note with floating rate of interest. We need to find its price.
Q: An Investor uses £7,500 of her money + £2,500 from a loan at 8% to invest in the shares of MLN. A…
A: Investments are goods or assets that are bought to produce income or appreciate in value. The…
Q: Assume that the Canada Pension Plan promises you $20,000 per year starting when you retire 45 years…
A: Present Value: It represents the current value of the future expected cash flows discounted over a…
Q: How would you hedge this position on 1st January using Eurodollar futures contracts? Explain the…
A: To hedge the position on 1st January, you would enter into a short position in Eurodollar futures…
Q: The financial information below is for Mat Moery, who works as an administrative assistant in a law…
A: Networth is calculated as Assets - Liabilities. Revenue and expenses do not form part of the…
Q: Convert 5.81% compounded semi-annually to an equivalent interest rate compounded monthly. Round EFF…
A: STEP 1 When all factors affecting revenues are taken into account, the effective rate of return is…
Q: Blossom Company is considering two different, mutually exclusive capital expenditure proposals.…
A: Calculation of NPV:- Present value of cash inflows- Present value of cash outflows. Calculation of…
Q: You are the CFO of a company and the CEO wants you to tell him which evolution we will see in…
A: As the CFO, I am reporting that the outlook for interest rates in the near future is uncertain.…
Q: Assume that you manage a risky portfolio with an expected rate of return of 15% and a standard…
A: Standard Deviation of Portfolio = W1σ1 + W2σ2 + 2W1 W2 12 Cov12 where, W1 = Weight of Risky…
Q: You are considering investing in Property B in question 4. Consider now that the listing price of…
A: Data given: Listing price of the property= $11 million Risk premium=5.5% Maturity (year) 1 2 3 4…
Q: Earnings per share is a factor used by the stock market to determine stock prices. Select one: True…
A: There are many methods to determine the stock price of a share. Earnings per shares gives the dollar…
Q: Industries' financial statements show the following balances: Accounts Payable = 150; Accounts…
A: The Net Working capital is the excess of Current Assets over Current Liabilities. It is calculated…
Q: 2. Which statement is not correct? a) Municipal bonds tend to have a lower yield than Treasuries b)…
A: Municipal bonds are securities issued by state, county or local government to raise money for…
Q: 9. Historically, which type of debt instrument pays investors the highest gross interest rate? a) A…
A: A debt instrument is a financial asset that represents a promise to repay a debt to the holder of…
Q: Hello, the explanation you offered is not very clear. Can you tell me what I did wrong?
A: Debt to equity ratio is an important leverage ratio. Debt to equity ratio = total debt/total…
Q: Nougat Corporation wants to raise $4.9 million via a rights offering. The company currently has…
A: Right offering refers to the right provided by the company to its shareholders for buying more…
Q: 4. Asymmetric information a) means that investors may be subject to adverse selection b) means that…
A: Asymmetric information will mean there will be lack of transparency in the market and one party will…
Q: This is not correct
A: Net Capital Spending: It represents the amount spent by the firm for the acquisition of fixed…
Mr. Husker’s Tuxedos Corp. began the year 2021 with $280 million in
What is the year-end 2021 balance in retained earnings for Mr. Husker’s Tuxedos? (Enter your answer in millions of dollars.)
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- Comprehensive The following are Farrell Corporations balance sheets as of December 31, 2019, and 2018, and the statement of income and retained earnings for the year ended December 31, 2019: Additional information: a. On January 2, 2019, Farrell sold equipment costing 45,000, with a book value of 24,000, for 19,000 cash. b. On April 2, 2019, Farrell issued 1, 000 shares of common stock for 23,000 cash. c. On May 14, 2019, Farrell sold all of its treasury stock for 25,000 cash. d. On June 1, 2019, Farrell paid 50, 000 to retire bonds with a face value (and book value) of 50, 000. e. On July 2, 2019, Farrell purchased equipment for 63, 000 cash. f. On December 31, 2019, land with a fair market value of 150,000 was purchased through the issuance of a long-term note in the amount of 150,000. The note bears interest at the rate of 15% and is due on December 31, 2021. g. Deferred taxes payable represent temporary differences relating to the use of accelerated depreciation methods for income tax reporting and the straight-line method for financial statement reporting. Required: 1. Prepare a spreadsheet to support a statement of cash flows for Farrell for the year ended December 31, 2019, based on the preceding information. 2. Prepare the statement of cash flows. (Appendix 21.1) Spreadsheet and Statement Refer to the information for Farrell Corporation in P21-13. Required: 1. Using the direct method for operating cash flows, prepare a spreadsheet to support a 2019 statement of cash flows. (Hint: Combine the income statement and December 31, 2019, balance sheet items for the adjusted trial balance. Use a retained earnings balance of 291,000 in this adjusted trial balance.) 2. Prepare the statement of cash flows. (A separate schedule reconciling net income to cash provided by operating activities is not necessary.)Comprehensive The following are Farrell Corporations balance sheets as of December 31, 2019, and 2018, and the statement of income and retained earnings for the year ended December 31, 2019: Additional information: a. On January 2, 2019, Farrell sold equipment costing 45,000, with a book value of 24,000, for 19,000 cash. b. On April 2, 2019, Farrell issued 1,000 shares of common stock for 23,000 cash. c. On May 14, 2019, Farrell sold all of its treasury stock for 25,000 cash. d. On June 1, 2019, Farrell paid 50,000 to retire bonds with a face value (and book value) of 50,000. e. On July 2, 2019, Farrell purchased equipment for 63,000 cash. f. On December 31, 2019. land with a fair market value of 150,000 was purchased through the issuance of a long-term note in the amount of 150,000. The note bears interest at the rate of 15% and is due on December 31, 2021. g. Deferred taxes payable represent temporary differences relating to the use of accelerated depreciation methods for income tax reporting and the straight-line method for financial statement reporting. Required: 1. Prepare a spreadsheet to support a statement of cash flows for Farrell for the year ended December 31, 2019, based on the preceding information. 2. Prepare the statement of cash flows.On January 1, 2019, Kittson Company had a retained earnings balance of 218,600. It is subject to a 30% corporate income tax rate. During 2019, Kittson earned net income of 67,000, and the following events occurred: 1. Cash dividends of 3 per share on 4,000 shares of common stock were declared and paid. 2. A small stock dividend was declared and issued. The dividend consisted of 600 shares of 10 par common stock. On the date of declaration, the market price of the companys common stock was 36 per share. 3. The company recalled and retired 500 shares of 100 par preferred stock. The call price was 125 per share; the stock had originally been issued for 110 per share. 4. The company discovered that it had erroneously recorded depreciation expense of 45,000 in 2018 for both financial reporting and income tax reporting. The correct depreciation for 2018 should have been 20,000. This is considered a material error. Required: 1. Prepare journal entries to record Items 1 through 4. 2. Prepare Kittsons statement of retained earnings for the year ended December 31, 2019.
- Hyde Corporations capital structure at December 31, 2018, was as follows: On July 2, 2019, Hyde issued a 10% stock dividend on its common stock and paid a cash dividend of 2.00 per share on its preferred stock. Net income for the year ended December 31, 2019, was 780,000. What should be Hydes 2019 basic earnings per share? a. 7.80 b. 7.09 c. 7.68 d. 6.73Fisafolia Corporation has gross income from operations of $210,000 and operating expenses of $160,000 for 2019. The corporation also has $30,000 in dividends from publicly traded domestic corporations in which the ownership percentage was 45 percent. Calculate the corporation's dividends received deduction for 2019. $_____________ Assume that instead of $210,000, Fisafolia Corporation has gross income from operations of $135,000. Calculate the corporation's dividends received deduction for 2019. $___________ Assume that instead of $210,000, Fisafolia Corporation has gross income from operations of $158,000. Calculate the corporation's dividends received deduction for 2019. $_____________Monona Company reported net income of 29,975 for 2019. During all of 2019, Monona had 1,000 shares of 10%, 100 par, nonconvertible preferred stock outstanding, on which the years dividends had been paid. At the beginning of 2019, the company had 7,000 shares of common stock outstanding. On April 2, 2019, the company issued another 2,000 shares of common stock so that 9,000 common shares were outstanding at the end of 2019. Common dividends of 17,000 had been paid during 2019. At the end of 2019, the market price per share of common stock was 17.50. Required: 1. Compute Mononas basic earnings per share for 2019. 2. Compute the price/earnings ratio for 2019.
- Roseau Company is preparing its annual earnings per share amounts to be disclosed on its 2019 income statement. It has collected the following information at the end of 2019: 1. Net income: 120,400. Included in the net income is income from continuing operations of 130,400 and a loss from discontinued operations (net of income taxes) of 10,000. Corporate income tax rate: 30%. 2. Common stock outstanding on January 1, 2019: 20,000 shares. 3. Common stock issuances during 2019: July 6, 4,000 shares; August 24, 3,000 shares. 4. Stock dividend: On October 19, 2019, the company declared a 10% stock dividend that resulted in 2,700 additional outstanding shares of common stock. 5. Common stock prices: 2019 average market price, 30 per share; 2019 ending market price, 27 per share. 6. 7% preferred stock outstanding on January 1, 2019: 1,000 shares. Terms: 100 par, nonconvertible. Current dividends have been paid. No preferred stock issued during 2019. 7. 8% convertible preferred stock outstanding on January 1, 2019: 800 shares. The stock was issued in 2018 at 130 per share. Each 100 par preferred stock is currently convertible into 1.7 shares of common stock. Current dividends have been paid. To date, no preferred stock has been converted. 8. Bonds payable outstanding on January 1, 2019: 100,000 face value. These bonds were issued several years ago at 97 and pay annual interest of 9.6%. The discount is being amortized in the amount of 300 per year. Each 1,000 bond is currently convertible into 22 shares of common stock. To date, no bonds have been converted. 9. Compensatory share options outstanding: Key executives may currently acquire 3,000 shares of common stock at 20 per share. The options were granted in 2018. To date, none have been exercised. The unrecognized compensation cost (net of tax) related to the options is 4 per share. Required: 1. Compute the basic earnings per share. Show supporting calculations. 2. Compute the diluted earnings per share. Show supporting calculations. 3. Show how Roseau would report these earnings per share figures on its 2019 income statement. Include an explanatory note to the financial statements.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?DIVIDENDS Brooks Sporting Inc. is prepared to report the following 2019 income statement (shown in thousands of dollars). Prior to reporting this income statement, the company wants to determine its annual dividend. The company has 320,000 shares of common stock outstanding, and its stock trades at 37 per share. a. The company had a 25% dividend payout ratio in 2018. If Brooks wants to maintain this payout ratio in 2019, what will be its per-share dividend in 2019? b. If the company maintains this 25% payout ratio, what will be the current dividend yield on the companys stock? c. The company reported net income of 1.35 million in 2018. Assume that the number of shares outstanding has remained constant. What was the companys per-share dividend in 2018? d. As an alternative to maintaining the same dividend payout ratio. Brooks is considering maintaining the same per-share dividend in 2019 that it paid in 2018. If it chooses this policy, what will be the companys dividend payout ratio in 2019? e. Assume that the company is interested in dramatically expanding its operations and that this expansion will require significant amounts of capital. The company would like to avoid transactions costs involved in issuing new equity. Given this scenario, would it make more sense for the company to maintain a constant dividend payout ratio or to maintain the same per-share dividend? Explain.
- Pager Corporation began 2021 with retained earnings of $200 million. Revenues during the year were $530 million, and expenses totaled $320 million. Pager declared dividends of $60 million. What was the company's ending balance of retained earnings? To answer this question, prepare Pager's statement of retained earnings for the year ending 31Dec,2021 Prepare the statement of retained earnings.Robbin Corporation ended its fiscal year on September 30, 2018, with cash of $77 million, accounts receivable of $25 million, property and equipment of $31 million, and other long-term assets of $19 million. The company's liabilities consist of accounts payable of $33 million and long-term notes payable of $23 million. Robbin Corporation has total stockholders' equity of $96 million; of this total, common stock is $26 million. Solve for the company's ending retained earnings and then prepare Robbin Corporation's balance sheet at September 30, 2018. Use a proper heading on the balance sheet. Begin by solving for the company’s ending retained earnings. (Enter your answer in millions.) Robbin Corporation’s ending retained earnings balance is $ million.The 2019 statement of financial position of Roger’s Tennis Shop Inc. showed $630,000 in the common stock account and $4.9 million in the additional retained earnings account. The 2020 statement of financial position showed $670,000 and $5.4 million in the same two accounts, respectively. If the company paid out $620,000 in cash dividends during 2020, what was the cash flow to shareholders for the year? (Enter the answer in dollars, not millions of dollars, i.e. 1,234,567. Omit $ sign in your response.)
