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Reliable Auto Parts has 5,000 shares of common stock outstanding. The company also has the following amounts in revenue and expense accounts. Sales Revenue is $85000, General and admin expenses $7500, Interest expense $3500, Depreciation expense $5000, Preferred Stock dividends $500, Selling expense $4000, Cost of goods sold $50000.   Calculate (a)  cash flow from operations.    (b)  earnings available to common stockholders.  (c)  earnings per share.  assume 40 percent tax rate

Reliable Auto Parts has 5,000 shares of common stock outstanding. The company also has the following amounts in revenue and expense accounts. Sales Revenue is $85000, General and admin expenses $7500, Interest expense $3500, Depreciation expense $5000, Preferred Stock dividends $500, Selling expense $4000, Cost of goods sold $50000.   Calculate (a)  cash flow from operations.    (b)  earnings available to common stockholders.  (c)  earnings per share.  assume 40 percent tax rate

Financial Accounting
Financial Accounting
14th Edition
ISBN:9781305088436
Author:Carl Warren, Jim Reeve, Jonathan Duchac
Publisher:Carl Warren, Jim Reeve, Jonathan Duchac
Chapter13: Corporations: Organization, Stock Transactions, And Dividends
Section: Chapter Questions
Problem 3PA: The following selected accounts appear in the ledger of EJ Construction Inc. at the beginning of the...
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Reliable Auto Parts has 5,000 shares of common stock outstanding. The company also has the following amounts in revenue and expense accounts.

Sales Revenue is $85000, General and admin expenses $7500, Interest expense $3500, Depreciation expense $5000, Preferred Stock dividends $500, Selling expense $4000, Cost of goods sold $50000.

 

Calculate

(a)  cash flow from operations.   

(b)  earnings available to common stockholders. 

(c)  earnings per share. 

assume 40 percent tax rate

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