The stockholders’ equity section of Bridgeport Corp, as of December 31, 2017 is as follows: 9% preferred stock, $100 par value, authorized 100,000 shares, outstanding 70,000 shares $7,000,000 Common stock, $1 par, authorized and issued 7,100,000 shares 7,100,000 Additional paid-in capital 78,280,000 Retained earnings 495,200,000 $587,580,000 Net income was $14,260,000 in 2017. This net income figure reflects a total effective tax rate of 35%. Included in the net income figure is a $5,000,000 (before tax) loss from an earthquake centered in a city where Bridgeport has a warehouse. Earthquakes are rare in that city. Preferred stock dividends of $630,000 were declared and paid in 2017. Bridgeport Corp. declared and paid dividends of $2,810,000 to common stockholders in 2017. Compute earnings per share data as it should appear on the income statement of Bridgeport Corporation. (Round answers to 2 decimal places, e.g. 1.48.) Earnings Per Share Net Income / (Loss) $enter Earnings Per Share in dollars rounded to 2 decimal places
Reporting Cash Flows
Reporting of cash flows means a statement of cash flow which is a financial statement. A cash flow statement is prepared by gathering all the data regarding inflows and outflows of a company. The cash flow statement includes cash inflows and outflows from various activities such as operating, financing, and investment. Reporting this statement is important because it is the main financial statement of the company.
Balance Sheet
A balance sheet is an integral part of the set of financial statements of an organization that reports the assets, liabilities, equity (shareholding) capital, other short and long-term debts, along with other related items. A balance sheet is one of the most critical measures of the financial performance and position of the company, and as the name suggests, the statement must balance the assets against the liabilities and equity. The assets are what the company owns, and the liabilities represent what the company owes. Equity represents the amount invested in the business, either by the promoters of the company or by external shareholders. The total assets must match total liabilities plus equity.
Financial Statements
Financial statements are written records of an organization which provide a true and real picture of business activities. It shows the financial position and the operating performance of the company. It is prepared at the end of every financial cycle. It includes three main components that are balance sheet, income statement and cash flow statement.
Owner's Capital
Before we begin to understand what Owner’s capital is and what Equity financing is to an organization, it is important to understand some basic accounting terminologies. A double-entry bookkeeping system Normal account balances are those which are expected to have either a debit balance or a credit balance, depending on the nature of the account. An asset account will have a debit balance as normal balance because an asset is a debit account. Similarly, a liability account will have the normal balance as a credit balance because it is amount owed, representing a credit account. Equity is also said to have a credit balance as its normal balance. However, sometimes the normal balances may be reversed, often due to incorrect journal or posting entries or other accounting/ clerical errors.
The stockholders’ equity section of Bridgeport Corp, as of December 31, 2017 is as follows:
| 9% |
||||
| 100,000 shares, outstanding 70,000 shares |
$7,000,000
|
|||
| Common stock, $1 par, authorized and issued 7,100,000 shares |
7,100,000
|
|||
| Additional paid-in capital |
78,280,000
|
|||
| |
495,200,000 | |||
| $587,580,000 |
Net income was $14,260,000 in 2017. This net income figure reflects a total effective tax rate of 35%. Included in the net income figure is a $5,000,000 (before tax) loss from an earthquake centered in a city where Bridgeport has a warehouse. Earthquakes are rare in that city. Preferred stock dividends of $630,000 were declared and paid in 2017. Bridgeport Corp. declared and paid dividends of $2,810,000 to common stockholders in 2017.
Compute earnings per share data as it should appear on the income statement of Bridgeport Corporation. (Round answers to 2 decimal places, e.g. 1.48.)
| Earnings Per Share | ||
|
Net Income / (Loss)
|
$enter Earnings Per Share in dollars rounded to 2 decimal places
|
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