GB 112/212 MANAGERIAL ACC. W/ACCESS >C<
17th Edition
ISBN: 9781260218831
Author: Libby
Publisher: MCG CUSTOM
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Chapter 11, Problem 11.8E
Reporting Stockholders’ Equity
Ruth’s Chris Steakhouse is the largest upscale steakhouse company in the United States, based on total company- and franchisee-owned restaurants. The company’s menu features a broad selection of high-quality USDA prime steaks and other premium offerings. Select information from the company’s annual report is shown below:
- a. Common stock, $0.01 par value, 100,000,000 shares authorized, 34,333,858 issued and outstanding at December 31, 2014; 34,990,170 issued and outstanding at December 31, 2013.
- b. Additional paid-in capital: $155,455,000 at the end of 2014 and $169,107,000 at the end of 2013.
- c. Accumulated deficit: $68,804,000 at the end of 2013.
- d. In 2014, net income was $16,455,000 and a cash dividend of $7,138,000 was paid.
Required:
Prepare the stockholders’ equity section of the
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Selected Answer:
Company AAA is public. Selected financial information follows: Net income 35,723 Shares outstanding 9,200 Share price 75.50 Company BBB is private. It has net income of $5,500 and 2,000 shares outstanding. Using the company AAA as a comparable, what is the value per share of BBB? Enter your answer to the nearest cent (two decimal places)
Analyzing and Computing Issue Price, Treasury Stock Cost, and Shares Outstanding
The following is the stockholders' equity section from Chipotle Mexican Grill, Inc.'s balance sheet (in thousands, except per share data).
December
Shareholders' Equity
31,2014
Preferred stock, $0.01 par value, 600,000 shares authorized, no shares issued as of $
December 31, 2014
Common stock, $0.01 par value, 230,000 shares authorized, and 39,123 shares
issued as of December 31, 2014
391
Additional paid-in capital
1,300,547
Treasury stock, at cost, 4,605 common shares at December 31, 2014
(749,521)
Accumulated other comprehensive income (loss)
(429)
Retained earnings
1,722,271
Total shareholders' equity
$2,273,259
a. Show the computation to derive the $391 thousand for common stock.
39,123
shares X $ 0.01
391
V thousand (round to the nearest whole number)
b. At what average price has Chipotle issued its common stock?
Round to two decimal places.
$ 0.01
c. How many shares of Chipotle common stock are…
A corporation purchases 8,002 shares
of its own $10 par common stock for
$15 per share, recording it at cost.
What will be the effect on total
stockholders' equity?
a.increase by $40,010
b.increase by $120,030
c.decrease by $40,010
d.decrease by $120,030
Chapter 11 Solutions
GB 112/212 MANAGERIAL ACC. W/ACCESS >C<
Ch. 11 - Prob. 1QCh. 11 - Prob. 2QCh. 11 - Explain each of the following terms: (a)...Ch. 11 - Differentiate between common stock and preferred...Ch. 11 - Explain the distinction between par value and...Ch. 11 - Define additional paid-in capital.Ch. 11 - Prob. 7QCh. 11 - Define treasury stock. Why do corporations acquire...Ch. 11 - How is treasury stock reported on the balance...Ch. 11 - What are the two basic requirements to support the...
Ch. 11 - Prob. 11QCh. 11 - Prob. 12QCh. 11 - Prob. 13QCh. 11 - Prob. 14QCh. 11 - Prob. 15QCh. 11 - Katz Corporation has issued 400,000 shares of...Ch. 11 - Prob. 2MCQCh. 11 - Which of the following statements about stock...Ch. 11 - Prob. 4MCQCh. 11 - Prob. 5MCQCh. 11 - Prob. 6MCQCh. 11 - Prob. 7MCQCh. 11 - Which statement regarding dividends is false? a....Ch. 11 - Prob. 9MCQCh. 11 - Prob. 10MCQCh. 11 - Sources of Equity and Retained Earnings LO11-1...Ch. 11 - Computing the Number of Unissued Shares The...Ch. 11 - Earnings per Share Ratio How is the earnings per...Ch. 11 - Recording the Sale of Common Stock To expand...Ch. 11 - Prob. 11.5MECh. 11 - Determining the Effects of Treasury Stock...Ch. 11 - Determining the Amount of a Dividend Cole Company...Ch. 11 - Prob. 11.8MECh. 11 - Dividend Yield Ratio How is the dividend yield...Ch. 11 - Prob. 11.10MECh. 11 - Prob. 11.11MECh. 11 - Computing Shares Outstanding In a recent annual...Ch. 11 - Computing Number of Shares The charter of Vista...Ch. 11 - Prob. 11.3ECh. 11 - Reporting Stockholders Equity The financial...Ch. 11 - Reporting Stockholders Equity and Determining...Ch. 11 - Finding Amounts Missing from the Stockholders...Ch. 11 - Prob. 11.7ECh. 11 - Reporting Stockholders Equity Ruths Chris...Ch. 11 - Determining the Effects of Transactions on...Ch. 11 - Prob. 11.10ECh. 11 - Prob. 11.11ECh. 11 - Prob. 11.12ECh. 11 - Prob. 11.13ECh. 11 - Preparing the Stockholders Equity Section of the...Ch. 11 - Recording and Analyzing Treasury Stock...Ch. 11 - Prob. 11.16ECh. 11 - Prob. 11.17ECh. 11 - Computing Dividends on Preferred Stock and...Ch. 11 - Prob. 11.19ECh. 11 - Prob. 11.20ECh. 11 - Prob. 11.21ECh. 11 - Prob. 11.22ECh. 11 - Prob. 11.23ECh. 11 - Prob. 11.24ECh. 11 - Prob. 11.25ECh. 11 - Finding Missing Amounts At the end of the year,...Ch. 11 - Preparing the Stockholders Equity Section of the...Ch. 11 - Recording Transactions Affecting Stockholders...Ch. 11 - Prob. 11.4PCh. 11 - Prob. 11.5PCh. 11 - Prob. 11.6PCh. 11 - Analyzing Treasury Stock Transactions Apple Inc....Ch. 11 - Comparing Stock and Cash Dividends Chicago Company...Ch. 11 - Prob. 11.9PCh. 11 - Prob. 11.10PCh. 11 - Recording and Comparing Cash Dividends, Stock...Ch. 11 - Prob. 11.12PCh. 11 - Prob. 11.1APCh. 11 - Prob. 11.2APCh. 11 - Prob. 11.3APCh. 11 - Prob. 11.4APCh. 11 - Recording and Reporting Stockholders Equity...Ch. 11 - Case A: The charter for Rogers, Incorporated,...Ch. 11 - Prob. 1BCOMPCh. 11 - Prob. 1CCOMPCh. 11 - Prob. 1DCOMPCh. 11 - Prob. 11.1CPCh. 11 - Prob. 11.2CPCh. 11 - Prob. 11.3CPCh. 11 - Computing Dividends for an Actual Company A recent...Ch. 11 - Prob. 11.5CPCh. 11 - Prob. 11.6CP
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