Bundle: Financial & Managerial Accounting, Loose-Leaf Version, 14th + CengageNOWv2, 2 terms Printed Access Card
14th Edition
ISBN: 9781337591010
Author: Carl Warren, James M. Reeve, Jonathan Duchac
Publisher: Cengage Learning
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Chapter 12, Problem 3ADM
Caterpillar: Earnings per share
Caterpillar Inc. is the world’s leading manufacturer of construction and mining equipment. In addition, Birinyi Associates identified Caterpillar as one of the top five companies to repurchase their own shares in a recent year.12 Three recent years of earnings and average common shares outstanding data for Caterpillar are as follows (in millions):
| Year 3 | Year 2 | Year 1 | |
| Net income Average number of common shares outstanding |
$3,695 617.2 |
$3,789 645.2 |
$5,681 652.6 |
A. Determine the earnings per share for Years 1-3 Caterpillar had no
B. Interpret the trend in earnings per share using horizontal analysis for the three years in terms of the change in earnings and average shares outstanding.
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Caterpillar Inc. (CAT) is the world's leading manufacturer of construction and mining equip- ment. In addition, Birinyi Associates identified Caterpillar as one of the top five companies to repurchase its own shares in a recent year. 12 Three recent years of earnings and average common shares outstanding data for Caterpillar are as follows (in millions): Year 2 Year 3 Year 1 $2,102 $3,695 $3,789 Net income 594.3 617.2 645.2 Average number of common shares outstanding a. Determine the earnings per share for Years 1-3. Caterpillar had no preferred stock outstand. ing. Round to the nearest cent. b. Interpret the trend in earnings per share using horizontal analysis for the three years in terms of the change in earnings and average shares outstanding. Laura Lorenzetti, "5 Biggest Share Buybacks of 2014," Fortune, May 29, 2014 (online edition). MAD 12-5 Analyze and compare BB&T and Regions Financial BB&T Corporation (BBT) and Regions Financial Corporation (RF) are large regional…
Caterpillar Inc. and Deere & Company are two large companies that manufacture and sell equipment used in the construction, mining, agricultural, and forestry industries. The companies reported the following data (in millions) for two recent years:
Caterpillar
Deere
Year 2
Year 1
Year 2
Year 1
Net income
$6,147
$754
$2,368
$2,159
Average number of common shares outstanding
591
592
323
320
a. Determine the earnings per share in Year 2 and Year 1 for each company. Neither Caterpillar nor Deere have any preferred stock outstanding. Round your answers to two decimal places.
Year 2
Year 1
Caterpillar
$fill in the blank 1 per share
$fill in the blank 2 per share
Deere
$fill in the blank 3 per share
$fill in the blank 4 per share
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Caterpillar’s earnings per share for Year 1 is higher than Caterpillar’s . However, from Year 1 to Year 2, the earnings per share for both companies…
Financial statement data for this year and last year for Hanscombe Corp. are as follows:
Current Year
Last Year
Net income
$5,600,500
$4,988,000
Preferred dividends
60,000
60,000
Average number of common shares outstanding
125,000
110,000
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Current Year
Earnings per Share
Last Year
Chapter 12 Solutions
Bundle: Financial & Managerial Accounting, Loose-Leaf Version, 14th + CengageNOWv2, 2 terms Printed Access Card
Ch. 12 - Of two corporations organized at approximately the...Ch. 12 - A stockbroker advises a client to buy preferred...Ch. 12 - A corporation with both preferred stock and common...Ch. 12 - An owner of 2,500 shares of Simmons Company common...Ch. 12 - Prob. 5DQCh. 12 - Prob. 6DQCh. 12 - A corporation reacquires 60,000 shares of its own...Ch. 12 - The treasury stock in Discussion Question 7 is...Ch. 12 - What are the three classifications of restrictions...Ch. 12 - Prob. 10DQ
Ch. 12 - Dividends per share Zero Calories Company has...Ch. 12 - Entries for issuing stock On January 22, Zentric...Ch. 12 - Entries for cash dividends The declaration,...Ch. 12 - Entries for stock dividends Alpine Energy...Ch. 12 - Entries for treasury stock On May 27, Hydro...Ch. 12 - Reporting stockholders equity Using the following...Ch. 12 - Retained earnings statement Noric Cruises Inc....Ch. 12 - Dividends per share Seventy-Two Inc., a developer...Ch. 12 - Dividends per share Lightfoot Inc., a software...Ch. 12 - Entries for issuing par stock On January 22,...Ch. 12 - Entries for issuing no-par stock On May 15, Helena...Ch. 12 - Issuing stock for assets other than cash On...Ch. 12 - Selected stock transactions Alpha Sounds Corp., an...Ch. 12 - Issuing stock Willow Creek Nursery, with an...Ch. 12 - Prob. 12.8EXCh. 12 - Entries for cash dividends The declaration,...Ch. 12 - Prob. 12.10EXCh. 12 - Prob. 12.11EXCh. 12 - Effect of cash dividend and stock split Indicate...Ch. 12 - Selected dividend transactions, stock split...Ch. 12 - Treasury stock transactions Mystic Lake Inc....Ch. 12 - Prob. 12.15EXCh. 12 - Prob. 12.16EXCh. 12 - Reporting paid-in capital The following accounts...Ch. 12 - Stockholders Equity section of balance sheet The...Ch. 12 - Stockholders Equity section of balance sheet...Ch. 12 - Retained earnings statement Sumter Pumps...Ch. 12 - Prob. 12.21EXCh. 12 - Prob. 12.22EXCh. 12 - Dividends on preferred and common stock Pecan...Ch. 12 - Stock transactions for corporate expansion On...Ch. 12 - Selected stock transactions The following selected...Ch. 12 - Entries for selected corporate transactions Morrow...Ch. 12 - Entries for selected corporate transactions...Ch. 12 - Dividends on preferred and common stock Yosemite...Ch. 12 - Stock transaction for corporate expansion Pulsar...Ch. 12 - Selected stock transactions Diamondback Welding ...Ch. 12 - Entries for selected corporate transactions Nav-Go...Ch. 12 - Prob. 12.5BPRCh. 12 - Selected transactions completed by Equinox...Ch. 12 - Prob. 1ADMCh. 12 - Pacific Gas and Electric: Earnings per share...Ch. 12 - Caterpillar: Earnings per share Caterpillar Inc....Ch. 12 - BBT and Regions Financial: Earnings per share BBT...Ch. 12 - Ethics In Action Tommy Gunn is a division manager...Ch. 12 - Prob. 12.3TIF
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