Horngren's Financial & Managerial Accounting, Student Value Edition (5th Edition)
5th Edition
ISBN: 9780133851267
Author: Tracie L. Miller-Nobles, Brenda L. Mattison, Ella Mae Matsumura
Publisher: PEARSON
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Chapter 13, Problem 13.34E
Computing
Louisville Exploration Company reported these figures for 2016 and 2015:
| 2016 | 2015 | |
| Income Statement-partial: | ||
| Net Income | $ 15,500,000 | $ 18,800,000 |
| Balance Sheet-partial: | ||
| Dec. 31, 2016 | Dec. 31, 2015 | |
| Total Assets | $ 324,000,000 | $ 316,000,000 |
| 2,600,000 | 2,600,000 | |
| Common Stock | 180,000,000 | 171,000,000 |
| 7,000,000 | 5,500,000 | |
| Total Stockholders' Equity | $ 189,600,000 | $ 179,100,000 |
Compute rate of return on common stockholders' equity for 2016 assuming no dividends were paid to preferred stockholders.
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Students have asked these similar questions
Suppose the following financial information is available for Walgreen Company.
(in millions)
2017
2016
Average common stockholders' equity
$12,990.0
$11,690.0
Dividends declared for common stockholders
545
390
Dividends declared for preferred stockholders
Net income
1,895
2,195
Calculate the payout ratio and return on common stockholders' equity for 2017 and 2016. (Round answers to 1 decimal place, e.g.
12.5%.)
2017
2016
Payout ratio
Ratio Analysis
Consider the following information taken from the shareholders' equity section:
Â
(dollar amounts in thousands)
Â
2018
2017
Preferred shares
$ 1,000
Â
$ 1,000
Â
Common shares, 258,052,356 and 274,001,656 shares issued and outstanding in 2018 and 2017, respectively
3,343
Â
3,310
Â
Contributed surplus—common shares
766,382
Â
596,239
Â
Retained earnings
2,192,674
Â
2,424,403
Â
Accumulated other comprehensive (loss) income
(206,662)
Â
58,653
Â
Total shareholders’ equity
$2,756,737
Â
$3,083,605
Â
Â
Additional Information (all numbers in thousands other than per share information):
2018
Weighted average common shares outstanding
260,000
Â
Price per share at year-end
$105.45
Â
Net income
$1,358,950
Â
Preferred dividends
$100,000
Â
Common dividends
$213,440
Â
Common dividends per share
$.82
Â
Share repurchases
$834,975
Â
Â
Required:
1. Â Calculate the following for 2018 (Note: Round answers to two decimal places):
Shareholder Payout:…
Ratio Analysis
Consider the following information taken from the shareholders' equity section:
Â
(dollar amounts in thousands)
Â
2018
2017
Preferred shares
$ 1,000
Â
$ 1,000
Â
Common shares, 258,052,356 and 274,001,656 shares issued and outstanding in 2018 and 2017, respectively
3,343
Â
3,310
Â
Contributed surplus—common shares
766,382
Â
596,239
Â
Retained earnings
2,192,674
Â
2,424,403
Â
Accumulated other comprehensive (loss) income
(206,662)
Â
58,653
Â
Total shareholders’ equity
$2,756,737
Â
$3,083,605
Â
Â
Additional Information (all numbers in thousands other than per share information):
2018
Weighted average common shares outstanding
260,000
Â
Price per share at year-end
$105.45
Â
Net income
$1,358,950
Â
Preferred dividends
$100,000
Â
Common dividends
$213,440
Â
Common dividends per share
$.82
Â
Share repurchases
$834,975
Â
Â
Required:
1. Â Calculate the following for 2018 (Note: Round answers to two decimal places):
Shareholder Profitability:…
Chapter 13 Solutions
Horngren's Financial & Managerial Accounting, Student Value Edition (5th Edition)
Ch. 13 - Prob. 1QCCh. 13 - Prob. 2QCCh. 13 - Suppose Value Home and Garden Imports issued...Ch. 13 - Prob. 4QCCh. 13 - Prob. 5QCCh. 13 - Assume that a company paid 6 per share to purchase...Ch. 13 - Prob. 7QCCh. 13 - A small stock dividend a. decreases common stock....Ch. 13 - Jackson Health Foods has 8,000 shares of 2 par...Ch. 13 - Prob. 10QC
Ch. 13 - Prob. 1RQCh. 13 - Prob. 2RQCh. 13 - How does authorized stock differ from outstanding...Ch. 13 - What are the four basic rights of stockholders?Ch. 13 - How does preferred stock differ from common stock?Ch. 13 - Prob. 6RQCh. 13 - What are the two basic sources of stockholders'...Ch. 13 - Prob. 8RQCh. 13 - If stock is issued for assets other than cash,...Ch. 13 - Prob. 10RQCh. 13 - Where and how is treasury stock reported on the...Ch. 13 - What is the effect on the accounting equation when...Ch. 13 - What are the three relevant dates involving cash...Ch. 13 - How does cumulative preferred stock differ from...Ch. 13 - What is a stock dividend?Ch. 13 - Prob. 16RQCh. 13 - What are some reasons corporations issue stock...Ch. 13 - Prob. 18RQCh. 13 - What does the statement of retained earnings...Ch. 13 - What is a prior-period adjustment?Ch. 13 - Prob. 21RQCh. 13 - What does earnings per share report, and how is it...Ch. 13 - What is the price/earnings ratio, and how is it...Ch. 13 - What does the rate of return on common stock show,...Ch. 13 - Prob. 13.1SECh. 13 - Journalizing issuance of stock- at par and at a...Ch. 13 - Journalizing issuance of stock-no-par Ashford...Ch. 13 - Journalizing issuance of stock- stated value...Ch. 13 - Journalizing issuance o f stock for assets other...Ch. 13 - Prob. 13.6SECh. 13 - Accounting for cash dividends Frenchroast Company...Ch. 13 - Dividing cash dividends between preferred and...Ch. 13 - Prob. 13.9SECh. 13 - Prob. 13.10SECh. 13 - Prob. 13.11SECh. 13 - Preparing a statement of retained earnings Tinder,...Ch. 13 - Analyzing the effect of prior-period adjustments...Ch. 13 - Prob. 13.14SECh. 13 - Prob. 13.15SECh. 13 - Prob. 13.16SECh. 13 - Prob. 13.17ECh. 13 - Prob. 13.18ECh. 13 - Journaling issuance of stock Skylar Systems...Ch. 13 - Prob. 13.20ECh. 13 - Prob. 13.21ECh. 13 - Prob. 13.22ECh. 13 - Journalizing treasury stock transactions and...Ch. 13 - Journalizing issuance of s tock and treasury stock...Ch. 13 - Computing dividends on preferred and common stock...Ch. 13 - Computing dividends on preferred and common stock...Ch. 13 - Journalizing a stock dividend and reporting...Ch. 13 - Prob. 13.28ECh. 13 - Reporting stockholders' equity after a stock split...Ch. 13 - Determining the effects of cash dividends, stock...Ch. 13 - Prob. 13.31ECh. 13 - Prob. 13.32ECh. 13 - Computing earnings per share and price/earnings...Ch. 13 - Computing rate of return on common stockholders'...Ch. 13 - Organizing a corporation and issuing stock John...Ch. 13 - Identifying sources of equity, stock issuance, and...Ch. 13 - Prob. 13.37APCh. 13 - Journalizing dividends and treasury stock...Ch. 13 - Journalizing dividend and treasury stock...Ch. 13 - Prob. 13.40APCh. 13 - Prob. 13.41BPCh. 13 - Prob. 13.42BPCh. 13 - Prob. 13.43BPCh. 13 - Journalizing dividends and treasury stock...Ch. 13 - Journalizing dividend and treasury stock...Ch. 13 - Prob. 13.46BPCh. 13 - Sources of equity and journalizing stock issuance...Ch. 13 - Prob. 13.1CTFSCCh. 13 - Prob. 13.1CTCA
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