Intermediate Accounting: Reporting And Analysis
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN: 9781337788281
Author: James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher: Cengage Learning
bartleby

Videos

Textbook Question
Chapter 16, Problem 17P

Graham Railways Inc. is evaluating its operations and provides the following information:

Chapter 16, Problem 17P, Graham Railways Inc. is evaluating its operations and provides the following information: Required:

Required:

For each of the years 2017 through 2019, calculate Graham Railways’s earnings per share and dividend yield ratio. The company has no preferred stock or other potentially dilutive securities outstanding.

Blurred answer
Students have asked these similar questions
Having finalised its accounts for the year ended 31 December 2020, Gloomy Ltd has decided to keep dividend per share the same as it was the previous year, despite the fact that both EPS (Earnings per Share) and year-end share price are lower in 2020 than they were in 2019. In calculating investment ratios, the company uses dividend cover (i.e. how many times EPS covers dividend) rather than the dividend payout ratio (i.e. expression of dividend as a percentage of EPS). The same number of shares were in issue in both years. Which of the following statements is correct? Both dividend yield and dividend cover will be higher in 2020 than in 2019. In 2020, dividend yield will be higher than in 2019 but dividend cover will be lower. In 2020, dividend yield will be lower than in 2019 but dividend cover will be higher. Both dividend yield and dividend cover will be lower in 2020 than in 2019.
Threads Limited manufactures nuts and bolts, which are sold to industrial users. The abbreviated financial statements for 2018 and 2019 are as follows: See images   Dividends were paid on ordinary shares of £70,000 and £72,000 for 2018 and 2019, respectively. Required: (a) Calculate the following financial ratios for both 2018 and 2019 (using year-end figures for statement of financial position items): 1 return on capital employed 2 operating profifit margin 3 gross profifit margin 4 current ratio 5 acid test ratio 6 settlement period for trade receivables 7 settlement period for trade payables 8 inventories turnover period. (b) Comment on the performance of Threads Limited from the viewpoint of a business considering supplying a substantial amount of goods to Threads Limited on usual trade credit terms.
The shareholders’ equity of Kramer Industries includes the data shown below. During 2022, cash dividends of $150 million were declared. Dividends were not declared in 2020 or 2021.    ($ in millions) Common stock $ 200   Paid-in capital—excess of par, common   800   Preferred stock, 10%, nonparticipating   100   Paid-in capital—excess of par, preferred   270     Required:Determine the amount of dividends payable to preferred shareholders and to common shareholders under each of the following two assumptions regarding the characteristics of the preferred stock. (Enter your answers in millions (i.e., 10,000,000 should be entered as 10).)Assumption A—The preferred stock is noncumulative.Assumption B—The preferred stock is cumulative.

Chapter 16 Solutions

Intermediate Accounting: Reporting And Analysis

Ch. 16 - What items might a corporation include in the...Ch. 16 - Prob. 12GICh. 16 - Prob. 13GICh. 16 - Prob. 14GICh. 16 - Prob. 15GICh. 16 - On what date are stock dividends and splits...Ch. 16 - Prob. 17GICh. 16 - What two earnings per share figures generally are...Ch. 16 - Prob. 19GICh. 16 - Prob. 20GICh. 16 - Prob. 21GICh. 16 - A company with potentially dilutive share options...Ch. 16 - Prob. 23GICh. 16 - Cash dividends on the 10 par value common stock of...Ch. 16 - A prior period adjustment should be reflected, net...Ch. 16 - Prince Corporations accounts provided the...Ch. 16 - Effective May 1, the shareholders of Baltimore...Ch. 16 - Kent Corporation was organized on January 1, 2014....Ch. 16 - For purposes of computing the weighted average...Ch. 16 - In determining basic earnings per share, dividends...Ch. 16 - Hyde Corporations capital structure at December...Ch. 16 - Iredell Company has 2,500,000 shares of common...Ch. 16 - Prob. 10MCCh. 16 - Prob. 1RECh. 16 - Prob. 2RECh. 16 - Prob. 3RECh. 16 - Use the same facts as in RE 16-3, but instead...Ch. 16 - Given the following current year information,...Ch. 16 - In Year 2, Adams Corporation discovered that it...Ch. 16 - Howard Corporal ion had 10,000 shares of common...Ch. 16 - Given the following year-end information for...Ch. 16 - Aiken Corporation has compensatory share options...Ch. 16 - Marlboro Corporation has 9% convertible preferred...Ch. 16 - Sarasota Corporation has 9% convertible bonds...Ch. 16 - Given the following year-end information, compute...Ch. 16 - Various Dividends Carlyon Company listed the...Ch. 16 - Dividends Andrews Company has 80,000 available to...Ch. 16 - Prob. 3ECh. 16 - Prob. 4ECh. 16 - Stock Dividend Comparison Although Oriole Company...Ch. 16 - Prior Period Adjustments Scobie Company began 2019...Ch. 16 - Prob. 7ECh. 16 - Prob. 8ECh. 16 - Prob. 9ECh. 16 - Shareholders Equity Herrera Manufacturing...Ch. 16 - Prob. 11ECh. 16 - Weighted Average Shares At the beginning of 2019,...Ch. 16 - Weighted Average Shares At the beginning of the...Ch. 16 - Earnings per Share The 2018 balance sheet for...Ch. 16 - Prob. 15ECh. 16 - Jumbo Corporation reported the following...Ch. 16 - Lucas Company reports net income of 5,125 for the...Ch. 16 - Monona Company reported net income of 29,975 for...Ch. 16 - Lyon Company shows the following condensed income...Ch. 16 - Extreme Company reported the following information...Ch. 16 - Mills Company had five convertible securities...Ch. 16 - Prob. 22ECh. 16 - Prob. 23ECh. 16 - Prob. 24ECh. 16 - Prob. 25ECh. 16 - Tama Companys capital structure consists of common...Ch. 16 - Percy Company has 15,000 shares of common stock...Ch. 16 - Prob. 28ECh. 16 - Keener Company has had 1,000 shares of 7%, 100 par...Ch. 16 - Otter Tail, Inc., began operations in January 2015...Ch. 16 - On January 1, 2019, Kittson Company had a retained...Ch. 16 - Prob. 4PCh. 16 - Alert Companys shareholders equity prior to any of...Ch. 16 - Prob. 6PCh. 16 - Oakwood Inc. is a public enterprise whose shares...Ch. 16 - Prob. 8PCh. 16 - Prob. 9PCh. 16 - Prob. 10PCh. 16 - Raun Company had the following equity items as of...Ch. 16 - Prob. 12PCh. 16 - Prob. 13PCh. 16 - Gray Company lists the following shareholders...Ch. 16 - Included in the December 31, 2018, Jacobi Company...Ch. 16 - Prob. 16PCh. 16 - Graham Railways Inc. is evaluating its operations...Ch. 16 - Prob. 18PCh. 16 - Anoka Company reported the following selected...Ch. 16 - Winona Company began 2019 with 10,000 shares of 10...Ch. 16 - Waseca Company had 5 convertible securities...Ch. 16 - Roseau Company is preparing its annual earnings...Ch. 16 - Prob. 23PCh. 16 - Frost Company has accumulated the following...Ch. 16 - The controller of Red Lake Corporation has...Ch. 16 - Prob. 26PCh. 16 - Problems may be encountered in accounting for...Ch. 16 - Stock splits and stock dividends may be used by a...Ch. 16 - Earnings per share (EPS) is the most featured...Ch. 16 - The earnings per share data required of a company...Ch. 16 - Prob. 5CCh. 16 - Public enterprises are required to present...Ch. 16 - Prob. 7CCh. 16 - Ryan Company has as a goal that its earnings per...
Knowledge Booster
Accounting
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • Required:a. Calculate the following ratios for Sweets plc for 2021 and 2020, showing the formulas and workings:1- ROCE2- ROE3- Earnings per share4- Net profit margin5- Asset turnover6- Stock holding days7- Debtors collection period8- Current ratio9- Gearing ratio10- Interest cover
    Remington, Inc., has $800,000 of 4% preferred stock and $1,200,000 of common stock outstanding, each having a par value of $10 per share. No dividends have been paid or declared during 2017 and 2018. As of December 31, 2019, it is desired to distribute $270,000 in dividends.     Can you please explain how much will the preferred and common stockholders receive under each of the following assumptions:    (a) The preferred is noncumulative and nonparticipating.    (b) The preferred is cumulative and nonparticipating.
    Lexington Co. has the following securities outstanding on December 31, 2017 (its first year of operations).   Cost Fair Value Greenspan Corp. stock $20,000 $19,000 Summerset Company stock 9,500 8,800 Tinkers Company stock 20,000 20,600   $49,500 $48,400 During 2018, Summerset Company stock was sold for $9,200, the difference between the $9,200 and the “fair value” of $8,800 being recorded as a “Gain on Sale of Investments.” The market price of the stock on December 31, 2018, was Greenspan Corp. stock $19,900; Tinkers Company stock $20,500.Instructions(a) What justification is there for valuing equity securities at fair value and reporting the unrealized gain or loss as part of net income?(b) How should Lexington Co. report this information in its financial statements at December 31, 2017? Explain.(c) Did Lexington Co. properly account for the sale of the Summerset Company stock? Explain.(d) Are there any additional entries necessary for Lexington Co. at December 31,…
  • Presented below is information related to Sheridan Corp. for the year 2020. The information is meant for a multiple-step income statement for 2020. Assume that 69,920 shares if common stock are outstanding for the entire year. Net sales   $ 1,196,000   Write-off of inventory due to obsolescence   $ 73,600 Cost of goods sold   717,600   Depreciation expense omitted by accident in 2019   50,600 Selling expenses   59,800   Casualty loss   46,000 Administrative expenses   44,160   Cash dividends declared   41,400 Dividend revenue   18,400   Retained earnings at December 31, 2019   901,600 Interest revenue   6,440   Effective tax rate of  20% on all items   I had an income statement that for the most part was right that follows:    SHERIDAN CORP.Income Statement For the Year Ended December 31, 2020   Revenue: Net Sales $1196000 COGS $717600 = Gross Profit $478400 Operating Expenses: Selling Exp $59800 Admin Exp $44160 = Total Operating Exp $103960…
    Here are the 2018 and 2019 (incomplete) balance sheets for Newble Oil Corp.   BALANCE SHEET AT END OF YEAR (Figures in $ millions) Assets 2018 2019 Liabilities and Shareholders' Equity 2018 2019 Current assets $ 315   $ 445   Current liabilities $ 235   $ 245   Net fixed assets   1,250     1,445   Long-term debt   855     970       a&b. What was shareholders' equity at the end of 2018 and 2019? c. If Newble paid dividends of $125 million in 2019 and made no stock issues, what must have been net income during the year? d. If Newble purchased $325 million in fixed assets during 2019, what must have been the depreciation charge on the income statement?
    I need help with an income statement that I can't seem to get right.... Presented below is information related to Sheridan Corp. for the year 2020. The information is meant for a multiple-step income statement for 2020. Assume that 69,920 shares if common stock are outstanding for the entire year. Net sales   $ 1,196,000   Write-off of inventory due to obsolescence   $ 73,600 Cost of goods sold   717,600   Depreciation expense omitted by accident in 2019   50,600 Selling expenses   59,800   Casualty loss   46,000 Administrative expenses   44,160   Cash dividends declared   41,400 Dividend revenue   18,400   Retained earnings at December 31, 2019   901,600 Interest revenue   6,440   Effective tax rate of  20% on all items
  • i. Use the following simplified 2019 balance sheet to show, in general terms, how an improvement in one of the ratios—say, the DSO—would affect the stock price. For example, if the company could improve its collection procedures and thereby lower the DSO from 38.1 days to 27.8 days, how would that change “ripple through” the financial statements (shown in thousands below) and influence the stock price? Accounts receivable $ 402                                         Debt $ 965                              Other current assets 888 Net fixed assets 361 Equity 686.                        Total assets $1,651                  Total liabilities and equity $1,651 j. Although financial statement analysis can provide useful information about a company’s operations and its financial condition, this type of analysis does have some potential problems and limitations, and it must be used with care and judgment. What are some problems and limitations?
    The attached file contains hypothetical data for working this problem. Goodman Corporation’s and Landry Incorporated’s stock prices and dividends, along with the Market Index, are shown in the file. Stock prices are reported for December 31 of each year, and dividends reflect those paid during the year. The market data are adjusted to include dividends. On a stand-alone basis which corporation is the least risky?
    During the year ended December 31, 2020, Gluco Inc. split its stock on a 3-for-1 basis. In its annual report for 2019, the firm reported net income of $987,900 for 2019, with an average 295,000 shares of common stock outstanding for that year. There was no preferred stock.Required: What amount of net income for 2019 will be reported in Gluco's 2020 annual report? Calculate Gluco's earnings per share for 2019 that would have been reported in the 2019 annual report. (Round your answer to 2 decimal places.) Calculate Gluco's earnings per share for 2019 that will be reported in the 2020 annual report for comparative purposes.  Net Income  ? Earnings Per Share  ? Earnings Per Share  ?
    • SEE MORE QUESTIONS
    Recommended textbooks for you
  • Intermediate Accounting: Reporting And Analysis
    Accounting
    ISBN:9781337788281
    Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
    Publisher:Cengage Learning
    Cornerstones of Financial Accounting
    Accounting
    ISBN:9781337690881
    Author:Jay Rich, Jeff Jones
    Publisher:Cengage Learning
    Financial Accounting
    Accounting
    ISBN:9781305088436
    Author:Carl Warren, Jim Reeve, Jonathan Duchac
    Publisher:Cengage Learning
  • EBK CONTEMPORARY FINANCIAL MANAGEMENT
    Finance
    ISBN:9781337514835
    Author:MOYER
    Publisher:CENGAGE LEARNING - CONSIGNMENT
  • Intermediate Accounting: Reporting And Analysis
    Accounting
    ISBN:9781337788281
    Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
    Publisher:Cengage Learning
    Cornerstones of Financial Accounting
    Accounting
    ISBN:9781337690881
    Author:Jay Rich, Jeff Jones
    Publisher:Cengage Learning
    Financial Accounting
    Accounting
    ISBN:9781305088436
    Author:Carl Warren, Jim Reeve, Jonathan Duchac
    Publisher:Cengage Learning
    EBK CONTEMPORARY FINANCIAL MANAGEMENT
    Finance
    ISBN:9781337514835
    Author:MOYER
    Publisher:CENGAGE LEARNING - CONSIGNMENT
    Financial ratio analysis; Author: The Finance Storyteller;https://www.youtube.com/watch?v=MTq7HuvoGck;License: Standard Youtube License