Chapter 2, Problem 2.1E

The total amount of cash and other assets received by a corporation from the stockholders in exchange for the shares is ________. A. always equal to par value B. referred to as retained earnings C. always below its stated value D. referred to as paid-in capital

The income statement, statement of retained earnings, and balance sheet for Santiago Systems are as follows: Includes both state and federal taxes. Refer to the information for Santiago Systems above. Required: Note: Round answers to four decimal places. 1. Calculate the average common stockholders equity. 2. Calculate the return on stockholders equity.

The financial condition of two companies is expressed in the following accounting equation:    Assets = Liabilities + Common Stock + Retained Earnings Allen $ 12,000 = $ 8,760 + $ 2,760 + $ 480 White $ 18,150 = $ 4,200 + $ 9,750 + $ 4,200 Requiredc. Assume Allen incurs a $6,100 operating loss. The remaining assets are sold for the value shown on the books, and the cash proceeds are distributed to the creditors and investors. How much money will be paid to creditors and how much will be paid to investors?d. Assume White incurs a $6,100 operating loss. The remaining assets are sold for the value shown on the books, and the cash proceeds are distributed to the creditors and investors. How much money will be paid to creditors and how much will be paid to investors?

What amount of total assets does the company report on its balance sheet? What amount of total liabilities does the company report on its balance sheet? Using the accounting equation, determine the company’s stockholders’ equity. Compare this amount to the amount of stockholders’ equity reported on the company’s balance sheet. How many years of information are reported on the company’s income statement? How many years of information are reported on the company’s balance sheet? What is the difference between the information reported on the income statement and the information reported on the balance sheet?

Consider the following balance-sheet entries for Delta Corporation: (a) Compute the following for the firm:Current assets:$ ________________Current liabilities:$ _____________Working capital:$ _______________Shareholders' equity:$ _________                                                                          (b) If the firm had a net income after taxes of $500,000, what are the earnings per share?(c) When the firm issued its common stock, what was the market price of the stock per share?

Describe” the Ch9 - return on assets ratio. Explain the factors used in the formula, how the ratio assists the investor in evaluating a company’s performance, and whether it assesses liquidity, solvency, or profitability. Using the numbers in the recent Balance Sheet (Statements of Financial Position) and Income Statement (Statement of Operations) of a U.S. public corporation (state page numbers from the Form 10-K Annual Report), show your calculation and “analyze” the return on assets ratio for a public corporation and its competitor.  Describe if the company is doing well in comparison to its competitor’s ratio results.

Using the accounting equation, determine the company’s stockholders’ equity. Compare this amount to the amount of stockholders’ equity reported on the company’s balance sheet. What is the difference between the information reported on the income statement and the information reported on the balance sheet?