Financial Accounting: Business Process Approach
3rd Edition
ISBN: 9780136115274
Author: Jane L. Reimers
Publisher: Prentice Hall
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Chapter 8, Problem 60PA
1.
To determine
Determine numbers of fresh shares of common stock were issued during the year 2010.
2.
To determine
Determine the average issue price of the stock was issued during the year 2010.
3.
To determine
Determine the amount of dividends declared during the year 2010.
4.
To determine
Determine whether the company holds any
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Consider the following financial statements for Dell Corporation:
The closing stock price for Dell was $13.47 on January 28, 2011. The numbers of outstanding shares were 1,944 million in 2011and1,944 million in 2010, respectively. The income tax rates were 21.3% in 2011 and 29.2% in 2010. From the financial data presented, compute the following financial ratios for 2011, and make an informed analysis of Dell's financial health:(a) Debt ratio(b) Times-interest-earned ratio(c) Current ratio(d) Quick (acid test) ratio(e) Inventory-turnover ratio(f) Days-sales-outstanding ratio(g) Total-assets-turnover ratio(h) Profit margin on sales (i) Return on total assets(j) Return on common equity(k) Price/earnings ratio(l) Book value per share
Listed are the equity sections of balance sheets for years 2014 and 2015 as reported by Mountain Air Ski Resorts, Inc. The overall value of stockholders' equity has risen from $1,800,000 to $6,600,000. Use the statements to discover how and why this happened. The company paid total dividends of $210,000 during fiscal 2015.
a. What was Mountain Air's net income for fiscal 2015?
b. How many new shares did the corporation issue and sell during the year?
c. At what average price per share did the new stock sold during 2015 sell?
d. At what price per share did Mountain Air's original 420,000 shares sell?
Assume that the stockholders' equity section on the balance sheet of Mangum's, a popular department store, is shown below. During the year, the company reported net income of $241,255,000 and declared and paid dividends of $11,899,000.
Stockholders’ Equity:
Current Year
Last Year
Common stock, Class A—116,740,308 and 116,475,495 shares issued; ? and ? shares outstanding
$ 1,167,000
$ 1,165,000
Common stock, Class B (convertible)—4,100,929 shares issued and outstanding
41,000
41,000
Additional paid-in capital
773,055,000
788,987,000
Retained earnings
2,487,727,000
?
Less treasury stock, at cost, Class A—47,306,748 and 45,420,148 shares
(1,883,581,000)
(938,560,000)
Required:
What is the par value of Magnum's Class A common stock?
How many shares of Class A Common Stock were outstanding at the end of last year and the end of the current year?
What amount was reported in the Retained Earnings account at the end of last year?
How is the dollar amount in the treasury…
Chapter 8 Solutions
Financial Accounting: Business Process Approach
Ch. 8 - Prob. 1YTCh. 8 - Prob. 2YTCh. 8 - Prob. 3YTCh. 8 - Prob. 4YTCh. 8 - 1. Compare a stock split and a stock dividend. 2....Ch. 8 - Prob. 6YTCh. 8 - Prob. 1QCh. 8 - Prob. 2QCh. 8 - Prob. 3QCh. 8 - Prob. 4Q
Ch. 8 - Prob. 5QCh. 8 - Prob. 6QCh. 8 - Prob. 7QCh. 8 - Prob. 8QCh. 8 - Prob. 9QCh. 8 - Prob. 10QCh. 8 - Prob. 11QCh. 8 - Would treasury stock be considered authorized,...Ch. 8 - Prob. 13QCh. 8 - Prob. 14QCh. 8 - Prob. 15QCh. 8 - What are the two sections of the shareholders...Ch. 8 - Prob. 17QCh. 8 - Prob. 18QCh. 8 - Prob. 19QCh. 8 - Prob. 1MCQCh. 8 - Prob. 2MCQCh. 8 - Treasury stock is a. a companys own stock that it...Ch. 8 - Prob. 4MCQCh. 8 - Prob. 5MCQCh. 8 - Prob. 6MCQCh. 8 - The number of shares of stock designated as issued...Ch. 8 - Prob. 8MCQCh. 8 - Prob. 9MCQCh. 8 - Prob. 10MCQCh. 8 - Prob. 1SEACh. 8 - Prob. 2SEACh. 8 - Prob. 3SEACh. 8 - Prob. 4SEACh. 8 - Prob. 5SEACh. 8 - Prob. 6SEACh. 8 - Prob. 7SEACh. 8 - Prob. 8SEACh. 8 - Prob. 9SEACh. 8 - Calculate retained earnings balance. (LO 5)....Ch. 8 - Prob. 11SEACh. 8 - Prob. 12SEBCh. 8 - Prob. 13SEBCh. 8 - Prob. 14SEBCh. 8 - Prob. 15SEBCh. 8 - Prob. 16SEBCh. 8 - Prob. 17SEBCh. 8 - Prob. 18SEBCh. 8 - Prob. 19SEBCh. 8 - Prob. 20SEBCh. 8 - Prob. 21SEBCh. 8 - Prob. 22SEBCh. 8 - Prob. 23EACh. 8 - Prob. 24EACh. 8 - Prob. 25EACh. 8 - Prob. 26EACh. 8 - Prob. 27EACh. 8 - Prob. 28EACh. 8 - Prob. 29EACh. 8 - Prob. 30EACh. 8 - Prob. 31EACh. 8 - Analyze equity accounts. (LO 1, 2, 3, 5). The...Ch. 8 - Prob. 33EACh. 8 - Prob. 34EACh. 8 - Prob. 35EACh. 8 - Prob. 36EACh. 8 - Prob. 37EACh. 8 - Prob. 38EACh. 8 - Prob. 39EBCh. 8 - Prob. 40EBCh. 8 - Prob. 41EBCh. 8 - Prob. 42EBCh. 8 - Prob. 43EBCh. 8 - Prob. 44EBCh. 8 - Prob. 45EBCh. 8 - Prob. 46EBCh. 8 - Prob. 47EBCh. 8 - Prob. 48EBCh. 8 - Prob. 49EBCh. 8 - Prob. 50EBCh. 8 - Prob. 51EBCh. 8 - Prob. 52EBCh. 8 - Prob. 53EBCh. 8 - Prob. 54EBCh. 8 - Prob. 55PACh. 8 - Prob. 56PACh. 8 - Prob. 57PACh. 8 - Prob. 58PACh. 8 - Prob. 59PACh. 8 - Prob. 60PACh. 8 - Prob. 61PACh. 8 - Prob. 62PACh. 8 - Prob. 63PBCh. 8 - Prob. 64PBCh. 8 - Prob. 65PBCh. 8 - Prob. 66PBCh. 8 - Prob. 67PBCh. 8 - Prob. 68PBCh. 8 - Prob. 69PBCh. 8 - Prob. 70PBCh. 8 - Prob. 1FSACh. 8 - Prob. 2FSACh. 8 - Prob. 3FSACh. 8 - Prob. 1CTPCh. 8 - Prob. 2CTPCh. 8 - Prob. 1IECh. 8 - Prob. 2IECh. 8 - Prob. 3IECh. 8 - Prob. 4IECh. 8 - Prob. 5IE
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- Assume that the stockholders' equity section on the balance sheet of Mangum's, a popular department store, is shown below. During the year, the company reported net income of $241,255,000 and declared and paid dividends of $11,899,000. Stockholders’ Equity: Current Year Last Year Common stock, Class A—116,740,308 and 116,475,495 shares issued; ? and ? shares outstanding $ 1,167,000 $ 1,165,000 Common stock, Class B (convertible)—4,100,929 shares issued and outstanding 41,000 41,000 Additional paid-in capital 773,055,000 788,987,000 Retained earnings 2,487,727,000 ? Less treasury stock, at cost, Class A—47,306,748 and 45,420,148 shares (1,883,581,000) (938,560,000) Required: How is the dollar amount in the treasury stock account at the end of the current year reflected on the asset side of the balance sheet? During the current year, by what amount did treasury stock transactions increase or decrease stockholders' equity? At the end of the current year, what was the…arrow_forwardThomas Corporation began business by issuing $2,000 of common stock on January 1, 2010. The business performed $8,000 of service on account in 2010 and collected $6,000 of this amount by year-end. It paid operating expenses of $4,500 and paid a $500 dividend to stockholders. a) What is the amount of total assets at the end of 2010? b) What is the amount of cash on hand at the end of 2010? c) What is the net income for 2010?arrow_forwardThe following financial information is available for Thompson Corporation. (in millions) 2012 2011 Average common stockholders' equity $2,532 $2,591 Dividends declared for common stockholders 298 611 Dividends declared for preferred stockholders 40 40 Net income 504 555 Calculate the payout ratio and return on common stockholders' equity ratio for 2012 and 2011.arrow_forward
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