Financial Accounting (12th Edition) (What's New in Accounting)
12th Edition
ISBN: 9780134725987
Author: C. William Thomas, Wendy M. Tietz, Walter T. Harrison Jr.
Publisher: PEARSON
expand_more
expand_more
format_list_bulleted
Question
Chapter 12, Problem 12.10S
1.
To determine
To Compute: The earnings per share and price-earnings ratio for Incorporation SC.
2.
To determine
To Mention: The worth of net income of Incorporation SC.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solutionStudents have asked these similar questions
(Learning Objective 6: Analyze and evaluate liquidity and debt-paying ability) LO 6McClain Company’s condensed and adapted balance sheet at December 31, 2018, follows:(In millions)Total current assets....................................................... $15.9Property, plant, equipment, and other assets................. 16.2$32.1Total current liabilities.................................................. $ 9.6Total long-term liabilities.............................................. 5.5Total shareholders’ equity............................................. 17.0$32.1Assume that during the first quarter of the following year, 2019, McClain completed the following transactions:a. Earned revenue of $2.8 million, on account.b. Borrowed $7.0 million in long-term debt.c. Paid half of the current liabilities.d. Paid selling expense of $0.6 million.e. Accrued general expense of $0.8 million. Credit General Expense Payable, a currentliability.f. Purchased equipment for $4.6 million, paying cash…
(Learning Objectives 2, 3, 4: Reconstruct transactions from the financial statements)Parker Networking Solutions began operations on January 1, 2018, and immediately issuedits stock, receiving cash. Parker’s balance sheet at December 31, 2018, reported the followingstockholders’ equity:Common stock, $1 par...................... $ 59,000Additional paid-in capital.................. 473,500Retained earnings.............................. 40,000Treasury stock, 300 shares................ (3,600)Total stockholders’ equity............ $568,900During 2018, Parkera. issued stock for $9 per share.b. purchased 800 shares of treasury stock, paying $12 per share.c. resold some of the treasury stock.d. declared and paid cash dividends.
Below is the financial data for Arla Inc. for the year ended December 31, 2020:
Market price per share...
Net Income......
$150.00
$1,750,000
Preferred Dividends declared...
$75,000
Average # of common shares.......
Dividends per share......
Average common shareholders' equity.....
Total assets.....
Total Liabilities...
Accumulated Other Comprehensive Income.....
100,000
$2.50
10,000,000
$22,500,000
$11,675,000
$185,000
Instructions
Calculate the Return on shareholders' equity (use up to 2 decimal places and do not include a % sign)
Chapter 12 Solutions
Financial Accounting (12th Edition) (What's New in Accounting)
Ch. 12 - Prob. 1QCCh. 12 - Prob. 2QCCh. 12 - Prob. 3QCCh. 12 - Prob. 4QCCh. 12 - Expressing accounts receivable as a percentage of...Ch. 12 - Kincaid Company reported the following data (in...Ch. 12 - Prob. 7QCCh. 12 - Ratios that measure liquidity include all of the...Ch. 12 - Verba Corporation has an inventory turnover of 15...Ch. 12 - The measure of a companys ability to collect cash...
Ch. 12 - A ratio that measures a companys profitability is...Ch. 12 - Prob. 12QCCh. 12 - Prob. 13QCCh. 12 - Prob. 14QCCh. 12 - Prob. 12.1ECCh. 12 - Prob. 12.1SCh. 12 - Prob. 12.2SCh. 12 - Prob. 12.3SCh. 12 - Prob. 12.4SCh. 12 - Prob. 12.5SCh. 12 - (Learning Objective 4: Evaluate a companys quick...Ch. 12 - Prob. 12.7SCh. 12 - (Learning Objective 4: Measure ability to pay...Ch. 12 - (Learning Objective 4: Measure profitability using...Ch. 12 - Prob. 12.10SCh. 12 - (Learning Objective 4: Use ratio data to...Ch. 12 - Prob. 12.12SCh. 12 - (Learning Objective 4: Analyze a company based on...Ch. 12 - Prob. 12.14SCh. 12 - Prob. 12.15SCh. 12 - Prob. 12.16AECh. 12 - Prob. 12.17AECh. 12 - Prob. 12.18AECh. 12 - Prob. 12.19AECh. 12 - Prob. 12.20AECh. 12 - Prob. 12.21AECh. 12 - Prob. 12.22AECh. 12 - Prob. 12.23AECh. 12 - Prob. 12.24AECh. 12 - Prob. 12.25AECh. 12 - Prob. 12.26AECh. 12 - Prob. 12.27BECh. 12 - Prob. 12.28BECh. 12 - Prob. 12.29BECh. 12 - Prob. 12.30BECh. 12 - Prob. 12.31BECh. 12 - LO 4 (Learning Objective 4: Calculate ratios;...Ch. 12 - Prob. 12.33BECh. 12 - Prob. 12.34BECh. 12 - Prob. 12.35BECh. 12 - Prob. 12.36BECh. 12 - Prob. 12.37BECh. 12 - Prob. 12.38QCh. 12 - Prob. 12.39QCh. 12 - Prob. 12.40QCh. 12 - Prob. 12.41QCh. 12 - Prob. 12.42QCh. 12 - Prob. 12.43QCh. 12 - Prob. 12.44QCh. 12 - Use the Orlando Medical Corporation financial...Ch. 12 - Prob. 12.46QCh. 12 - Use the Orlando Medical Corporation financial...Ch. 12 - Prob. 12.48QCh. 12 - Prob. 12.49QCh. 12 - Prob. 12.50QCh. 12 - Prob. 12.51QCh. 12 - Prob. 12.52QCh. 12 - Prob. 12.53QCh. 12 - Prob. 12.54QCh. 12 - Prob. 12.55QCh. 12 - LO 1, 2, 4 (Learning Objectives 1, 2, 4: Calculate...Ch. 12 - Prob. 12.57APCh. 12 - Prob. 12.58APCh. 12 - LO 4 (Learning Objective 4: Use ratios to evaluate...Ch. 12 - Prob. 12.60APCh. 12 - LO 2, 4, 5 (Learning Objectives 2, 4, 5: Analyze...Ch. 12 - Group B LO 1, 2, 4 (Learning Objectives 1, 2, 4:...Ch. 12 - Prob. 12.63BPCh. 12 - Prob. 12.64BPCh. 12 - LO 4 (Learning Objective 4: Use ratios to evaluate...Ch. 12 - Prob. 12.66BPCh. 12 - LO 2, 4, 5 (Learning Objectives 2, 4, 5: Analyze...Ch. 12 - Prob. 12.68CEPCh. 12 - Prob. 12.69CEPCh. 12 - (Learning Objectives 2, 3.4: Use trend...Ch. 12 - (Learning Objectives 4, 5: Calculate and analyze...Ch. 12 - Prob. 12.72DCCh. 12 - Prob. 12.73DCCh. 12 - Prob. 12.74EICCh. 12 - Focus on Financials Apple Inc. LO 1, 2, 3, 4, 5...Ch. 12 - Comprehensive Financial Statement Analysis Project...
Knowledge Booster
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
- The following data relate to Schroeder Ltd. for the calendar year 2020: Net income (30% tax rate) ...................................$3,250,000 Average number of common shares outstanding during 2020..................................1,200,000shares 8%, cumulative convertible preferred shares: convertible into 90,000 common shares ............$1,800,000 6% convertible bonds; convertible into 60,000 common shares ..............................................$2,000,000 Stock options, exercisable at $30 per share ............ 105,000 shares All the convertible securities and stock options were outstanding all year. The average market price of the common shares in 2020 was $35. Instructions Calculate: a. basic earnings per share b. diluted earnings per share.arrow_forwardExamine the following selected financial information for Best Value Corporation and Modern Stores, Inc., as of the end of their fiscal years ending in 2018: Data table (In millions) Best Value Corporation Modern Stores, Inc. 1. Total assets. . . . . . . . . . . . . . . . . . . . . . . . . . $15,256 $203,110 2. Total common stockholders' equity. . . . . $3,075 $71,460 3. Operating income. . . . . . . . . . . . . . . . . . . . $1,350 $26,820 4. Interest expense. . . . . . . . . . . . . . . . . . . . . . $88 $2,020 5. Leverage ratio. . . . . . . . . . . . . . . . . . . . . . . . 6. Total debt. . . . . . . . . . . . . . . . . . . . . . . . . . . . 7. Debt ratio. . . . . . . . . . . . . . . . . . . . . . . . . . . . 8. Times interest earned. . . . . . . . . . . . . . . . . Requirements…arrow_forwardUse the following information for Questions 9–10.Porter Co. reported the following on its December 31, 2013, balance sheet: Liabilities and Stockholders’ Equity:Accounts payable . . . . . . . . . . . . . . . . . . . . $ 3,000Notes payable. . . . . . . . . . . . . . . . . . . . . . . 22,000Bonds payable . . . . . . . . . . . . . . . . . . . . . . 45,000Common stock . . . . . . . . . . . . . . . . . . . . . . 110,000Preferred stock . . . . . . . . . . . . . . . . . . . . . . 20,000Additional paid-in capital . . . . . . . . . . . . . . . 70,000Retained earnings . . . . . . . . . . . . . . . . . . . . 32,000Treasury stock. . . . . . . . . . . . . . . . . . . . . . . 12,000 9. The debt/equity ratio for Porter Co. in 2013 (rounded) isa. 20.5%b. 24.1%c. 28.7%d. 31.8%10. The debt ratio for Porter Co. in 2013 (rounded) isa. 20.5%b. 24.1%c. 28.7%d. 31.8%arrow_forward
- The year-end balance sheet of Social Systems, Inc. includes the following stockholders’ equity section (with certain details omitted): Stockholders’ equity: 8% cumulative preferred stock, $100 par value, callable at $104, 100,000 shares authorized................................................. $3,200,000 Common stock, $3 par value, 1,000,000 shares authorized................................................................................................. 1,200,000 Additional paid-in capital: Common stock........................................................ 2,800,000 Donated capital............................................................................................... 610,000 Retained earnings............................................................................................ 3,470,000 Total stockholders’…arrow_forwardSelected information from the 2014 and 2013 financial statements of Sculley Corporation is presented below: (in thousands) As of December 31 2014 2013 Cash ................................... $ 21 $ 35 Marketable securities (current) ........... 27 22 Accounts receivable (net) .... 60 98 Inventory ............................ 105 142 Prepaid expenses ................. 5 3 Land and building (net) ......... 247 315 Accounts payable ................ 57 75 Accrued expenses ............... 10 14 Notes payable (short-term) ... 8 4 Bonds payable ..................... 52 66 (in thousands) As of December 31 2014 2013 Cash sales ........................... $750 $675 Credit sales (% of cash sales) ....... 82% 85% Cost of goods sold (percent…arrow_forwardSelected information from the 2014 and 2013 financial statements of Sculley Corporation is presented below: (in thousands) As of December 31 2014 2013 Cash ................................... $ 21 $ 35 Marketable securities (current) ........... 27 22 Accounts receivable (net) .... 60 98 Inventory ............................ 105 142 Prepaid expenses ................. 5 3 Land and building (net) ......... 247 315 Accounts payable ................ 57 75 Accrued expenses ............... 10 14 Notes payable (short-term) ... 8 4 Bonds payable ..................... 52 66 (in thousands) As of December 31 2014 2013 Cash sales ........................... $750 $675 Credit sales (% of cash sales) ....... 82% 85% Cost of goods sold (percent…arrow_forward
- The comparative financial statements of Marshall Inc. are as follows. The market price of Marshall common stock was $82.60 on December 31, 20Y2.Marshall Inc. Comparative Retained Earnings Statement For the Years Ended December 31, 20Y2 and 20Y120Y220Y1Retained earnings, January 1.........................................$3,704,000$3,264,000Net income ......................................................... 600,000 550,000Total ...............................................................$4,304,000$3,814,000Dividends:On preferred stock ...............................................$ 10,000$ 10,000On common stock................................................100,000 100,000Total dividends ...............................................$ 110,000$ 110,000Retained earnings, December 31 .....................................$4,194,000$3,704,000Marshall Inc.Comparative Income StatementFor the Years Ended December 31, 20Y2 and 20Y120Y220Y1Sales…arrow_forwardUsing a BalanceSheetMOON CORPORATIONBALANCE SHEETJULY 31, 2011Assets Liabilities & Owners’ EquityCash . . . . . . . . . . . . . . . . $ 18,000 Liabilities:Accounts Receivable . . . 26,000 Notes PayableLand . . . . . . . . . . . . . . . . 37,200 (due in 60 days) . . . . . . . . . . . . . $ 12,400Building. . . . . . . . . . . . . . 38,000 Accounts Payable . . . . . . . . . . . . . 9,600Office Equipment . . . . . . 1,200 Total liabilities . . . . . . . . . . . . . . $ 22,000Stockholders’ equity:Capital Stock . . . . . . . . . $60,000Retained Earnings. . . . . 38,400 98,400Total . . . . . . . . . . . . . . . . $120,400 Total . . . . . . . . . . . . . . . . . . . . . . . . . $120,400STAR CORPORATIONBALANCE SHEETJULY 31, 2011Assets Liabilities & Owners’ EquityCash . . . . . . . . . . . . . . . . $ 4,800 Liabilities:Accounts Receivable . . . 9,600 Notes PayableLand . . . . . . . . . . . . . . . . 96,000 (due in 60 days) . . . . . . . . . . . . . $ 22,400Building. . . . . . . . . . . .…arrow_forwardAt the beginning of 2018, Thompson Service, Inc., showed the following amounts in the stock-holders' equity section of its balance sheet. Stockholders' equity:Capital stock, $1 par value, 500,000 shares authorized,382,000 issued and outstanding……………………………….. $382,000Additional paid-in capital: capital stock………………………. 4,202,000 Total paid-in capital………………………………………… $4.584,000 Retained earnings……………………………………………... 2.704,600Total stockholders' equity…………………………………….. $7,288,600The transactions relating to stockholders' equity during the year are as follows. Jan.3 Declared a dividend of $1 per share to stockholders of record on January 31,payable on February 15Feb. 15 Paid the cash dividend declared on January 3. Apr. 12 The corporation purchased 6,000 shares of its own capital stock at a price of$40 per share. May 9 Reissued 4,000 shares of the treasury stock at a price of $44 per share. June1 Declared a 5 percent stock dividend to stockholders of record at June…arrow_forward
- AUDITING RETAINED EARNINGS AND DIVIDENDS The accounts from the shareholders' equity section of the balance sheet of Western Company showed the following at December 31, 2020: Ordinary share ..........................................P 475,000 Share Premium ..........................................6,650,000 Retained Earnings .....................................787,500 Western issued 475,000 shares of the P1 par value Ordinary share on January 1, 2020. The company also is authorized to issue 500,000 shares of P5 par value, 6% preference share. During 2021, Western had the following transactions: Jan. 10 Issued an additional 90,000 shares of Ordinary Share at P17 per share. Apr. 1 Issued 100,000 shares of preference share at P8 per share. July 19 The board of directors authorized the appropriation of P295,000 of retained earnings for the purchase of equipment. Oct. 23 Sold an additional 60,000 shares of preference share at P9 per share. Dec. 31 Net income for the year was…arrow_forwardAdditional information: 1. The market price of Pina’s common stock was $7.00, $7.50, and $8.50 for 2020, 2021, and 2022, respectively. 2. You must compute dividends paid. All dividends were paid in cash. Compute the following ratios for 2021 and 2022. 2022 2021 Profit margin enter percentages % enter percentages % (Round answers to 1 decimal place, e.g. 1.5%.) Gross profit rate enter percentages % enter percentages % (Round answers to 1 decimal place, e.g. 1.5%.) Asset turnover enter asset turnover in times times enter asset turnover in times times (Round answers to 2 decimal places, e.g. 1.83.) Earnings per share $enter earnings per share in dollars $enter earnings per share in dollars (Round answers to 2 decimal places, e.g. 1.83.) Price-earnings ratio enter price-earnings ratio in times times enter price-earnings ratio in times times (Round answers to 1 decimal place,…arrow_forward
arrow_back_ios
arrow_forward_ios
Recommended textbooks for you
- AccountingAccountingISBN:9781337272094Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.Publisher:Cengage Learning,Accounting Information SystemsAccountingISBN:9781337619202Author:Hall, James A.Publisher:Cengage Learning,
- Horngren's Cost Accounting: A Managerial Emphasis...AccountingISBN:9780134475585Author:Srikant M. Datar, Madhav V. RajanPublisher:PEARSONIntermediate AccountingAccountingISBN:9781259722660Author:J. David Spiceland, Mark W. Nelson, Wayne M ThomasPublisher:McGraw-Hill EducationFinancial and Managerial AccountingAccountingISBN:9781259726705Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting PrinciplesPublisher:McGraw-Hill Education
Accounting
Accounting
ISBN:9781337272094
Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:Cengage Learning,
Accounting Information Systems
Accounting
ISBN:9781337619202
Author:Hall, James A.
Publisher:Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis...
Accounting
ISBN:9780134475585
Author:Srikant M. Datar, Madhav V. Rajan
Publisher:PEARSON
Intermediate Accounting
Accounting
ISBN:9781259722660
Author:J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:9781259726705
Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:McGraw-Hill Education
Financial ratio analysis; Author: The Finance Storyteller;https://www.youtube.com/watch?v=MTq7HuvoGck;License: Standard Youtube License