3. Aero Corp. provides the following data for 20x1. Transactions in common stock: 1/1, beginning 4/1, issuance 6% $100 par convertible cumulative preferred stock $200,000 Issued at $210,000, convertible into 20,000 shares Stock options Option price $25 60,000 shares Average market price Year-end market price $40 300,000 shares 100,000 shares $35 The net income for 20x1 is $2,300,000. The company's tax rate is 30 percent. No conversion or options were exercised during 20x1. 1) Compute basic earnings per share (rounded to 2 decimal places) for 20x1. Show your computations. 2) Compute diluted earnings per share (rounded to 2 decimal places) for 20x1. Show your computations
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- Grouper inc presented the following data Net income $2.740.000 Preferred stock 45.000 shares outstanding $100 par, cumulative, not convertible 4.500.000 Common stock Shares outstanding 1/1 714.000 hsued for cash S/1 291400 Acuired treaury stock for cash 1 135.400 2-for-1 stock split. 10o/1 Compute eanings per share Roundansert decimal pla.es 255) Earnings per shareWilson Corp. provides the following data for 20x1. Transactions in common stock: 1/1, beginning 300,000 shares 4/1, issuance 100,000 shares 6% $100 par convertible cumulative preferred stock $200,000 Issued at $210,000, convertible into 20,000 shares Stock options 60,000 shares Option price $25 Average market price $35 Year-end market price $40 The net income for 20x1 is $2,300,000. The company’s tax rate is 30 percent. No conversion or options were exercised during 20x1. 1) Compute basic earnings per share (rounded to 2 decimal places) for 20x1. Show your computations. 2) Compute…Skysong Inc. presented the following data. Net income Preferred stock:52,000shares outstanding, $100 par, 8% cumulative, not convertible Common stock: Shares outstanding 1/1 Issued for cash, 5/1 Acquired treasury stock for cash, 8/1 2-for-1 stock split, 10/1 Compute earnings per share.(Round answer to 2 decimal places, e.g. $2.55.) Earnings per share $ $2,470,000 5,200,000 736,800 315,600 134,400
- Wildhorse Inc. presented the following data. Net income Preferred stock:53,000shares outstanding, $100 par,8% cumulative, not convertible Common stock: Shares outstanding 1/1 Issued for cash, 5/1 Acquired treasury stock for cash, 8/1 2-for-1 stock split, 10/1 Compute earnings per share.(Round answer to 2 decimal places, e.g. $2.55.) Earnings per share $ $2,340,000 5,300,000 692,400 321,600 160,800Q11: Presented below is the information necessary to compute the net assets (stockholders' equity) and book value per share of common stock for Arora Advertising, Inc.: 8% cumulative preferred stock, $100 par (callable at $110) $300,000 Common stock, $5 par, authorized 100,000 shares 450,000 Additional paid-in capital 679,200 Deficit 130,200 Dividends in arrears on preferred stock, 1 full year 24,000 a) Compute the amount of net assets (stockholders' equity). b) Compute the book value per share of common stock.Data pertaining to Classic Corp.’s common stock are presented for the fiscalbyear ending May 31, 2012: Ordinary sharesoutstanding P 750,000 Stated value per share 15.00 Market price per share 45.00 2008 dividends paidper share 4.50 2009 dividends paidper share 7.50 Basic earnings pershare 11.25 Diluted earnings pershare 9.0 The price-earnings ratio of ordinary share of Classics Corp is:a. 3.0 times. b. 7.0 times c. 6.0 times d. 5.0 times
- The following selected data were taken from the financial statements of Vidahill Inc. for December 31, 20Y7, 20Y6, and 20Y5: December 31 20Υ7 20Y6 20Υ5 Total assets $192,000 $173,000 $154,000 Notes payable (8% interest) 60,000 60,000 60,000 Common stock 24,000 24,000 24,000 Preferred 4% stock, $100 par 12.000 12,000 12,000 (no change during year) Retained earnings 70,415 45,870 36,000 The 20Y7 net income was $25,025, and the 20Y6 net income was $10,350. No dividends on common stock were declared between 20Y5 and 20Y7. Preferred dividends were declared and paid in full in 20Y6 and 20Y7. a. Determine the return on total assets, the return on stockholders' equity, and the return on common stockholders' equity for the years 20Y6 and 20Y7. Round percentages to one decimal place. 20Y7 20Υ6 Return on total assets % Return on stockholders' equity Return on common stockholders' equity % b. The profitability ratios indicate that the company's profitability has Since the rate of return on total…Norling Corporation reports the following information: Net income Dividends on common stock Dividends on preferred stock Weighted average common shares outstanding Norling should report earnings per share of O $1.50. O $1.80 O $2.20. O $2.50. $500,000 140,000 60,000 200,000The balance sheet caption for common stock is the following: Common stock, $2 par value, 2,070,000 shares authorized, 1,310, 000 shares issued, 1,050,000 shares outstanding $? Required: a. Calculate the dollar amount that will be presented opposite this caption. b. Calculate the total amount of a cash dividend of $0.27 per share. c. What accounts for the difference between issued shares and outstanding shares? a. Amount b. Cash dividend c. Difference between issued shares and outstanding shares
- 4. The following post-closing data are provided for Amazon Company: Description 5% Cumulative (non-participating), preferred stock $10 par Common stock, $5 par Additional paid-in capital – common stock Retained earnings Treasury stock (20 shares of preferred stock at cost) December 31 YR02 YR01 $1,000 2,500 800 1,200 240 3 $1,000 2,000 600 800 0 Other information: Net Income for YR02 was $400, and Net Income for YR01 was $100. In May of YR02 the company issued 100 shares of common stock. In August of YR02 the company purchased, as treasury stock, 20 preferred shares. Preferred dividends were last declared and paid in YR00. The market price of the common stock was $20 at December 31, YR02. At December 31, YR02 the preferred stock has a market value of $11 and a liquidation value of $12. The book value per share of common stock outstanding at December 31, YR02 is (round to nearest penny): a. $7.92 b. $8.25 c. $8.44 d. $9.40 e. None of the aboveThe following selected data were taken from the financial statements of Vidahill Inc. for December 31, 20Y7, 20Y6, and 20Y5: December 31 20Y7 20Y6 20Y5 Total assets $300,000 $270,000 $240,000 Notes payable (8% interest) 100,000 100,000 100,000 Common stock 40,000 40,000 40,000 Preferred 3% stock, $100 par 20,000 20,000 20,000 (no change during year) Retained earnings 103,900 77,450 60,000 The 20Y7 net income was $27,050, and the 20Y6 net income was $18,050. No dividends on common stock were declared between 20Y5 and 20Y7. Preferred dividends were declared and paid in full in 20Y6 and 20Y7. a. Determine the return on total assets, the return on stockholders' equity, and the return on common stockholders’ equity for the years 20Y6 and 20Y7. When required, round to one decimal place. 20Y7 20Y6 Return on total assets fill in the blank 1 % fill in the blank 2 % Return on stockholders’ equity fill in the blank 3 %…Q3: Lincoln-Priest Inc., reported the following stockholder’s equity on its balance sheet at June 30th, 2020. Lincoln-Priest Inc Stockholder’s equity June 30th, 2020. Paid in Capital: Preferred stock, 7%, Rs. 40 par, 110, 000 shares authorized, none issued Rs. 0 Common stock, par value Rs 1 per share, 520,000 shares authorized, 61,000 issued 61,000 Share premium 41,000 Retained earnings 29,000 During 2020 the company completed the following transactions. Journalize each transaction. 1. Issued for cash 1300 shares of preferred stock at par value. 2. Issued for cash 2400 shares of common stock at Rs 5 per share. 3. Net Income for the year was Rs 74, 000 and the company…