(b)Calculate basic earnings per share. (For simplicity, ignore the requirement to record the debt and equity portions of theconvertible bond separately). (Round answer to 2 decimal places, e.g. 15.25.)Basic EPSeTextbook and MediaSave for LaterAttempts: 0 of 3 used Submit Answer Bonita Inc. had 502,000 common shares outstanding for the entire fiscal year ended August 31, 2023. Bonita also had 106,000 $3cumulative, no-par value preferred shares outstanding for the full year. Options were written at the start of the fiscal year to purchase30,000 common shares at $17 per share. The average market price of Bonita's common shares during the year ended August 31, 2023was $25 per share. The options expire in 2032, and none were actually exercised during the current year. Also outstanding for theentire year was a 7% bond with a face value of $4,600,000, convertible to 115,000 common shares. Bonita Inc.'s net income for theyear was $2,702,500, and the income tax rate for the fiscal year was 40%.(a)Your answer is correct.Calculate the income effect of the dividends on the preferred shares.Dividends on preferred shareseTextbook and MediaLA318000Attempts: 1 of 3 used

Basic earnings per share (EPS) is a rough measurement of the amount of a company's profit that can…

Answered: Calculate basic earnings per share.…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Assets Cash Receivables (net) Inventory PP & E (net) Patents&Licenses Goodwill Total assets Liabilities & Equity Accounts payable Short term debt Long term debt Preferred stock Common Equity Total Liabilities + Equity New Chip Corp Balance Sheet at 12/31/22 ($ in Millions) 31 45 64 215 28 19 402 53 19 179 23 128 402
Ma3. Please give only typed answer. [Checkbox: 1, 2, 3, or 4 options may be needed to form the correct answer]. Which of the following is a formula for a financial ratio? 1) earnings before interest and taxes / interest expense 2) (cash + marketable securities + A/R)/ current liabilities 3) average age of inventory/accounts payable period 4) (total shareholder equity-preferred stock) / shares outstanding
Problem: Module 3 Textbook Problem 7 Learning Objective: 3-7 Using the straight-line method show how bonds issued at a premium affect financial statements The Square Foot Grill, Inc. issued $185,000 of 10-year, 7 percent bonds on January 1, Year 1, at 102. interest is payable in cash annually on December 31. The straight-line method is used for amortization.
Which of the following is an example of long term instruments? (select all that apply) a. Asset backed securities b. Commercial paper С. Repo d. Treasury bill
Carter Paint Company has plants in four provinces. Sales last year were $100 million, and the balance sheet at year-end is similar in percent of sales to that of previous years (and this will continue in the future). All assets and current liabilities will vary directly with sales. Assume the firm is already using capital assets at full capacity. Cash Accounts receivable. Inventory Current assets Capital assets Assets Total assets $9 15 10 34 34 $68 Balance Sheet (in $ millions) Liabilities and Shareholders' Equity Accounts payable Accrued vages Accrued taxes Current liabilities. Long-term debt Common stock Retained earnings Total liabilities and shareholders' equity $9 8 7 24 10 15 19 $68 The firm has an aftertax profit margin of 8 percent and a dividend payout ratio of 40 percent. a. If sales grow by 20 percent next year, determine how many dollars of new funds are needed to finance the expansion. (Do not round intermediate calculations. Enter the answer in millions. Round the final…
Choose the correct classification for the following accounts: A forfeited shares account; A forfeited shares reserve: 1. Liability Asset2. Income Equity3. Expense Liability5. Asset Income5. Liability Equity a. 1 b. 2 c. 3 d. 4 e. 5
Effect of transactions on various financial ratios Indicate the effect that eachtransaction/event listed here will have on the financial ratio listed opposite it, and provide an explanation for your answer. Use 1 for increase, − for decrease, and (NE) for no effect. Assume that current assets exceed current liabilities in all cases, bothbefore and after the transaction/event.Transaction/Event Financial Ratioa. Split the common stock 2 for 1.b. Collected accounts receivable.c. Issued common stock for cash.d. Sold treasury stock.e. Accrued interest on a note receivable.f. Sold inventory on account.g. Wrote off an uncollectible account.h. Declared a cash dividend.i. Incurred operating expenses.j. Sold equipment at a loss.Book value per share of common stockNumber of days’ sales in accounts receivableTotal asset turnoverReturn on equityCurrent ratioAcid-test ratioAccounts receivable turnoverDividend yieldMarginEarnings per share
current Attempt in Progress The following data were taken from the balance sheet accounts of Wildhorse Corporation on December 31, 2024. Current assets Debt investments (trading) Common stock (par value $10) Paid-in capital in excess of par Retained earnings a. b. C. No. Prepare the required journal entries for the following unrelated items. (List all debit entries before credit entries. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter o for the amounts. Record entries in the order displayed in the problem statement.) a. (1) $513,000 605,000 Date 501,000 144,000 910,000 A 6% stock dividend is (1) declared and (2) distributed at a time when the market price per share is $40. The par value of the common stock is reduced to $2 with a 5-for-1 stock split. A dividend is declared January 5, 2025, and paid January 25, 2025, in bonds held as an investment. The bonds…
The following data were taken from the balance sheet accounts of Sage Corporation on December 31, 2019. Current assets $509,000 Debt investments (trading) 678,000 Common stock (par value $10) 530,000 Paid-in capital in excess of par 155,000 Retained earnings 922,000 Prepare the required journal entries for the following unrelated items. (Credit account titles are automatically indented when amount is entered. Do not indent manualiy. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) (a) A 4% stock dividend is (1) declared and (2) distributed at a time when the market price per share is $38. (b) The par value of the common stock is reduced to $2 with a 5-for-1 stock split. (c) A dividend is declared January 5, 2020, and paid January 25, 2020, in bonds held as an investment. The bonds have a book value of $107,000 and a fair value of $132,000.
In the balance sheet, the account Discount on Bonds Payable is Group of answer choices added to bonds payable deducted from bonds payable classified as a stockholders equity account classified as an asset
In the blank space beside each numbered balance sheet item, enter the letter of its balance sheet classification. If the item should not appear on the balance sheet, enter a Z in the blank. A. Current assets E. Current liabilities B. Long-term investments F. Long-term liabilities C. Plant assets G. Equity D. Intangible assets 1. Commissions earned 2. Interest receivable 3. Long-term investment in stock 4. Prepaid insurance (4 months of rent) 5. Machinery 6. Notes payable (due in 15 years) 7. Copyrights 8. Current portion of long-term note payable 9. Accumulated depreciation—Trucks 10. Office equipment 11. Rent receivable 12. Salaries payable 13. Income taxes payable (due in 11 weeks) 14. Owner, Capital 15. Office supplies 16. Interest payable 17. Rent revenue 18. Notes receivable (due in 120 days) 19. Land (used in operations) 20. Depreciation expense—Trucks

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Calculate basic earnings per share. (For simplicity, ignore the requirement to record the debt and equity portions of the convertible bond separately). (Round answer to 2 decimal places, e.g. 15.25.) Basic EPS $