If net income is $126,000 and preferred dividends are $10,000 for Year 2, what is the earnings per share on common stock for Year 2
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Year 2 | Year 1 | |
Total current assets | $600,000 | $560,000 |
Total investments | 60,000 | 40,000 |
Total property, plant, and equipment | 900,000 | 700,000 |
Total current liabilities | 150,000 | 80,000 |
Total long-term liabilities | 350,000 | 250,000 |
100,000 | 100,000 | |
Common stock, $10 par | 602,000 | 602,000 |
Paid-in capital in excess of par—common stock | 62,000 | 62,000 |
326,000 | 213,000 |
If net income is $126,000 and preferred dividends are $10,000 for Year 2, what is the earnings per share on common stock for Year 2? (Round to two decimal places.)
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- The balance sheets at the end of each of the first two years of operations indicate the following: 2012 2011Total current assets $600,000 $560,000Total investments 60,000 40,000Total property, plant, and equipment 900,000 700,000Total current liabilities 125,000 65,000Total long-term liabilities 350,000 250,000Preferred 9% stock, $100 par 100,000 100,000Common stock, $10 par 600,000 600,000Paid-in capital in excess of par-common stock 75,000 75,000Retained earnings 310,000…Question 30. The balance sheets at the end of each of the first two years of operations indicate the following:2007 2006Total current assets $250,000 $225,000Total investments 50,000 25,000Total fixed assets 450,000 300,000Total current liabilities 100,000 37,500Total long-term liabilities 200,000 112,500Preferred 9% stock, $100 par 50,000 50,000Common stock, $10 par 250,000 250,000Paid-in capital in excess of par-common stock 25,000 25,000Retained earnings 125,000 125,000If net income is $50,000 and interest expense is $20,000 for 2007, what are the earnings per share on common stock for 2007?a. $1.82b. $2.00c. $2.80d. $1.20Problems:31. On August 1, Clayton Co. issued $1,300,000 of 20-year, 9% bonds, dated August 1, for $1,225,000. Interest is payable semiannually on February 1 and August 1. Present the entries to record the following transactions for the current year (a) Issuance of the bonds.(b) Accrual of interest and amortization of bond discount for the year, on December 31,…The following data are taken from the financial statements: Current Year Preceding Year Current assets $745,000 $820,000 Property, plant, and equipment 1,510,000 1,400,000 Current liabilities (non-interest-bearing) 160,000 140,000 Long-term liabilities, 12% 400,000 400,000 Preferred 10% stock 250,000 250,000 Common stock, $25 par 1,200,000 1,200,000 Retained earnings, beginning of year 230,000 160,000 Net income for year 110,000 155,000 Preferred dividends declared (25,000) (25,000) Common dividends declared (70,000) (60,000) Determine for the current year:(a) Return on total assets(b) Return on stockholders' equity(c) Return on common stockholders' equity(d) Earnings per share on common stock(e) Price-earnings ratio on common stock(f) Dividend yield. The current market price per share of common stock is $25. Round your answers to one decimal place except earnings per share, which should be rounded to the nearest cent. a. Return on total…
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- Balance Sheet for Dex Company and Ed Company on December 31, 2023 are as follows: Dex Company Ed Company Cash P850,000 P75,000 Other Assets 2,200,000 425,000 Total Assets P3,050,000 P500,000 Liabilities P1,200,000 P100,000 Common Stock, P50 par 2,000,000 - Common Stock, P10 par - 250,000 Additional Paid-in Capital 500,000 - Retained Earnings (600,000) 150,000 Total Liabilities and Equity P3,050,000 P500,000 On this date, Dex Company acquired 80% of the stock of Ed Company. Instructions: Prepare a consolidated balance sheet and the eliminating entries as of December 31, 2023, under each set of conditions listed below. Subsidiary stock is acquired for cash of P350,000. The difference between the investment balance and the book value of the interest acquired is regarded as evidence of goodwill identified with the subsidiary company.Balance Sheet for Dex Company and Ed Company on December 31, 2023 are as follows: Dex Company Ed Company Cash P850,000 P75,000 Other Assets 2,200,000 425,000 Total Assets P3,050,000 P500,000 Liabilities P1,200,000 P100,000 Common Stock, P50 par 2,000,000 - Common Stock, P10 par - 250,000 Additional Paid-in Capital 500,000 - Retained Earnings (600,000) 150,000 Total Liabilities and Equity P3,050,000 P500,000 On this date, Dex Company acquired 80% of the stock of Ed Company. Instructions: Prepare a consolidated balance sheet and the eliminating entries as of December 31, 2023, under each set of conditions listed below. Subsidiary stock is acquired by exchanging 5,000 shares of Dex Company stock. The investment is recorded at the par value of the stocks issued.The following selected data were taken from the financial statements of the Winter Group for the 3 most recent years of operations: Total assets Notes payable (10% interest) Common stock Preferred $6 stock, $100 par Retained earnings Dec. 31. Year 3 Dec.31, Year 2 Dec. 31, Year 1 $3,000,000 $2,700,000 $2,400,000 1,000,000 1,000,000 1,000,000 400,000 400,000 400,000 200,000 200,000 200,000 1,126,000 896,000 600,000 The Year 3 net income was $262,000, and the Year 2 net income was $348,000. No dividends on common stock were declared during the 3 years. (a) Determine the return on total assets, the return on stockholders' equity, and the return on common stockholders' equity for Years 2 and 3. Round to one decimal place. (b) What conclusions can be drawn from these data as to the company's profitability?