On January 1, 2025, Teal Industries had stock outstanding as follows:8% Noncumulative preferred stock, $100 par value, issued and outstanding 242,000 sharesCommon stock, $1 par value, issued and outstanding 621,000 sharesDate of AcquisitionMicroBio February 1, 2025BioTech June 1, 2025To acquire the net assets of three smaller companies, Teal issued an additional 591,000 common shares. The acquisitions took place asfollows.SuperBio November 1, 2025Shares Issued213,000Earnings per share $84,000$24,200,000294,000621,000On December 31, 2025, Teal reported net income of $9,349,000 before taxes. No dividends on the common or preferred stock weredeclared during 2025.Assuming a 40% tax rate, compute the earnings per share data that should appear on the financial statements of Teal Industries as ofDecember 31, 2025. (Round answer to 2 decimal places, e.g. 2.55.)

Earning Per Share EPS refers to the per share earnings of the company's available to the common…

Answered: On January 1, 2025, Teal Industries had…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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On January 1, 2025, Pharoah Industries had stock outstanding as follows. 6% Cumulative preferred stock, $100 par value, issued and outstanding 10,300 shares $1,030,000 Common stock, $10 par value, issued and outstanding 188,000 shares 1,880,000 To acquire the net assets of three smaller companies, Pharoah authorized the issuance of an additional 162,000 common shares. The acquisitions took place as shown below. Date of Acquisition Shares Issued Company A April 1, 2025 50,400 Company B July 1, 2025 80, 400 Company C October 1, 2025 31, 200 On May 14, 2025, Pharoah realized a $88,800 (before taxes) gain on discontinued operations. On December 31, 2025, Pharoah recorded income of $285, 600 from continuing operations. Assuming a 20% tax rate, compute the basic earnings per share data that should appear on the financial statements of Pharoah Industries as of December 31, 2025. (Round answers to 2 decimal places, e.g. 2.55.)
On January 1, 2025, Blossom Industries had stock outstanding as follows. 6% Cumulative preferred stock, $100 par value, issued and outstanding 9,700 shares Common stock, $10 par value, issued and outstanding 200,000 shares Date of Acquisition Company A April 1, 2025 Company B July 1, 2025 Company C October 1, 2025 To acquire the net assets of three smaller companies, Blossom authorized the issuance of an additional 157,200 common shares. The acquisitions took place as shown below. Shares Issued 48,000 78,000 31,200 $970,000 On May 14, 2025, Blossom realized a $92,400 (before taxes) gain on discontinued operations. On December 31, 2025, Blossom recorded income of $291,600 from continuing operations. BLOSSOM INDUSTRIES Income Statement 2,000,000 Assuming a 20% tax rate, compute the basic earnings per share data that should appear on the financial statements of Blossom Industries as of December 31, 2025. (Round answers to 2 decimal places, e.g. 2.55.) $ $
On January 1, 2020, Metlock Industries had stock outstanding as follows. 6% Cumulative preferred stock, $ 100 par value, issued and outstanding 10,800 shares $ 1,080,000 Common stock, $ 10 par value, issued and outstanding 194,000 shares 1,940,000 To acquire the net assets of three smaller companies, Metlock authorized the issuance of an additional 160,800 common shares. The acquisitions took place as shown below. Date of Acquisition Shares Issued Company A April 1, 2020 51,600 Company B July 1, 2020 78,000 Company C October 1, 2020 31,200 On May 14, 2020, Metlock realized a $ 91,200 (before taxes) insurance gain on discontinued operations. On December 31, 2020, Metlock recorded income of $ 330,000 from continuing operations (after tax).Assuming a 20% tax rate, compute the earnings per share data that should appear on the financial statements of Metlock Industries as of December 31, 2020. (Round answer to 2 decimal places, e.g. $2.55.)…
On January 1, 2020, Vaughn Industries had stock outstanding as follows. 6% Cumulative preferred stock, $100 par value, issued and outstanding 9,200 shares $920,000 Common stock, $10 par value, issued and issued and outstanding 205,000 shares To acquire the net assets of three smaller companies, Vaughn authorized the issuance of an additional 162,000 common shares. The acquisition took place as shown below. Company A April 1, 2020. 51,600 shares issued Company B July 1, 2020. 80,400 shares issued Company C October 1, 2020. 30,000 shares issued On May 14, 2020, Vaughn realized a $87,600 (before taxes) insurance gain on discontinued operations. On December 31, 2020, Vaughn recorded income of $303,600 from continuing operations (after tax). Assuming a 20% tax rate, compute the earnings per share data that should appear on the financial statements of Vaughn Industries as of December 31, 2020 (Round answer to 2 decimal places)
On January 1, 2020, Teal Industries had stock outstanding as follows. 8% Noncumulative preferred stock, $100 par value, issued and outstanding 231,000 shares $23,100,000 Common stock, $1 par value, issued and outstanding 633,000 shares 633,000 To acquire the net assets of three smaller companies, Teal issued an additional 600,000 common shares. The acquisitions took place as follows. Date of Acquisition Shares Issued MicroBio February 1, 2020 192,000 BioTech June 1, 2020 78,000 SuperBio November 1, 2020 330,000 On December 31, 2020, Teal reported net income of $10,520,000 before taxes. No dividends on the common or preferred stock were declared during 2020.Assuming a 40% tax rate, compute the earnings per share data that should appear on the financial statements of Teal Industries as of December 31, 2020. (Round answer to 2 decimal places, e.g. 2.55.) Earnings per share $enter the earnings per share in dollar rounded to 2 decimal…
On January 1, 2020, Blossom Limited had shares outstanding as follows: 5% cumulative preferred shares, $100 par value, 10,900 shares issued and outstanding $1,090,000 Common shares, 207,000 shares issued and outstanding 2,070,000 To acquire the net assets of three smaller companies, the company authorized the issuance of an additional 308,000 common shares. The acquisitions were as follows: Date of Acquisition Shares Issued Company A: April 1, 2020 168,000 Company B: July 1, 2020 85,000 Company C: October 1, 2020 55,000 On May 14, 2020, Blossom realized a $95,000 gain (before tax) on a discontinued operation from a business segment that had originally been purchased in 2000.On December 31, 2020, the company recorded income of $660,000 before tax, not including the discontinued operation gain. Blossom has a 40% tax rate. Calculate the earnings per share for 2020 as it should be reported to shareholders. (Round answer to 2 decimal…
On January 1, 2020, Stellar Industries had stock outstanding as follows. 6% Cumulative preferred stock, $100 par value, issued and outstanding 9,300 shares $930,000 Common stock, $10 par value, issued and outstanding 220,000 shares 2,200,000 To acquire the net assets of three smaller companies, Stellar authorized the issuance of an additional 160,800 common shares. The acquisitions took place as shown below. Date of Acquisition Shares Issued Company A April 1, 2020 48,000 Company B July 1, 2020 82,800 Company C October 1, 2020 30,000 On May 14, 2020, Stellar realized a $93,600 (before taxes) insurance gain on discontinued operations. On December 31, 2020, Stellar recorded income of $282,000 from continuing operations (after tax).Assuming a 20% tax rate, compute the earnings per share data that should appear on the financial statements of Stellar Industries as of December 31, 2020. Stellar IndustriesIncome Statement…
On January 1, 2020, Stellar Industries had stock outstanding as follows. 6% Cumulative preferred stock, $100 par value, issued and outstanding 9,300 shares $930,000 Common stock, $10 par value, issued and outstanding 220,000 shares 2,200,000 To acquire the net assets of three smaller companies, Stellar authorized the issuance of an additional 160,800 common shares. The acquisitions took place as shown below. Date of Acquisition Shares Issued Company A April 1, 2020 48,000 Company B July 1, 2020 82,800 Company C October 1, 2020 30,000 On May 14, 2020, Stellar realized a $93,600 (before taxes) insurance gain on discontinued operations. On December 31, 2020, Stellar recorded income of $282,000 from continuing operations (after tax).Assuming a 20% tax rate, compute the earnings per share data that should appear on the financial statements of Stellar Industries as of December 31, 2020. (Round answer to 2 decimal places, e.g. $2.55.)
On January 1, 2019, Bailey Industries had shares outstanding as follows.6% cumulative preference shares, €100 par value, issued and outstanding 10,000 shares €1,000,000Ordinary shares €10 par value, issued and outstanding 200,000 shares 2,000,000To acquire the net assets of three smaller companies, Bailey authorized the issuance of an additional 170,000 ordinary shares. The acquisitions took place as shown below.Date of Acquisition Shares IssuedCompany A: April 1, 2019, 60,000Company B: July 1, 2019, 80,000Company C: October 1, 2019 30,000On May 14, 2019, Bailey realized a €90,000 (before taxes) gain from discontinued operations. On December 31, 2019, Bailey recorded net income of €300,000 before tax and exclusive of the gain.InstructionsAssuming a 40% tax rate, compute the earnings per share data that should appear on the financial statements of Bailey Industries as of December 31, 2019
On January 1, 2020, Splish Industries had stock outstanding as follows. 6% Cumulative preferred stock, $100 par value, issued and outstanding 9,600 shares $960,000 Common stock, $10 par value, issued and outstanding 181,000 shares 1,810,000 To acquire the net assets of three smaller companies, Splish authorized the issuance of an additional 159,600 common shares. The acquisitions took place as shown below. Date of Acquisition Shares Issued Company A April 1, 2020 49,200 Company B July 1, 2020 79,200 Company C October 1, 2020 31,200 On May 14, 2020, Splish realized a $90,000 (before taxes) insurance gain on discontinued operations. On December 31, 2020, Splish recorded income of $312,000 from continuing operations (after tax).Assuming a 20% tax rate, compute the earnings per share data that should appear on the financial statements of Splish Industries as of December 31, 2020. (Round answer to 2 decimal places, e.g. $2.55.) Splish Industries Income…
On January 1, 2020, Lennon Industries had stock outstanding as follows. 6% Cumulative preferred stock, $100 par value, issued and outstanding 10,000 shares $1,000,000 Common stock, $10 par value, issued and outstanding 200,000 shares 2,000,000 To acquire the net assets of three smaller companies, Lennon authorized the issuance of an additional 160,000 common shares. The acquisitions took place as shown below. Date of Acquisition Shares Issued Company A April 1, 2020 50,000 Company B July 1, 2020 80,000 Company C October 1, 2020 30,000 On May 14, 2020, Lennon realized a $90,000 (before taxes) gain on discontinued operations. On December 31, 2020, Lennon recorded income of $300,000 from continuing operations. Instructions Assuming a 20% tax rate, compute the earnings per share data that should appear on the financial statements of Lennon Industries as of December 31, 2020.
On January 1, 2015, Pub Corporation made a significant acquisition, purchasing 75 percent of SubCorporation's outstanding voting stock for a total of $4,200,000. Sub Corporation's stockholders'equity at that time was made up of the following components (all values in thousands):Capital stock with a par value of $10: $2,000Additional paid-in capital: $1200Retained earnings as of December 31, 2014: $1500Total stockholders' equity: $4700The surplus fair value of the net assets obtained from this acquisition was allocated as follows: 10percent to underappreciated inventory (which was subsequently sold in 2015), 40 percent tounderappreciated plant assets with a remaining useful life of eight years, and the remaining 50 percentto goodwill.Fast forward to December 31, 2019, and we have the comparative trial balances for both PubCorporation and Sub Corporation. Pub SubOther assets—net $5,845 $4500Investment in Sub—75% 3,640 —Expenses (including cost of sales) 5,285 800Dividends 600 300 $15370…

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