INTERMEDIATE ACCOUNTING 17E - UNC CHARL
17th Edition
ISBN: 9781119631828
Author: Kieso
Publisher: WILEY
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The following data were taken from the records of Browntree Corporation at
the end of the fiscal year ending December 31, 2020:
Sales revenue
$97,700
Cost of goods sold
Gross profit
S36,160
Wages expense
$11,600
Selling and administrative expenses
Income before income tax
$13,500
Income tax rate
30%
Number of common shares outstanding
5,000
Prepare a multi-step statement of income for the company and calculate the
earnings per share. (Hint: You will need to calculate the missing amounts to
complete the statement of income.) (Round earnings per share to 2 decimal
places, e.g. 52.75,.)
BROWNTREE CORPORATION
Statement of Income
Eamings per share
Please consider the following financial numbers for Carridine Company and then prepare answers to the required questions.
Carridine Company reported a net income of $1.903 million on revenues of $55.618 million for the year 2019. Interest expense totaled $0.459 million and preferred dividends totaled $13.5 million. The average total assets for the year were $17,5 million. The income tax rate is 21%. Average preferred shareholders’ equity totaled $250 million, and average common shareholders’ equity totaled $7.5 million.
Compute the rate of return on assets (ROA) and disaggregate ROA into profit margin and assets turnover components.
Compute the rate of return on common stock equity (ROCE) and disaggregate ROCE into profit margin, assets turnover, and capital leverage ratio components.
Calculate the amount of net income to common shareholders.
In 2020, Pennington Corporation had net sales of $600,000 and cost of goods sold of $360,000. Operating expenses were $153,000, and interest expense was $7,500. The corporation’s tax rate is 30%. The corporation declared preferred dividends of $15,000 in 2020, and its average common stockholders’ equity during the year was $200,000.
Instructions
a. Prepare an income statement for Pennington Corporation.
b. Compute Pennington Corporation’s return on common stockholders’ equity for 2020.
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- Monona Company reported net income of 29,975 for 2019. During all of 2019, Monona had 1,000 shares of 10%, 100 par, nonconvertible preferred stock outstanding, on which the years dividends had been paid. At the beginning of 2019, the company had 7,000 shares of common stock outstanding. On April 2, 2019, the company issued another 2,000 shares of common stock so that 9,000 common shares were outstanding at the end of 2019. Common dividends of 17,000 had been paid during 2019. At the end of 2019, the market price per share of common stock was 17.50. Required: 1. Compute Mononas basic earnings per share for 2019. 2. Compute the price/earnings ratio for 2019.arrow_forwardLongmont Corporation earned net income of $90,000 this year. The company began the year with 600 shares of common stock and issued 500 more on April 1. They issued $5,000 in preferred dividends for the year. What is the numerator of the EPS calculation for Longmont?arrow_forwardRebert Inc. showed the following balances for last year: Reberts net income for last year was 3,182,000. Refer to the information for Rebert Inc. above. Also, assume that the dividends paid to common stockholders for last year were 2,600,000 and that the market price per share of common stock is 51.50. Required: 1. Compute the dividends per share. 2. Compute the dividend yield. (Note: Round to two decimal places.) 3. Compute the dividend payout ratio. (Note: Round to two decimal places.)arrow_forward
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