Intermediate Accounting
3rd Edition
ISBN: 9780136912644
Author: Elizabeth A. Gordon; Jana S. Raedy; Alexander J. Sannella
Publisher: Pearson Education (US)
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Chapter 5, Problem 5.9E
Prepare Statement of Stockholders' Equity. Dane for the current year ended December 31.
| $520,000 | |
| Common Stock-no par. Beginning Balance | 234,500 |
| Net Income | 89,500 |
| Dividends Declared | (15,000) |
| Unrealized Gain on Available-for-Sale Debt Investments—Net of tax | 11,000 |
| New Issue of Common Stock | 25,000 |
| Accumulated Other Comprehensive Income (loss): Beginning Balance | (55,675) |
Required:
Prepare a statement of stockholders’ equity for the current year.
Required
Prepare a statement of stockholders’ equity for the current year.
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The following selected data were taken from the financial statements of Vidahill Inc. for December 31, 20Y7, 20Y6, and 20Y5:
December 31
Total assets
Notes payable (8% interest)
Common stock
Preferred 5% stock, $100 par
(no change during year)
Retained earnings
20Y7
$209,000
70,000
28,000
14,000
Return on total assets
debt.
20Y6
72,140
The 20Y7 net income was $20,790, and the 20Y6 net income was $10,750. No dividends on common stock were declared between 20Y5
and 20Y7. Preferred dividends were declared and paid in full in 20Y6 and 20Y7.
20Y7
$188,000
70,000
28,000
14,000
0.25
52,050
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.
Return on stockholders' equity
Return on common stockholders' equity
b. The profitability ratios indicate that the company's profitability has
X %
%
20Y5
%
$167,000
70,000
28,000
14,000
42,000
the return on…
Ratio the liabilities to stockholders equity and times interest earned. following data were taken from the financial statement of Hunter Inc.for December 31st of two recent years:
Current year
accounts payable
$434,000.
Current maturity.
290,000
Serial bonds payable, 10%
1,190,000
Common stock,$1 par value
70,000
Paid- in capital in excess of par
700,000
Retained earnings
2,420,000
Previous year
$127,000
290,000
1,480,000
90,000
700,000
1,920,000
The income before income tax expense was $518,000 and $453,000 for the camera in previous years respectively.
A. Determine the ratio of liabilities to stockholders Equity at the end of each year. Round to one decimal place.
Current year
Previous year
B. Determine the times interest earned ratio for both years. Round to one decimal place.
Current year
Previous year
C. The ratio of liabilities to stockholders Equity has _______and the number of times bond interest charges were earned has_______ from…
Balance sheet and income statement data indicate the following:
Bonds payable, 10% (due in two years)
$928,000
Preferred 5% stock, $100 par (no change during year)
285,500
Common stock, $50 par (no change during year)
1,703,800
Income before income tax for year
344,012
Income tax for year
73,804
Common dividends paid
85,190
Preferred dividends paid
14,275
Interest expense
92,800
Based on the data presented, what is the times interest earned ratio? Round your answer to two decimal places.
Chapter 5 Solutions
Intermediate Accounting
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