Accounting: What the Numbers Mean
11th Edition
ISBN: 9781259535314
Author: David Marshall, Wayne William McManus, Daniel Viele
Publisher: McGraw-Hill Education
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Textbook Question
Chapter 9, Problem 9.3ME
Mini-Exercise 9.3
LO 6
Calculate basic EPS Net income was $659,250 for the year. Throughout the year the company had outstanding 18,000 shares of $2.50, $50 par value
Required:
Calculate basic earnings per share of common stock for the year.
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Bonita Corporation reports net income of $576,000 and a weighted-average of 240,000 shares of common stock outstanding for the year.
Compute the earnings per share of common stock. (Round answer to 2 decimal places, e.g. 2.25.)
Earnings per share $
Chapter 14 Homework
The comparative financial statements of Marshall Inc. are as follows. The market price of Marshall common stock was $82.60 on December 31, 20Y2.
Comparative Retained Earnings StatementFor the years ended December 31, 20Y2 and 20Y1
20Y2
20Y1
Retained Earnings, Jan. 1
3,704,000
3,264,000
Net Income
600,000
550,000
Dividends:
On Preferred Stock
(10,000)
(10,000)
On Common Stock
(100,000)
(100,000)
Increase in Retained Earnings
490,000
440,000
Retained Earnings, Dec. 31
4,194,000
3,704,000
Comparative Income StatementFor the years ended December 31, 20Y2 and 20Y1
20Y2
20Y1
Sales
10,850,000
10,000,000
Cost of goods sold
(6,000,000)
(5,450,000)
Gross Profit
4,850,000
4,550,000
Selling Expenses
(2,170,000)
(2,000,000)
Administrative Expenses
(1,627,500)
(1,500,000)
Total Operating Expenses
(3,797,500)
(3,500,000)
Operating…
Selected stock transactions
Diamondback Welding & Fabrication Corporation sells and services pipe welding equipment in Illinois. The following
selected accounts appear in the ledger of Diamondback Welding & Fabrication at the beginning of the current year:
Preferred 2% Stock, $200 par (90,000 shares authorized, 45,000 shares issued)
Paid-In Capital in Excess of Par-Preferred Stock
Common Stock, $20 par (800,000 shares authorized, 210,000 shares issued)
Paid-In Capital in Excess of Par-Common Stock
Retained Earnings
During the year, the corporation completed a number of transactions affecting the stockholders' equity. They are
summarized as follows:
a. Purchased 48,000 shares of treasury common for $21 per share.
b. Sold 24,000 shares of treasury common for $24 per share.
c. Issued 23,000 shares of preferred 2% stock at $217.
d. Issued 80,000 shares of common stock at $23, receiving cash.
e. Sold 16,000 shares of treasury common for $19 per share.
f. Declared cash dividends of $4.00 per…
Chapter 9 Solutions
Accounting: What the Numbers Mean
Ch. 9 - Prob. 9.1MECh. 9 - Mini-Exercise 9.2 LO 5 Calculate operating income...Ch. 9 - Mini-Exercise 9.3 LO 6 Calculate basic EPS Net...Ch. 9 - Mini-Exercise 9.4
LO 10
Calculate cash flows from...Ch. 9 - Exercise 9.5
LO 1
Calculate earned revenues Big...Ch. 9 - Exercise 9.6 LO 1 Calculate earned revenues...Ch. 9 - Exercise 9.7 LO 2 Effects of inventory error If...Ch. 9 - Exercise 9.8 LO 2 Effects of inventory error...Ch. 9 - Prob. 9.9ECh. 9 - Prob. 9.10E
Ch. 9 - Exercise 9.11 LO 5 Operating income versus net...Ch. 9 - Prob. 9.12ECh. 9 - Prob. 9.13ECh. 9 - Prob. 9.14ECh. 9 - Prob. 9.15ECh. 9 - Prob. 9.16ECh. 9 - Prob. 9.17ECh. 9 - Prob. 9.18ECh. 9 - Problem 9.19 LO 5 Calculate operating income and...Ch. 9 - Prob. 9.20PCh. 9 - Problem 9.21
LO 3
Use gross profit ratio to...Ch. 9 - Prob. 9.22PCh. 9 - Prob. 9.23PCh. 9 - Problem 9.24
LO 10
Prepare a statement of cash...Ch. 9 - Problem 9.25
LO 10
Cash flows from operating,...Ch. 9 - Prob. 9.26PCh. 9 - Prob. 9.27PCh. 9 - Problem 9.28 LO 10. 11 Complete balance sheet and...Ch. 9 - Prob. 9.29PCh. 9 - Prob. 9.30PCh. 9 - Prob. 9.31CCh. 9 - Prob. 9.32CCh. 9 - Prob. 9.33C
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