Recent Question

What is Daytona’s earnings per share 1. Dixie Company reports the following amounts for 2014. Net income $300,000 Average, stockholders' equity 2,000,000 Preferred dividends 84,000 Par value preferred stock 400,000 The 2014 rate of return on common stockholders' equity is a. 18.8%. b. 13.5%. c. 15.0%. d. 10.8%. 2. During 2014 Miami Inc. had sales revenue $1,328,000, gross profit $728,000, operating expenses $398,000, c ...

Other / Other 06 Apr 2016

When a corporation has both preferred and common stock 1. Bedazzle Corporation had 440,000 shares of common stock outstanding during the year. Norman declared and paid cash dividends of $400,000 on the common stock and $320,000 on the preferred stock. Net income for the year was $1,760,000. What is Bedazzle’s earnings per share? a. $3.09 b. $4.00 c. $3.27 d. $2.36 2. When a corporation has both preferred and common sto ...

Other / Other 06 Apr 2016

What is the amount of dividends received by the common stockholders 1. Somento Forest Inc. has 10,000 shares of 6%, $100 par value, cumulative preferred stock and 100,000 shares of $1 par value common stock outstanding at December 31, 2014. What is the annual dividend on the preferred stock? a. $60 per share b. $60,000 in total c. $100,000 in total d. $0.60 per share 2. River Forest, Inc., has 5,000 shares of 6%, $100 par value, ...

Other / Other 06 Apr 2016

The entry to record this dividend declaration includes a credit 1. Sebastiani Inc. declared a $80,000 cash dividend. It currently has 3,000 shares of 7%, $100 par value cumulative preferred stock outstanding. It is one year in arrears on its preferred stock. How much cash will Sebastiani distribute to the common stockholders? a. $38,000. b. $42,000. c. $59,000. d. None of these answer choices are correct. 2. Eggers Inc. has reta ...

Other / Other 06 Apr 2016

Journalize the entries needed on the declaration 1 On November 27, the board of directors of Beth Company declared a $.60 per share dividend. The dividend is payable to shareholders of record on December 7 on December 24. Beth has 25,500 shares of $1 par common stock outstanding at November 27. Journalize the entries needed on the declaration and payment dates. 2 On October 10, the board of directors of Pinto Corporation declared a ...

Other / Other 06 Apr 2016

Outstanding stock of the Crevusse Corporation 1. A stock split a. may occur in the absence of retained earnings. b. will increase total paid-in capital. c. will increase the total par value of the stock. d. will have no effect on the par value per share of stock. 2. Outstanding stock of the Larson Corporation included 40,000 shares of $5 par common stock and 10,000 shares of 5%, $10 par noncumulative preferred stock. In 2013, Lars ...

Other / Other 06 Apr 2016

What is the annual dividend on the preferred stock 1. Solaris, Inc. has 2,000 shares of 5%, $10 par value, cumulative preferred stock and 50,000 shares of $1 par value common stock outstanding at December 31, 2014. What is the annual dividend on the preferred stock? a. $5 per share b. $1,000 in total c. $10,000 in total d. $.05 per share 2. Peabody, Inc. has 5,000 shares of 7%, $100 par value, cumulative preferred stock and 50,00 ...

Other / Other 06 Apr 2016

A corporation incurs income tax expense true or false: 1. Return on common stockholders’ equity is computed by dividing net income by ending stockholders’ equity. 2. Many companies prepare a stockholders’ equity statement instead of presenting a detailed stockholders’ equity section in the balance sheet. 3. A major difference among corporations, proprietorships, and partnerships is that a corporation's ...

Other / Other 06 Apr 2016

The date on which a cash dividend becomes a binding legal 1. Each of the following decreases retained earnings except a a. cash dividend. b. liquidating dividend. c. stock dividend. d. All of these decrease retained earnings. 2. Each of the following decreases total stockholders' equity except a a. cash dividend. b. liquidating dividend. c. stock dividend. d. All of these decrease total stockholders' equity. 3. Which one o ...

Other / Other 06 Apr 2016

Earnings per share indicates the net income earned true or false: 1. Earnings per share is calculated by dividing net income by the weighted-average number of shares of preferred stock and common stock outstanding. 2. Preferred dividends paid are added back to net income in calculating earnings per share for common stockholders. 3. Earnings per share indicates the net income earned by each share of outstanding common stock. 4 ...

Other / Other 06 Apr 2016