Question
In: Finance
The Western Pipe Company has the following capital section in its balance sheet. Its stock is...
The Western Pipe Company has the following capital section in its balance sheet. Its stock is currently selling for $5 per share.
| Common stock (65,000 shares at $1 par) | $ | 65,000 |
| Capital in excess of par | 65,000 | |
| Retained earnings | 170,000 | |
| Total equity | $ | 300,000 |
The firm intends to first declare a 5 percent stock dividend and then pay a 10-cent cash dividend (which also causes a reduction of retained earnings).
Show the capital section of the balance sheet after the first
transaction and then after the second transaction. (Do not
round intermediate calculations and round your answers to the
nearest whole dollar.)
Solutions
jeff jeffy answered 2 years agoRelated Solutions
The Western Pipe Company has the following capital section in its balance sheet. Its stock is...
The Western Pipe Company has the following capital section in
its balance sheet. Its stock is currently selling for $6 per
share.
Common stock (55,000
shares at $1 par)
$
55,000
Capital in excess of
par
55,000
Retained
earnings
180,000
Total equity
$
290,000
The firm intends to first declare a 5 percent stock dividend and
then pay a 10-cent cash dividend (which also causes a reduction of
retained earnings).
Show the capital section of the balance sheet after the...
The Western Pipe Company has the following capital section in its balance sheet. Its stock is...
The Western Pipe Company has the following capital section in
its balance sheet. Its stock is currently selling for $5 per
share.
Common stock (65,000 shares at $1 par)
$
65,000
Capital in excess of par
65,000
Retained earnings
170,000
Total equity
$
300,000
The firm intends to first declare a 5 percent stock dividend and
then pay a 10-cent cash dividend (which also causes a reduction of
retained earnings).
Show the capital section of the balance sheet after the...
The Western Pipe Company has the following capital section in its balance sheet. Its stock is...
The Western Pipe Company has the following capital section in
its balance sheet. Its stock is currently selling for $4 per
share.
Common stock (65,000 shares at $2 par)
$
130,000
Capital in excess of par
130,000
Retained earnings
250,000
Total equity
$
510,000
The firm intends to first declare a 10 percent stock dividend
and then pay a 15-cent cash dividend (which also causes a reduction
of retained earnings).
Show the capital section of the balance sheet after the...
A company has the following balance sheet. What is its net operating working capital? Cash $...
A company has the following balance sheet.
What is its net operating working capital?
Cash $ 10 Accounts payable $ 20
Short-term investments 20 Accruals 30
Accounts receivable 30 Notes payable 20
Inventory 40 Current liabilities 70
Current assets 100 Long-term debt 30
Net fixed assets 80 Common equity 10
Retained earnings 70
Total assets $180 Total liab. & equity $180
A company whose stock is selling for $45 has the following balance sheet:
A company whose stock is selling for $45 has
the following balance sheet: Assets
$32,000
Liabilities
$10,000Common
stock
6,000
($6 par; 1,000 shares issued)
Additional paid-in capital 2,000
Retained earnings
14,000a. Construct a new balance sheet showing a 3 for 1 stock split.
What is the new price for the stock?b. What would be the balance sheet if the firm paid a 10 percent
stock dividend (instead of the stock split)?
(Weighted average cost of capital—weights) A company has the following right-hand side of its balance sheet:...
(Weighted average cost of capital—weights) A company has the
following right-hand side of its balance sheet:
Bonds payable = $250,000
Preferred stock (1000 shares) = $100,000
Common stock (200,000 shares) = $400,000
--------------------------------------------------------------
Total Liabilities + Equity = $750,000
Bonds payable are currently priced at 115 (115% of face value) in
the market, preferred stock is selling at $70 per share, and common
stock is selling at $20 per share. Management has announced that it
is targeting a capital structure...
A company had the following stockholders' equity section on its balance sheet on January 1, 2008:Common...
A company had the following stockholders' equity section on its
balance sheet on January 1, 2008:Common stock, $2 par, 10,000
shares issued and outstanding$20,000 Paid-in capital in excess of
par-common 40,000 Retained earnings 10,000 Total stockholders'
equity $70,000 .
All common shares were originally sold for $6 each. On February
16, the company reacquired 3,000 shares of common stock at $15 per
share. 500 of these treasury shares were reissued at $20 on June 1
and 1,500 of these shares...
A company A with founding share capital = €200,000 has issued 200,000 shares. According to its balance sheet, company A has:
A company A with founding share capital = €200,000 has issued 200,000 shares. According to its balance sheet, company A has:Equity = €400,000Profits before Taxes = €200,000Profits after Taxes = €120,000.Calculate the following: Nominal Share Price, Book Share Price, Earnings per share, and the ratio P/E.
Find a publicly traded company that has treasury stock on its balance sheet. Provide a link...
Find a publicly traded company that has treasury stock on its
balance sheet. Provide a link to the balance sheet in your post and
explain the details of the treasury stock transactions based upon
the amounts and disclosures found in the financial statements. Why
do you think the company acquired the treasury stock? Do not choose
a company that has already been reported on by one of your
classmates. Participate in follow-up discussion by critiquing the
posts provided by your...
Vega Company reported the following shareholders’ equity section in its most recent balance sheet. Shareholders’ Equity...
Vega Company reported the following shareholders’ equity section
in its most recent balance sheet. Shareholders’ Equity Common Stock
($1 par, 2,000,000 shares authorized, 100,000 shares issued, 95,000
shares outstanding) $ 100,000 Additional Paid-in Capital 1,900,000
Total Contributed Capital 2,000,000 Retained Earnings 3,100,000
Total Contributed Capital and Retained Earnings 5,100,000 Less:
Cost of Treasury Stock (5,000 shares) (75,000) Total shareholders’
Equity 5,025,000 Prepare the Shareholders’ Equity section for Vega
Company if a) Vega declares 100% stock dividend; b) Vega does a...
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