A company has 950 shares of $63 par value preferred stock outstanding. It also has 12,000...

A company has 950 shares of $63 par value preferred stock outstanding. It also has 12,000 shares of common stock outstanding, and the total value of its stockholders' equity is $471,450. The company's book value per common share equals:

Multiple Choice

$36.41.
$34.30.
$31.78.
$35.33.
$39.29.

A corporation issued 200 shares of its $5 par value common stock in payment of a $2,800 charge from its accountant for assistance in filing its charter with the state. The entry to record this transaction will include:

Multiple Choice

A $2,800 credit to Common Stock.
A $1,800 credit to Paid-in Capital in Excess of Par Value, Common Stock.
A $1,000 debit to Organization Expenses.
A $2,800 debit to Legal Expenses.
A $2,800 credit to Cash.

Global Corporation had 44,000 shares of $20 par value common stock outstanding on July 1. Later that day the board of directors declared a 5% stock dividend when the market value of each share was $29. The entry to record the dividend declaration is:

Multiple Choice

Debit Retained Earnings $63,800; credit Common Stock Dividend Distributable $44,000; credit Paid-In Capital in Excess of Par Value, Common Stock $19,800.
Debit Retained Earnings $63,800; credit Cash $63,800.
Debit Retained Earnings $44,000; credit Common Stock Dividend Distributable $44,000.
No entry is made until the stock is issued.
Debit Retained Earnings $63,800; credit Common Stock Dividend Distributable $63,800.

In preparing a company's statement of cash flows using the indirect method, the following information is available:


Net income	$	53,000
Accounts payable increased by		18,100
Accounts receivable decreased by		25,100
Inventories increased by		5,200
Depreciation expense		30,300

Net cash provided by operating activities was:

Multiple Choice

$81,500.
$71,100.
$121,300.
$131,700.
$60,700.

Solutions

Expert Solution

Preferred Stock = 950 x $63 = $59850
Total Equity attributable to Common Stockholders = Total Equity - Preferred Stock
= $471450 - $59850 = $411600

Book Value per share = $411600 /12000 = $34.30
Answer is b. $34.30

Answer is b. $1,800 credit to Paid-in Capital in Excess of Par Value, Common Stock.
i.e. $2800 - (200 x $5) = $1800

5% stock dividend = 44000 x 5% i.e. 2200 shares
Common Stock credit by $ 44000 i.e. 2200 x $20
Paid-In Capital in Excess of Par Value credit by $ 19800 i.e. 2200 x $9 i.e. ($29-20)

Answer is a. Debit Retained Earnings $63,800; credit Common Stock Dividend Distributable $44,000; credit Paid-In Capital in Excess of Par Value, Common Stock $19,800.

Cash flow from Operating Activities
Net Income		$ 53,000.00
Adjustments
Depreciation	$ 30,300.00
Change In current assets & Liabilities
Decrease in Accounts Receivable (net)	$ 25,100.00
Increase in inventories	$ -5,200.00
Increase in Accounts payable	$ 18,100.00
Total Adjustments		$ 68,300.00
Cash from operating activities			$ 1,21,300.00

Answer is c. $121300

ekkarill92 answered 1 year ago

Next > < Previous

Related Solutions

Preferred stock valuation TXS Manufacturing has an outstanding preferred stock issue with a par value of $63 per share.

Preferred stock valuation TXS Manufacturing has an outstanding preferred stock issue with a par value of $63 per share. The preferred shares pay dividends annually at a rate of 12%.a. What is the annual dividend on TXS preferred stock?b. If investors require a return of 6% on this stock and the next dividend is payable one year from now, what is the price of TXS preferred stock?c. Suppose that TXS has not paid dividends on its preferred shares in the...

York’s outstanding stock consists of 90,000 shares of 7.0% preferred stock with a $5 par value and also 160,000 shares of common stock with a $1 par value

York’s outstanding stock consists of 90,000 shares of 7.0% preferred stock with a $5 par value and also 160,000 shares of common stock with a $1 par value. During its first four years of operation, the corporation declared and paid the following total cash dividends: 2015 total cash dividends $ 19,800 2016 total cash dividends 29,500 2017 total cash dividends 285,000 2018 total cash dividends 435,000 rev: 11_29_2018_QC_CS-149901 Exercise 11-9 Dividends on common and cumulative...

Riverbed, Ltd. has 12,000 outstanding no par value $1.00 preferred shares issued for $120,000 and 35,000...

Riverbed, Ltd. has 12,000 outstanding no par value $1.00 preferred shares issued for $120,000 and 35,000 outstanding no par value common shares issued for $24,500. No dividends were paid or declared during 2020 and 2021. Riverbed wants to distribute $41,340 in dividends on December 31, 2022. Your answer is correct. Calculate the amount of dividends to be paid to each group of shareholders (i.e., preferred and common), assuming the preferred shares are non-cumulative and non-participating. Preferred Common Total dividends $...

Nottebart Corporation has outstanding 10,000 shares of $100 par value, 6% preferred stock and 60,000 shares...

Nottebart Corporation has outstanding 10,000 shares of $100 par value, 6% preferred stock and 60,000 shares of $10 par value common stock. The preferred stock was issued in January 2017, and no dividends were declared in 2017 or 2018. In 2019, Nottebart declares a cash dividend of $300,000. How will the dividend be shared by common and preferred stockholders if the preferred is (a) noncumulative and (b) cumulative?

Riverbed Company has outstanding 2,700 shares of $100 par, 7% preferred stock and 14,200 shares of...

Riverbed Company has outstanding 2,700 shares of $100 par, 7% preferred stock and 14,200 shares of $10 par value common. The following schedule shows the amount of dividends paid out over the last 4 years. Allocate the dividends to each type of stock under assumptions (a) and (b). Express your answers in per-share amounts using the format shown below. (Round the rate of participation to 4 decimal places, e.g.1.4278%. Round answers to 2 decimal places, e.g. $6.85.) Assumptions (a) Preferred,...

Bonita Company has outstanding 2,600 shares of $100 par, 7% preferred stock and 16,400 shares of...

Bonita Company has outstanding 2,600 shares of $100 par, 7% preferred stock and 16,400 shares of $10 par value common. The following schedule shows the amount of dividends paid out over the last 4 years. Allocate the dividends to each type of stock under assumptions (a) and (b). Express your answers in per-share amounts using the format shown below. (Round the rate of participation to 4 decimal places, e.g.1.4278%. Round answers to 2 decimal places, e.g. $6.85.) Assumptions (a) Preferred,...

York’s outstanding stock consists of 80,000 shares of 7.5% preferred stock with a $5 par value...

York’s outstanding stock consists of 80,000 shares of 7.5% preferred stock with a $5 par value and also 200,000 shares of common stock with a $1 par value. During its first four years of operation, the corporation declared and paid the following total cash dividends: 2015 total cash dividends $ 20,000 2016 total cash dividends 28,000 2017 total cash dividends 200,000 2018 total cash dividends 350,000 rev: 11_29_2018_QC_CS-149901 Exercise 11-9 Dividends on common and cumulative preferred stock LO C2...

1. Lott Co. has outstanding 20,000 shares of 8% preferred stock with a $10 par value...

1. Lott Co. has outstanding 20,000 shares of 8% preferred stock with a $10 par value and 100,000 shares of $3 par value common stock. Dividends have been paid every year except last year and the current year. If the preferred stock is cumulative and fully participating and $131,000 is distributed, the common stockholders will receive: Select one: a. $0 b. $51,000 c. $61,000 d. $69,000 e. $85,000 2. What effect will the acquisition of treasury stock have on earnings...

1. Lott Co. has outstanding 20,000 shares of 8% preferred stock with a $10 par value...

Marin Corp. had $100,000 of 7%, $20 par value preferred stock and 12,000 shares of $25...

Marin Corp. had $100,000 of 7%, $20 par value preferred stock and 12,000 shares of $25 par value common stock outstanding throughout 2017. Assuming that total dividends declared in 2017 were $64,000, and that the preferred stock is not cumulative but is fully participating, common stockholders should receive 2017 dividends of what amount? Common stockholders should receive $________________ Assuming that total dividends declared in 2017 were $64,000, and that the preferred stock is fully participating and cumulative with preferred dividends...

Subjects