Question
In: Accounting
he net income of Foster Furniture, Inc., amounted to $1,600,000 for the current year. a. Compute...
he net income of Foster Furniture, Inc., amounted to $1,600,000 for the current year. a. Compute the amount of earnings per share assuming that the shares of capital stock outstanding throughout the year consisted of: 1. 400,000 shares of $1 par value common stock and no preferred stock. 2. 100,000 shares of 8 percent, $100 par value, cumulative preferred stock and 300,000 shares of $5 par value common stock. b. Is the earnings per share figure computed in part a(2) considered to be basic or diluted?
Compute the amount of earnings per share assuming that the shares of capital stock outstanding throughout the year consisted of 400,000 shares of $1 par value common stock and no preferred stock. (Round your answer to 2 decimal places.
Solutions
Expert Solution
| Case a | Case b | |
| Net Income | 1,600,000 | 1,600,000 |
| Less: Preferred Dividend | - | 800,000 |
| Earnings available for Common Stockholders | 1,600,000 | 800,000 |
| Number of Common Shares | 400,000 | 300,000 |
| Earnings per Share | 4.00 | 2.67 |
| It is considered as basic earnings per share. Diluted earnings is earnings per share calculated after considering potential equity shares in future | ||
ekkarill92 answered 1 year agoRelated Solutions
The net income reported on the income statement of CamilloX Inc. for the current year was...
The net income reported on the income statement of CamilloX Inc.
for the current year was $150,000. Depreciation recorded on
equipment and building amounted to $45,000 for the
year. Balances of the current asset and current
liability accounts at the beginning and end of the year are as
follows:
Account
End of Year
Beginning of Year
Cash
42,875
36,250
Trade Receivables (net)
147,500
137,500
Inventories
109,375
93,750
Prepaid Expenses
9,250
11,875
Accounts Payable
57,000
40,000
Salaries Payable
7,625
10,625
Dividends Payable...
Jolie Foster Care Homes Inc. shows the following data: Year Net Income Total Assets Stockholders'...
Jolie Foster Care Homes Inc. shows the following data:
Year
Net Income
Total
Assets
Stockholders'
Equity
Total Debt
20X1
$
200,000
$
2,520,000
$
1,550,000
$
970,000
20X2
189,000
2,630,000
1,710,000
920,000
20X3
137,000
2,120,000
1,470,000
650,000
20X4
132,000
2,270,000
1,650,000
620,000
a-1. Compute the ratio of net income to total
assets for each year. (Input your answers as a percent
rounded to 2 decimal places.)
year
return on assets
2011
%
2012
%
2013
%
2014
%...
Jolie Foster Care Homes Inc. shows the following data: Year Net Income Total Assets Stockholders'...
Jolie Foster Care Homes Inc. shows the following data:
Year
Net Income
Total
Assets
Stockholders'
Equity
Total Debt
20X1
$
155,000
$
2,390,000
$
761,000
$
1,629,000
20X2
191,000
2,700,000
966,000
1,734,000
20X3
208,000
2,730,000
1,770,000
960,000
20X4
192,000
2,470,000
2,220,000
250,000
compute the ratio of net income to total assets for each year.
round to 2 decimal place and compute the ratio of net income to
stockholders equity for each year.
Jolie Foster Care Homes Inc. shows the following data: Year Net Income Total Assets Stockholders'...
Jolie Foster Care Homes Inc. shows the following data:
Year
Net Income
Total
Assets
Stockholders'
Equity
Total Debt
20X1
$
155,000
$
2,390,000
$
761,000
$
1,629,000
20X2
191,000
2,700,000
966,000
1,734,000
20X3
208,000
2,730,000
1,770,000
960,000
20X4
192,000
2,470,000
2,220,000
250,000
Compute the ratio of net income to total assets for each year.
(round to 2 decimal place)
Year Return on Assets
20X1 %
20X2 %
20X3 %
20X4 %
Compute the ratio of net income to stockholders...
Online Network Inc. has a net income of $500,000 in the current fiscal year. There are...
Online Network Inc. has a net income of $500,000 in the current
fiscal year. There are 100,000 shares of common stock outstanding
along with convertible bonds, which have a total face value of $1.2
million. The $1.2 million is represented by 1,200 different $1,000
bonds. Each $1,000 bond pays 4 percent interest. The conversion
ratio is 20. The firm is in a 20 percent tax bracket.
. Compute basic earnings per share.
Compute diluted earnings per share
Jack has current year net employment income of $45,000. In addition, he has the following additional...
Jack has current year net employment income of $45,000. In
addition, he has the following additional sources of income, gains,
and losses:
• A loss from an unincorporated business of $23,000.
• Interest income of $4,500.
• A capital gain of $27,000.
• A capital loss of $36,400.
• Spousal support paid of $24,000.
• A net rental loss of $14,500.
Determine Jack's minimum Net Income For Tax Purposes for the
current year and indicate the amount and type of...
The net income reported on the income statement for the current year was $121,900. Depreciation recorded...
The net income reported on the income statement for the current
year was $121,900. Depreciation recorded on store equipment for the
year amounted to $20,100. Balances of the current asset and current
liability accounts at the beginning and end of the year are as
follows:
End of Year
Beginning of Year
Cash
$47,050
$42,820
Accounts receivable (net)
33,730
31,640
Inventories
46,060
48,170
Prepaid expenses
5,180
4,070
Accounts payable (merchandise creditors)
44,090
40,510
Wages payable
24,090
26,460
a. Prepare the “Cash...
The net income reported on the income statement for the current year was $121,600. Depreciation recorded...
The net income reported on the income statement for the current
year was $121,600. Depreciation recorded on store equipment for the
year amounted to $20,100. Balances of the current asset and current
liability accounts at the beginning and end of the year are as
follows:
End of Year
Beginning of Year
Cash
$49,490
$45,530
Accounts receivable (net)
35,480
33,650
Inventories
48,450
51,220
Prepaid expenses
5,440
4,330
Accounts payable (merchandise creditors)
46,370
43,070
Wages payable
25,340
28,140
a. Prepare the Cash...
The net income reported on the income statement for the current year was $361,300. Depreciation recorded...
The net income reported on the income statement for the current
year was $361,300. Depreciation recorded on store equipment for the
year amounted to $15,520. Balances of the current asset and current
liability accounts at the beginning and end of the year are as
follows:
End of Year
Beginning of Year
Cash
$40,180
$40,070
Accounts receivable (net)
30,070
28,060
Merchandise inventory
40,390
45,420
Prepaid expenses
3,470
4,840
Accounts payable (merchandise creditors)
38,610
37,710
Wages payable
20,330
24,800
Required:
A.
Prepare...
The net income reported on the income statement for the current year was $313,900. Depreciation recorded...
The net income reported on the income statement for the current
year was $313,900. Depreciation recorded on equipment and a
building amounted to $93,900 for the year. Balances of the current
asset and current liability accounts at the beginning and end of
the year are as follows: End of Year Beginning of Year Cash $80,360
$84,380 Accounts receivable (net) 101,900 104,120 Inventories
200,900 179,390 Prepaid expenses 11,170 11,900 Accounts payable
(merchandise creditors) 89,760 94,170 Salaries payable 12,940
11,730 a. Prepare...
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- Write in Python and as 2 seperate programs Write a program that allows the user to...
- Asymptotic Notation. (a) [10 pts.] Prove that n3 −91n2 −7n−14 = Ω(n3). Your answer must clearly...
- Prepare ONE Page reflection to the readings of the Perceptual Process incorporating as well one outside...
- How is the internet affecting our everyday life? I just need a rough draft for this...
- Please explain your view of the most difficult aspect of Customs Compliance?
- You are required to write an interactive program that prompts the user for seven (7) real...
- Describe in detail the five-forces model of industry competition. What causes each of the forces to...
ADVERTISEMENT