Question
In: Finance
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 $10,000
Common stock 6,000
($6 par; 1,000 shares issued)
Additional paid-in capital 2,000
Retained earnings 14,000
a. 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)?
Solutions
jeff jeffy answered 2 years agoRelated Solutions
25-A company whose stock is selling for $45 has the following balance sheet: Assets $32,000...
25-A company whose stock is selling for $45 has the
following balance sheet:
Assets
$32,000
Liabilities
$10,000
Common
stock
6,000
($6 par; 1,000 shares issued)
Additional paid-in capital 2,000
Retained earnings
14,000
a. 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...
The Baldwin company currently has the following balances on their balance sheet: Assets $238,840 Common Stock...
The Baldwin company currently has the following balances on
their balance sheet:
Assets $238,840
Common Stock $54,392
Retained earnings $44,109
Suppose next year the Baldwin Company generates $20,000 in net
profit, pays $10,000 in dividends, assets change to $151,000, and
common stock remains unchanged. What must their total liabilities
be next year?
A) 22,499
B)140,339
C)96,891
D)42,499
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 $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...
Bohemian Manufacturing Company has the following end-of-year balance sheet: Bohemian Manufacturing Company Balance Sheet For the...
Bohemian Manufacturing Company has the following end-of-year
balance sheet:
Bohemian Manufacturing Company
Balance Sheet
For the Year Ended on December 31
Assets
Liabilities
Current Assets:
Current Liabilities:
Cash and equivalents
$150,000
Accounts payable
$250,000
Accounts receivable
400,000
Accrued liabilities
150,000
Inventories
350,000
Notes payable
100,000
Total Current Assets
$900,000
Total Current Liabilities
$500,000
Net Fixed Assets:
Long-Term Bonds
1,000,000
Net plant and equipment(cost minus depreciation)
$2,100,000
Total Debt
$1,500,000
Common Equity
Common stock
800,000
Retained earnings
700,000
Total Common Equity...
1) Show the balance sheet for a hypothetical bank balance sheet that has common stock with...
1) Show the balance sheet for a hypothetical bank balance sheet
that has common stock with book value of 20, loans of 200, Treasury
bonds of 20, cash of 10, reserves at the Fed of 30, and deposits.
(You must compute the amount of deposits, given that these are the
only items on this balance sheet.)
2) What happens to this balance sheet if it experiences a net
reduction in deposits of 20.
(a) In this setting, suppose that the...
Frizell Company has the following comparative balance sheet data.
Frizell Company has the following comparative balance sheet data.
Additional information for 2017:
1. Net income was $25,000.
2. Sales on account were $410,000. Sales returns and allowances were $20,000.
3. Cost of goods sold was $198,000.
Instructions
Compute the following ratios at December 31, 2017.
(a) Current ratio.
(b) Acid-test ratio.
(c) Accounts receivable turnover.
(d) Inventory turnover.
Fuzzy Button Clothing Company has the following end-of-year balance sheet: Fuzzy Button Clothing Company Balance Sheet...
Fuzzy Button Clothing Company has the following end-of-year
balance sheet:
Fuzzy Button Clothing Company
Balance Sheet
For the Year Ended on December 31
Assets
Liabilities
Current Assets:
Current Liabilities:
Cash and equivalents
$150,000
Accounts payable
$250,000
Accounts receivable
400,000
Accrued liabilities
150,000
Inventories
350,000
Notes payable
100,000
Total Current Assets
$900,000
Total Current Liabilities
$500,000
Net Fixed Assets:
Long-Term Bonds
1,000,000
Net plant and equipment(cost minus depreciation)
$2,100,000
Total Debt
$1,500,000
Common Equity
Common stock
800,000
Retained earnings
700,000
Total...
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