2
answers
0
watching
593
views
rubydeer323Lv1
28 Sep 2019
dan, Inc., has sales of $603,000, costs of $255,000,depreciation expense of $62,000, interest expense of $29,000, and atax rate of 30 percent. The firm paid out $45,000 in cash dividendsand has 58,000 shares of common stock outstanding.
1)What is the earnings per share figure? 2) what is the dividends per share figure?
dan, Inc., has sales of $603,000, costs of $255,000,depreciation expense of $62,000, interest expense of $29,000, and atax rate of 30 percent. The firm paid out $45,000 in cash dividendsand has 58,000 shares of common stock outstanding.
1)What is the earnings per share figure?
2) what is the dividends per share figure?
Irving HeathcoteLv2
28 Sep 2019
Already have an account? Log in
Related questions
Selected transactions completed by Equinox Products Inc. duringthe fiscal year ended December 31, 2016, were as follows:
Record on journal page 10:
| Jan. | 3 | Issued 15,000 shares of $20 par common stock at $30, receivingcash. |
| Feb. | 15 | Issued 4,000 shares of $80 par preferred 5% stock at $100,receiving cash. |
| May | 1 | Issued $500,000 of 10-year, 5% bonds at 104, with interestpayable semiannually. |
| 16 | Declared a dividend of $0.50 per share on common stock and$1.00 per share on preferred stock. On the date of record, 100,000shares of common stock were outstanding, no treasury shares wereheld, and 20,000 shares of preferred stock were outstanding.Journalize this transaction as a single entry. | |
| 26 | Paid the cash dividends declared on May 16. | |
| Jun. | 1 | Purchased 7,500 shares of Solstice Corp. at $40 per share, plusa $150 brokerage commission. The investment is classified as anavailable-for-sale investment. |
| 8 | Purchased 8,000 shares of treasury common stock at $33 pershare. | |
| 22 | Purchased 40,000 shares of Pinkberry Co. stock directly fromthe founders for $24 per share. Pinkberry has 125,000 shares issuedand outstanding. Equinox Products Inc. treated the investment as anequity method investment. | |
| 30 | Declared a $1.00 cash dividend per share on preferred stock. Onthe date of record, 20,000 shares of preferred stock wereoutstanding. | |
| Jul. | 11 | Paid the cash dividends declared on Jul. 11 to the preferredstockholders. |
| Aug. | 27 | Received $27,500 dividend from Pinkberry Co. investment of Jun.22. |
Record on journal page 11:
| Oct. | 1 | Purchased $90,000 of Dream Inc. 10-year, 5% bonds, directlyfrom the issuing company, at their face amount plus accruedinterest of $375. The bonds are classified as a held-to-maturitylong-term investment. |
| 7 | Sold, at $38 per share, 2,600 shares of treasury common stockpurchased on Jun. 8. | |
| 14 | Received a dividend of $0.60 per share from the Solstice Corp.investment on Jun. 1. | |
| 29 | Sold 1,000 shares of Solstice Corp. at $45, includingcommission. | |
| 31 | Recorded the payment of semiannual interest on the bonds issuedon May 1 and the amortization of the premium for six months. Theamortization is determined using the straight-line method. | |
| Dec. | 31 | Accrued interest for three months on the Dream Inc. bondspurchased on Oct. 1. |
| 31 | Pinkberry Co. recorded total earnings of $240,000. EquinoxProducts recorded equity earnings for its share of Pinkberry Co.net income. | |
| 31 | The fair value for Solstice Corp. stock was $39.02 per share onDecember 31, 2016. The investment is adjusted to fair value, usinga valuation allowance account. Assume Valuation Allowance forAvailable-for-Sale Investments had a beginning balance ofzero. |
| Required: | |||||||||
| 1. | Journalize the selected transactions. Refer to the Chart ofAccounts for exact wording of account titles. | ||||||||
| 2. | After all of the transactions for the year ended December 31,2016, had been posted [including the transactions recorded in part(1) and all adjusting entries], the data that follows were takenfrom the records of Equinox Products Inc.
|
Income Statement data: | |
|---|---|
| Advertising expense | $ 150,000 |
| Cost of merchandise sold | 3,700,000 |
| Delivery expense | 30,000 |
| Depreciation expense-office buildings and equipment | 30,000 |
| Depreciation expense-store buildings and equipment | 100,000 |
| Dividend revenue | 4,500 |
| Gain on sale of investments | 4,980 |
| Income from Pinkberry Co. investment | 76,800 |
| Income tax expense | 140,500 |
| Interest expense | 21,000 |
| Interest revenue | 2,720 |
| Miscellaneous administrative expense | 7,500 |
| Miscellaneous selling expense | 14,000 |
| Office rent expense | 50,000 |
| Office salaries expense | 170,000 |
| Office supplies expense | 10,000 |
| Sales | 5,254,000 |
| Sales commissions | 185,000 |
| Sales salaries expense | 385,000 |
| Store supplies expense | 21,000 |
Retained earnings and balance sheet data: | |
|---|---|
| Accounts payable | $ 194,300 |
| Accounts receivable | 545,000 |
| Accumulated depreciationâoffice buildings and equipment | 1,580,000 |
| Accumulated depreciationâstore buildings and equipment | 4,126,000 |
| Allowance for doubtful accounts | 8,450 |
| Available-for-sale investments (at cost) | 260,130 |
| Bonds payable, 5%, due 2024 | 500,000 |
| Cash | 246,000 |
| Common stock, $20 par | |
| (400,000 shares authorized; 100,000 shares issued, 94,600outstanding) | 2,000,000 |
| Dividends: | |
| Cash dividends for common stock | 155,120 |
| Cash dividends for preferred stock | 100,000 |
| Goodwill | 500,000 |
| Income tax payable | 44,000 |
| Interest receivable | 1,125 |
| Investment in Pinkberry Co. stock (equity method) | 1,009,300 |
| Investment in Dream Inc. bonds (long term) | 90,000 |
| Merchandise inventory (December 31, 2016), | |
| at lower of cost (FIFO) or market | 778,000 |
| Office buildings and equipment | 4,320,000 |
| Paid-in capital from sale of treasury stock | 13,000 |
| Excess of issue price over par: | |
| -Common | 886,800 |
| -Preferred | 150,000 |
| Preferred 5% stock, $80 par | |
| (30,000 shares authorized; 20,000 shares issued) | 1,600,000 |
| Premium on bonds payable | 19,000 |
| Prepaid expenses | 27,400 |
| Retained earnings, January 1, 2016 | 9,319,725 |
| Store buildings and equipment | 12,560,000 |
| Treasury stock | |
| (5,400 shares of common stock at cost of $33 per share) | 178,200 |
| Unrealized gain (loss) on available-for-sale investments | (6,500) |
| Valuation allowance for available-for-sale investments | (6,500) |
