The following data are provided:
December 31 |
|||
2021 |
2020 |
||
Cash |
$ 1600000 |
$ 1020000 |
|
Accounts receivable (net) |
1400000 |
1200000 |
|
Inventories |
2450000 |
2200000 |
|
Plant assets (net) |
6000000 |
6600000 |
|
Accounts payable |
1000000 |
800000 |
|
Income taxes payable |
180000 |
110000 |
|
Bonds payable |
1450000 |
1450000 |
|
10% Preferred stock, $50 par |
1800000 |
1800000 |
|
Common stock, $10 par |
2500000 |
1900000 |
|
Paid-in capital in excess of par |
1650000 |
1300000 |
|
Retained earnings |
4150000 |
3600000 |
|
Net credit sales |
13000000 |
||
Cost of goods sold |
8500000 |
||
Operating expenses |
2750000 |
||
Net income |
1550000 |
Additional information:
Depreciation included in cost of goods sold and operating expenses
is $1230000. On May 1, 2021, 60000 shares of common stock were
issued. The preferred stock is cumulative. The preferred dividends
were not declared during 2021.
The book value per share of common stock at 12/31/21 is
Ans:
Explanation:
1) Common Stock Holder's Equity:
Common stock, $10 par | $ 25,00,000 |
Paid-in capital in excess of par | 1,650,000 |
Retained earnings | 4,150,000 |
Total Stock holder's Equity | $ 8,300,000 |
2) Pref Stock Div.
= $ 1,800,000 × 10%= $180,000
3) No of share outstanding:
= $ 2,500,000 ÷ 10 Per Share
=250,000 share
4) Book Value Per Share:
= Total Stockholder's Equity - Pref. Stock Div ÷ Outstanding Common share
= ( $ 8,300,000 -$180,000) ÷ 250,000 Share
=$ 32.48
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