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Elite Trailer Parks has an operating profit of $300,000. Interest expense for the year was $38,100;...

Elite Trailer Parks has an operating profit of $300,000. Interest expense for the year was $38,100; preferred dividends paid were $29,500; and common dividends paid were $36,700. The tax was $69,100. The firm has 16,400 shares of common stock outstanding.

Calculate the earnings per share and the common dividends per share for Elite Trailer Parks. (Round your answers to 2 decimal places.)  

What was the increase in retained earnings for the year?  

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Homework Answers

Answer #1

Income Statement

EBIT (Operating Profits)

$3,00,000

Less:

Interest Expense

$38,100

Earnings Before Tax

$2,61,900

Less:

Tax

$69,100

Earnings After Tax (Net Income)

$1,92,800

Less:

Preference Dividend

$29,500

Earnings Available For Shareholders

$1,63,300

(Earnings Available For Common Stock Holders)

Less:

Common Dividend

$36,700

$1,26,600

Earnings Per Share

Earnings Per Share

163300/16400

$9.96

Common Dividends Per Share

Common Dividends Per Share

36700/16400

$2.24

Increase in Retained Earnings

Earnings After Tax (Net Income)

$1,92,800

Less:

Preference Dividend Paid

$29,500

Less:

Common Dividend Paid

$36,700

Increase in Retained Earnings

$1,26,600
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