Question
Selected Financial Statements for Gloria Co appear below: Cash 98,000 Common Stock ($2) par) $600,000 Short-term...
Selected Financial Statements for Gloria Co appear below:
|
Cash |
98,000 |
Common Stock ($2) par) |
$600,000 |
|
Short-term investments |
$45,000 |
Paid In Capital in Excess of Par Value-Common Stock |
$300,000 |
|
Long-term investments |
$425,000 |
Retained Earnings |
$50,000 |
|
Accounts Payable |
$33,000 |
Service Revenue |
$350,000 |
|
Dividends Payable |
$17,000 |
Operating Expenses |
$700,000 |
A.. Calculate the number of issued common shares _______.
B. Assume all of the shares were sold on the same date, what would have been thetotal sales price of the stock _______?
C. What would have been the sales price per share_______ ?
Homework Answers
Answer #1
A) Number of Issued Common Shares = Total Values of Common
Stocks 
Par Value of Stock
= $600,000
$2 = 300,000 common Shares
B) Assuming All the shares (300,000 CS) were sold on the same date, what would have been the total sales price of the stock.............?
Answer. The total Assets of the company is = Cash-$98,0000 +ST Investment-$45,0000 + LT Investment-$425,000
Total Assets= $568,000
Total Liabilities = AP-$33,000 + DP-$17,000 = $50,000
Net Assets of Stockholders = $568,000 - $50,000= $518,000
If all the shares were sold, the sales price would have been $518,000.
C) Answer
The Sale Price per share if all the share were
sold = Stockholders' Equity
No of Common Stock
= $518,000
300,000 = $1.7266
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