Question
J. Bartley Pools Inc. reported the following in its financial statements for the quarter ended March...
J. Bartley Pools Inc. reported the following in its financial
statements for the quarter ended March 31, 2014.
| December 31, 2013 |
March 31, 2014 |
|||||
| Common shares (no par value; 55,000 shares outstanding) | $ | 55,000 | $ | 55,000 | ||
| Contributed surplus | 32,500 | 32,500 | ||||
| Retained earnings | 22,500 | 22,500 | ||||
| Total shareholders' equity | $ | 110,000 | $ | 110,000 | ||
During the quarter ended March 31, 2014, Bartley reported Net
Income of $8,250 and declared and paid cash dividends totalling
$8,250.
Required:
1. Calculate earnings per share (EPS) and return on equity
(ROE) for the quarter ended March 31, 2014. (Round your
Earnings per share answer to 2 decimal place.)
| Earnings per share | ||
| Return on equity | % |
2. Assume that Bartley repurchases 10,000 of its
common shares at a price of $2.25 per share on April 1, 2014. Also
assume that during the quarter ended June 30, 2014, Bartley
reported Net Income of $8,250 and declared and paid cash dividends
totalling $8,250. Calculate earnings per share (EPS) and return on
equity (ROE) for the quarter ended June 30, 2014
| Earnings per share | ||
| Return on Equity | % |
. (Round "Earnings per share" to 3 decimal places and "Return on equity" to 2 decimal place.)
3. Based on your calculations in requirements 1 and 2, what can you conclude about the impact of a share repurchase on EPS and ROE? \
| By repurchasing shares, a company can ________ both its EPS and ROE |
Homework Answers
Answer #1
Not the answer you're looking for?
Similar Questions
For the year ended December 31, 2021, Norstar Industries reported net income of $965,000. At January...
For the year ended December 31, 2021, Norstar Industries
reported net income of $965,000. At January 1, 2021, the company
had 1,070,000 common shares outstanding. The following changes in
the number of shares occurred during 2021:
Apr.
30
Sold 85,000 shares in a public offering.
May
24
Declared and distributed a 5% stock dividend.
June
1
Issued 96,000 shares as part of the consideration for the
purchase of assets from a subsidiary.
Required:
Compute Norstar's earnings per share for the...
For the year ended December 31, 2021, Norstar Industries reported net income of $950,000. At January...
For the year ended December 31, 2021, Norstar Industries
reported net income of $950,000. At January 1, 2021, the company
had 1,010,000 common shares outstanding. The following changes in
the number of shares occurred during 2021:
Apr.
30
Sold 70,000 shares in a public offering.
May
24
Declared and distributed a 5% stock dividend.
June
1
Issued 78,000 shares as part of the consideration for the
purchase of assets from a subsidiary.
Required:
Compute Norstar's earnings per share for the...
For the year ended December 31, 2021, Norstar Industries reported net income of $655,000. At January...
For the year ended December 31, 2021, Norstar Industries
reported net income of $655,000. At January 1, 2021, the company
had 900,000 common shares outstanding. The following changes in the
number of shares occurred during 2021
: Apr. 30 Sold 60,000 shares in a public offering.
May 24 Declared and distributed a 5% stock dividend.
June 1 Issued 72,000 shares as part of the consideration for the
purchase of assets from a subsidiary.
Required: Compute Norstar's earnings per share for...
Use the following financial statements for Lake of Egypt Marina, Inc. LAKE OF EGYPT MARINA, INC....
Use the following financial statements for Lake of Egypt Marina,
Inc.
LAKE OF EGYPT MARINA, INC.
Balance Sheet as of December 31, 2015 and 2014
(in millions of dollars)
2015
2014
2015
2014
Assets
Liabilities and Equity
Current assets:
Current liabilities:
Cash and marketable
securities
$
96
$
60
Accrued wages and taxes
$
48
$
60
Accounts receivable
88
66
Accounts payable
56
72
Inventory
248
156
Notes payable
64
78
Total
$
432
$
282
Total
$
168...
3. Jet Corporation had the following balances in its stockholders' equity accounts at December 31, 2019:...
3. Jet Corporation had the following balances in its
stockholders' equity accounts at December 31, 2019: Common Stock $5
par, 900,000 shares authorized, 80,000 shares issued, 75,000 shares
outstanding $400,000 Paid-in Capital in Excess of Par, Common Stock
1,600,000 Retained Earnings 900,000 Treasury Stock, 5,000 shares
(125,000) Total stockholders’ equity $2,775,000 The following
transactions occurred during 2020: January 2 Issued 20,000 shares
of common stock for $20 per share. May 10 Declared dividends at
$0.75 per share. June 10 paid...
Use the following financial statements for Lake of Egypt Marina, Inc. LAKE OF EGYPT MARINA, INC....
Use the following financial statements for Lake of Egypt Marina,
Inc.
LAKE OF EGYPT MARINA, INC.
Balance Sheet as of December 31, 2015 and 2014
(in millions of dollars)
2015
2014
2015
2014
Assets
Liabilities and Equity
Current assets:
Current liabilities:
Cash and marketable securities
$
50
$
56
Accrued wages and taxes
$
50
$
48
Accounts receivable
60
52
Accounts payable
55
44
Inventory
205
96
Notes payable
60
40
Total
$
315
$
204
Total
$
165...
For the year ended December 31, 2018, Norstar Industries reported net income of $655,000. At January...
For the year ended December 31, 2018, Norstar Industries
reported net income of $655,000. At January 1, 2018, the company
had 900,000 common shares outstanding. The following changes in the
number of shares occurred during 2018:
Apr.
30
Sold 60,000 shares in a public
offering.
May
24
Declared and distributed a 5%
stock dividend.
June
1
Issued 72,000 shares as part of
the consideration for the purchase of assets from a
subsidiary.
Required:
Compute Norstar's earnings per share for...
Understanding EPS Calculations On its Form 10-K for the year ended December 31, 2015, Bank of...
Understanding EPS Calculations
On its Form 10-K for the year ended December 31, 2015, Bank of
America Corp. reported information related to basic earnings per
share.
Fill in the missing information.
Rounding instruction:
Round answer a. to two decimal places.
Round answer b., c., & d. to the nearest million.
Round answer e. to three decimal places.
$ millions, except per share amounts
2015
2014
2013
Net income
$16,388
$4,833
d.
Answer
Preferred stock dividends
$1,483
b.
Answer
$1,349
Net...
Range Energy Corp.’s financial statements for the current year ended December 31, 2017, have been completed...
Range Energy Corp.’s financial statements for the current year
ended December 31, 2017, have been completed and submitted to you
for review. The equity account balances a year ago, at December 31,
2016, are as follows:
Preferred shares, $4.20 non-cumulative, 10,700 shares
authorized,
issued, and outstanding $755,050
Common shares, unlimited shares authorized,
127,000 shares issued and outstanding 1,434,350
Retained earnings 686,295
The only share transactions during 2017 were the declaration
and distribution of a 25,400 common share dividend on July...
Rockwell Inc. reported the following results for the year ended June 30, 2016: Retained earnings, July...
Rockwell Inc. reported the following results for the year ended
June 30, 2016:
Retained earnings, July 1,
2015
$3,799,000
Net income
704,900
Cash dividends declared
101,900
Stock dividends declared
49,300
Prepare a retained earnings statement for the fiscal year ended
June 30, 2016. Refer to the lists of Accounts, Labels, and Amount
Descriptions provided for the exact wording of the answer choices
for text entries. Enter all amounts as positive numbers. The word
“Less” is not required.
ADVERTISEMENT
Need Online Homework Help?
Get Answers For Free
Most questions answered within 1 hours.
ADVERTISEMENT
Active Questions
asked 14 minutes ago
asked 53 minutes ago
asked 54 minutes ago
asked 56 minutes ago
asked 1 hour ago
asked 1 hour ago
asked 1 hour ago
asked 1 hour ago
asked 1 hour ago
asked 1 hour ago
asked 2 hours ago
asked 2 hours ago