Preparing a Balance Sheet, Computing Net Income, and
Understanding Equity Transactions
At the beginning of 2015,...
Preparing a Balance Sheet, Computing Net Income, and
Understanding Equity Transactions
At the beginning of 2015, Barth Company reported the following
balance sheet.
Assets
Liabilities
Cash
$3,600
Accounts Payable
$9,000
Accounts Receivable
11,025
Equity
Equipment
7,500
Common Stock
35,625
Land
37,500
Retained Earnings
15,000
Total Assets
$59,625
Total Liabilities and Equity
$59,625
Required
a. At the end of 2015, Barth Company reported the following assets
and liabilities: Cash, $6,600; Accounts Receivable, $13,800;
Equipment, $6,750; Land, $37,500; and Accounts Payable, $5,625....
Which of the following statements is CORRECT?
a. Since companies can deduct
dividends paid but not...
Which of the following statements is CORRECT?
a. Since companies can deduct
dividends paid but not interest paid, our tax system favors the use
of equity financing over debt financing, and this causes companies'
debt ratios to be lower than they would be if interest and
dividends were both deductible.
b. The maximum federal tax rate on
corporate income in 2015 was 50%.
c. Interest paid to an individual
is counted as income for federal tax purposes and taxed at...
The company has net income of $30,000 for the year and paid
dividends of $40,000. At...
The company has net income of $30,000 for the year and paid
dividends of $40,000. At the beginning of the year, the company had
common stock of $50,000, paid-in surplus of $60,000, and retained
earnings of $70,000. At the end of the year, the firm had total
equity of $170,000. What is the amount of the net new equity raised
during the year?
For the year ended December 31, 2020, Transformers Inc. reported
the following: Net income $300,000 Preferred...
For the year ended December 31, 2020, Transformers Inc. reported
the following: Net income $300,000 Preferred dividends declared
50,000 Common dividend declared 10,000 Unrealized holding loss, net
of tax 5,000 Retained earnings, beginning balance 400,000 Common
stock 200,000 Accumulated Other Comprehensive Income, Beginning
Balance 25,000 What would Transformers report as the ending balance
of Retained Earnings? Select one: a. $695,000 b. $645,000 c.
$665,000 d. $640,000
1)
Which of the following taxes would be deducted in determining an
employee's net pay?
a....
1)
Which of the following taxes would be deducted in determining an
employee's net pay?
a.
Federal Income Taxes
b.
Medicare Taxes
c.
Social Security Taxes
d.
all of the above
2_
If beginning owner’s equity was $65,000, ending owner’s equity
is $43,000, and the owner's withdrawals were $16,000, the amount of
net income or net loss was:
a.net
income of $37,000
b.
net income of $8,000
c.
net loss of $22,000
d.net
loss of $6,000
3_
The Cash Payments...
Mike Corporation, which owns stock in Red Corporation, had net
operating income of $125,000 for the...
Mike Corporation, which owns stock in Red Corporation, had net
operating income of $125,000 for the year. Red pays Mike a dividend
of $100,000. Mike takes a dividends received deduction of $80,000.
Which of the following statements is correct?
a. Pearl owns less than 20% of Opal Corporation.
b. None of the above
c. Pearl owns more than 80% of Opal Corporation.
d. Pearl owns 20% or more, but less than 80% of Opal
Corporation.
1. Rock Springs Mountain Company has beginning retained earnings
of $600,000, earns a net income of...
1. Rock Springs Mountain Company has beginning retained earnings
of $600,000, earns a net income of $100,000, and pays dividends of
$12,000 during the period.
The balance in Rock Springs' Mountain’s ending retained earnings
is:
A. $712,000
B. $688,000
C. $700,000
D. $488,000
2. Henrietta Company reported total stockholders’ equity of
$870,000 on its Dec 31, 2018, balance sheet. The following
information is available for the year ended Dec 31, 2019:
Revenues
$1,260,000
Expenses
990,000
Assets on Dec. 31, 2019...
Based on the following financial data Net income: $5,000,000
Sales: $25,000,000 Assets: $10,000,000 Dividends: $4,000,000
Equity:...
Based on the following financial data Net income: $5,000,000
Sales: $25,000,000 Assets: $10,000,000 Dividends: $4,000,000
Equity: $2,000,000 Liabilities: $8,000,000 What is the SGR?
Common Stockholders' Profitability Analysis
A company reports the following:
Net income
$120,000
Preferred dividends
4,800
Average...
Common Stockholders' Profitability Analysis
A company reports the following:
Net income
$120,000
Preferred dividends
4,800
Average stockholders' equity
975,610
Average common stockholders' equity
587,755
Determine (a) the the return on stockholders’ equity and (b) the
return on common stockholders’ equity. If required, round your
percentages to one decimal place.
a. The rate earned on stockholders'
equity
%
b. The rate earned on common stockholders'
equity
%
Earnings per Share and Price-Earnings Ratio
A company reports the following:
Net income
$404,500...