A firms balance sheet has the following entries:
Cash 10, 000, 000
total liabilities 30, 000,...
A firms balance sheet has the following entries:
Cash 10, 000, 000
total liabilities 30, 000, 000
common stock (50 par 2,000, 000 shares outstanding) 10, 000,
000
Additional paid in capital 3, 000, 000
retained earnings: 42, 000, 000
What will be each of these balance sheet entries after:
A. A three for one stock split
B. a 1.25 per share cash dividend
C. A 10 % stock dividend (current price of stock 15 a share)
Firm A had the following selected items on its balance
sheet:
Cash: 28, 000, 000
Common...
Firm A had the following selected items on its balance
sheet:
Cash: 28, 000, 000
Common stock (50 par, 2, 000, 000 shares outstanding) 100,
000,000
Additional paid in capital 10, 000, 000
Retained earnings 62, 000, 000
HOw would each of these accounts look after:
A. A cash dividend of 1 dollar a share
B A 5 percent stock dividend (fair market value is 100 dollars a
share)
C. A one for two reverse split
DEF Corporation has the following share capital and retained
earnings balances at December 31, 2018.
&nb
DEF Corporation has the following share capital and retained
earnings balances at December 31, 2018.
Issued share
capital
2,000,000 common
shares
$ 10,000,000
Retained
earnings
90,000,000
$ 100,000,000
i)If a 5% stock dividend is issued when the shares are trading
for $ 10 per share, prepare the journal entry to record the stock
dividend
ii)If a 2 for 1 stock split is announced, prepare the journal
entry to record the stock split.
iii)If DEF...
Market Value Capital Structure
Suppose the Schoof Company has this book value balance
sheet:
Current assets...
Market Value Capital Structure
Suppose the Schoof Company has this book value balance
sheet:
Current assets
$30,000,000
Current liabilities
$20,000,000
Fixed assets
70,000,000
Notes payable
$10,000,000
Long-term debt
30,000,000
Common stock (1 million shares)
1,000,000
Retained earnings
39,000,000
Total assets
$100,000,000
Total liabilities and equity
$100,000,000
The notes payable are to banks, and the interest rate on this
debt is 11%, the same as the rate on new bank loans. These bank
loans are not used for seasonal financing but...
Suppose the Schoof Company has this book value balance
sheet:
Current assets
$30,000,000
Current liabilities
$20,000,000...
Suppose the Schoof Company has this book value balance
sheet:
Current assets
$30,000,000
Current liabilities
$20,000,000
Fixed assets
70,000,000
Notes payable
$10,000,000
Long-term debt
30,000,000
Common stock (1 million shares)
1,000,000
Retained earnings
39,000,000
Total assets
$100,000,000
Total liabilities and equity
$100,000,000
The notes payable are to banks, and the interest rate on this
debt is 10%, the same as the rate on new bank loans. These bank
loans are not used for seasonal financing but instead are part of...
Suppose the Schoof Company has this book value balance sheet:
Current assets $30,000,000 Current liabilities $20,000,000...
Suppose the Schoof Company has this book value balance sheet:
Current assets $30,000,000 Current liabilities $20,000,000 Notes
payable 10,000,000 Fixed assets 70,000,000 Long-term debt
30,000,000 Common stock (1 million shares) 1,000,000 Retained
earnings 39,000,000 Total assets $100,000,000 Total liabilities and
equity $100,000,000 The notes payable are to banks, and the
interest rate on this debt is 7%, the same as the rate on new bank
loans. These bank loans are not used for seasonal financing but
instead are part of...
Problem 9-16
Market Value Capital Structure
Suppose the Schoof Company has this book value balance
sheet:...
Problem 9-16
Market Value Capital Structure
Suppose the Schoof Company has this book value balance
sheet:
Current assets
$30,000,000
Current liabilities
$20,000,000
Fixed assets
70,000,000
Notes payable
$10,000,000
Long-term debt
30,000,000
Common stock (1 million shares)
1,000,000
Retained earnings
39,000,000
Total assets
$100,000,000
Total liabilities and equity
$100,000,000
The notes payable are to banks, and the interest rate on this
debt is 9%, the same as the rate on new bank loans. These bank
loans are not used for seasonal...
Income
Statement
&nbs
Income
Statement
Balance Sheet
Sales $20,000,000 Assets:
Cost of Goods Sold 8,000,000 Cash $ 5,000,000
12,000,000 Marketable Securities 12,500,000
Selling and Administrative 1,600,000 Accounts Receivable, net
2,500,000
Depreciation 3,000,000 Inventory 30,000,000
7,400,000 Prepaid Expenses 5,000,000
Interest 2,000,000 Plant & Equipment 30,000,000
5,400,000
Taxes (40%) 2,160,000 Total Assets
85,000,000
3,240,000
Common Stock Div. 600,000 Liabilities and
Equity:
$2,640,000 Accounts Payable $20,000,000
Notes
Payable
5,000,000
Accrued Expenses
5,000,000
Bonds
25,000,000
Common
Stock
5,000,000
Capital in Excess of Par 10,000,000
Retained...
Suppose the Schoof Company has this book value balance
sheet:
Current Assets:
$30,000,000
Current Liabili
Suppose the Schoof Company has this book value balance
sheet:
Current Assets:
$30,000,000
Current Liabilities: $20,000,000
Fixed Assets:
$70,000,000
Notes Payable: $10,000,000
Total Assets:
$100,000,000
Long Term Debt: $30,000,000
Common stock (1 million shares): 1,000,000
Retained Earnings: $39,000,000
Total liabilities and equity: $100,000,000
The notes payable are to banks, and the interest rate on this
debt is 10%, the same as the rate on new bank loans. These bank
loans are not used for seasonal financing...
On June 30, 2017, Sharper Corporation’s common stock is priced at
$34.50 per share before any...
On June 30, 2017, Sharper Corporation’s common stock is priced at
$34.50 per share before any stock dividend or split, and the
stockholders’ equity section of its balance sheet appears as
follows.
Common stock—$8 par value, 85,000 shares
authorized, 34,000 shares issued and outstanding
$
272,000
Paid-in capital in excess of par value, common stock
100,000
Retained earnings
372,000
Total stockholders’ equity
$
744,000
1. Assume that the company declares and immediately
distributes a 100% stock dividend. This event is...