1.Mayfair Corporation has outstanding 110,000 shares of $1 par value common stock as well as 29,000 shares of 13.5%, $100 par value cumulative preferred stock. At the beginning of the year, the balance in retained earnings was $975,000, and one year's dividends were in arrears. Net income for the current year is $590,000. Compute the balance in retained earnings at the end of the year if Mayfair Corporation pays a dividend of $3.9 per share on its common stock this year.
2. A company had 130,000 shares of common stock outstanding on January 1 and then sold 30,000 additional shares on March 30. Net income for the year was $505,000. What are earnings per share?
3. On January 31, 2009, Village Bank had 340,000 shares of $2 par value common stock outstanding. On that date, the company declared a 12% stock dividend when the market price of the stock was $31 per share. The immediate effect of this dividend upon Village Bank was:
4. Corona Corporation's financial statements for the current year include the following:
| Income from continuing operations (net of taxes) |
$ |
621,800 |
| Prior period adjustment (increase in prior year net income, net of taxes) |
$ |
128,500 |
| Cash dividends paid to preferred stockholders |
$ |
268,440 |
| Gain from discontinued operations (net of taxes) |
$ |
405,016 |
| Extraordinary loss (net of tax benefit) |
$ |
126,400 |
On the basis of this information, net income for the current year is:
5. During the year 2009, Tosco Corporation suffered an $460,000 loss when its factory was destroyed in a flood. Assuming the corporate income tax rate is 26%, what amount will Tosco report as an extraordinary loss on its income statement for 2009? Assume floods are not common in this area.
6. General Corporation was organized on January 1 and issued 350,000 shares of common stock on that date. On July 1, an additional 100,000 shares were issued for cash. Net income for the year was $4,510,000. Net earnings per share amounted to: