Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Basic Finance Expert

problem: Comprehensive problem find missing amounts, net income, issue price, & dividends; interpret stock dividend and split Bacon, Inc., has the following owner's equity section in its May 31, 2009, comparative balance sheets:

 

May 31, 2009

April 30, 2009

Paid-In capital:

Preferred stock, $120 par value, 8%, cumulative, 100,000 shares authorized 80,000 shares issued and outstanding.................

 

 

$9,600,000

 

 

$9,600,000

Common stock, $6 par value, 600,000 shares authorized, 400,000 and 380,000 shares issued, respectively...................................

 

 

?

 

 

2,280,000

Additional paid-in capital..............................................................

16,800,000

16,480,000

Retained earnings ..............................................................................

13,900,000

13,624,000

Less: Treasury common stock, at cost; 18,000 shares and 17,000 shares, respectively .............................................................................................

 

(1,660,000)

 

(1,632,000)

Total stockholders' equity ....................................................................

mce_markernbsp;         ?   

$40,352,000

Required:

[A] Compute the amount that should be shown on the balance sheet for common stock at May 31, 2009.

[B] The only transaction affecting additional paid-in capital during the month of May was the sale of additional common stock. At what rate per share were the additional shares sold?

[C] Find the average cost per share of the common stock purchased for the treasury during the month?

[D] During May, dividends on preferred stock equal to one-half of the 2009 dividend requirement were declared and paid. There were no common dividends declared or paid in May. Compute net income for May.

[E] Suppose that on June 1 the board of directors declared a cash dividend of $.21 per share on the outstanding shares of common. The dividend will be payable on July 15 to stockholders of record on June 15.

(a) Compute the total amount of the dividend.

(b) Describe the impact this action will have on the June 30 balance sheet and on the income statement for June.

[F] Suppose that on June 1 the market value of the common stock was $36 per share and that the board of directors declared a 6 percent stock dividend on the issued shares of common stock. Use the horizontal model [or prepare the entry] to show the issuance of the stock dividend.

[G] Suppose that instead of the stock dividend described in f, the board of directors authorized a 2-for-1 stock split on June 1 when the market rate of the common stock was $36 per share.

(a) What will be the par price, & how many shares of common stock will be authorized after the split?

(b) find out the market price per share of common stock after the split?

(c) How many shares of common stock will be in the treasury after the split?

[H] By how much will total stockholders' equity change as a result of;

(a) The stock dividend describeed in part f?

(b) The stock split describeed in part g?

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M920363
  • Price:- $40

Guranteed 36 Hours Delivery, In Price:- $40

Have any Question? 


Related Questions in Basic Finance

1 what changes to disaster recovery programs were being

1. What changes to disaster recovery programs were being proposed in 2009? 2. Investigate how civil defense and emergency management evolved in your state or city. Look at such factors as when it was created, its origina ...

Comprehensive problemuse what you have learned about the

Comprehensive Problem Use what you have learned about the time value of money to analyze each of the following decisions: Decision #1: Which set of Cash Flows is worth more now? Assume that your grandmother wants to give ...

Determine the mass transfer coefficient kc for the transfer

Determine the mass transfer coefficient, kc, for the transfer from a glucose sphere, 0.3 cm in diameter, which is sub merged in a 25°C aqueous stream flowing at a bulk velocity of 0.15 m/s. The mass diffusivity of glucos ...

Mm proposition i with taxesthe maxwell company is financed

MM Proposition I with Taxes The Maxwell Company is financed entirely with equity. The company is considering a loan of $1.72 million. The loan will be repaid in equal installments over the next two years, and it has an i ...

1 what is noise trading2 what is herd behavior and how can

1. What is noise trading? 2. What is herd behavior, and how can it lead to a bubble in a financial market? 3. Some mutual funds have started behavioral finance funds that attempt to use insights from behavioral finance i ...

Explains how a portion of your income is withheld

Explains how a portion of your income is withheld throughout the year by your employer, as required by the Internal Revenue Service (IRS). You may have some flexibility on how much income can be withheld. A psychological ...

Modify the cpl lagrangian heuristic to account for the case

Modify the CPL Lagrangian heuristic to account for the case where the demand is indivisible (i.e. the demand of any successor node must be satisfied by a single facility). Is the modified heuristic still time-polynomial? ...

1 what distinguishes a spot market from a derivatives

1. What distinguishes a spot market from a derivatives market? What distinguishes the money market from the capital market? How does the efficiency of a market affect an investor's strategy? 2. The following is an excerp ...

1 what is the difference between real property and personal

1. What is the difference between real property and personal property? 2. What is meant by an estate? 3. How can a leased fee estate have a value that could be transferred to another party? 4. What is an abstract of titl ...

Why do individual bolts relax a bit when first tightened

Why do individual bolts relax a bit when first tightened? Name several factors that can increase the relaxation ? Which will tend to loose more preload after initial tightening, a short bolt or a long bolt? 8. What are t ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

WalMart Identification of theory and critical discussion

Drawing on the prescribed text and/or relevant academic literature, produce a paper which discusses the nature of group

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro