35) Marquise Corporation had a return on equity of 18%. The company had net income during the year of $147,000. There were 98,000 shares of common stock outstanding throughout the year and no preferred stock at any time. Calculate average common shareholders’ equity (round to the nearest cent).
36) Lance Corporation had a return on equity of 20%. The company earned net income of $2,500,000 during the year. There were 200,000 shares of common stock outstanding throughout the year and no preferred stock at any time. Calculate average common shareholders’ equity.
37) Ace Electronics has the following information available at the end of the year:
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Dec. 31, this year
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Dec. 31, last year
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Preferred stock, 6%, $100 par, noncumulative
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$100,000
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$ 100,000
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Common stock, $1 par *
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20,000
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10,000
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Additional paid-in capital, common stock
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150,000
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50,000
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Retained earnings
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95,000
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65,000
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Treasury stock (1,000 shares at cost)
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(5,000)
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(5,000)
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Total shareholders equity
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$360,000
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$220,000
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* Additional shares of common stock were issued on July 1 of this year.
Net income was $90,000 this year.
1. What is the total dividend declared by Ace’s board of directors this year?
2. What is the total amount of the dividends declared that belongs to the preferred shareholders?
3. What is the weighted average number of common shares outstanding this year?
4. What is earnings per share this year?
5. What is return on equity this year, rounded to the nearest tenth of a percent?
38) Marquise Corporation had average common shareholders’ equity of $816,667. The company has no preferred stock. Net income for the year was $147,000. Earnings per share was $1.50. Calculate the weighted average number of common shares outstanding during the year.
39) Select the column(s) of the financial statement(s) where each item is most easily found by putting an X in the appropriate column.
SOME ITEMS MAY BE FOUND ON MORE THAN ONE STATEMENT.
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Description:
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Income
Statement
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Statement of Changes in Shareholders' Equity
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Statement of Cash Flows
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Balance
Sheet
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1.
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Dividends declared
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2.
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Dividends paid
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3.
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Dividends payable
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4.
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Common stock issued during the year
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5.
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Proceeds from issuing stock during the year
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6.
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Treasury stock repurchased during the year
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7.
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Cash paid for the purchase of treasury stock during the year
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8.
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Net income
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9.
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Earnings per share
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10.
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par value of common stock
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