Refer to the information for Somerville Company on the previous page. Also, assume that the market price
Question:
Information for Somerville Company
Required:
Round answers to two decimal places.
1. Compute the dividends per share.
2. Compute the dividend yield.
3. Compute the dividend payout ratio.
Transcribed Image Text:
Somerville Company Income Statement For the Year Ended December 31, 2012 Amount Percent Net sales Less: Cost of goods sold 8,281,989 5,383,293 2,898,696 1,323,368 Less: Operating expenses Less: Interest expense Less: Income taxes (40%) Gross margin Operating income Income before taxes Net income 100.0% 65.0 35.0 16.0 19.0 0.6 18.4 7.4 11.0 50,000 10,131 915,197 Includes both stale and federal la xes Includes both stale and federal la xes Somervile Company Statement of Retained Eamings For the Year Ended December 31, 2012 Balance, beginning of period Net income $1,979,155 915,197 2,894,352 80,000) 01,88 2,612,465 Total Less: Preferred dividends Dividends to common stockholders Balance, end of period Somervile Company Comparative Balance Sheets At December 31, 2011 and 2012 2011 2012 Assets Current assets $2,875,000 800,000 939 776 490,000 93,000 $5,197776 $2,580,000 700,000 690,000 260,000 74,261 as Marketable securities Accounts receivable (net) Inventories Other Total current assets $1,575,000 1,348,800 2,23,00 $1,067,315 1,150,000 $ 21715 $6,521,576 Land Building and equipment (net) Total long-term assets Total assets S11/ Liabilities and Stockholders' Equity Current liabilities: Notes payable, short term Accounts payable Current maturity of long-term debt Accrued payables $1,170,127 298484 3,000 200,000 $543,641 101,500 ,0x) 57,780 $ 704,921 Total current liabilities $1,671,61 Bonds payable, 10% 500,000 $7,1/161T 500,000 Total liabilities Stodkholders'equity Preferred stock, $25-par, 8% Common stock, $1.50 par Additional paid-in capital Retained eamings $1,000,000 337,500 2,000,000 2,612,465 $5,949,965 $1,000,000 337,500 2,000,000 1,979,155 A5,os $6,521,576 Total stockholders equity Total liabilities and stockholders equity For common stock only.
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 77% (9 reviews)
1 Dividends per share 201887 225000 shares 08973 or 090 per share Number of common shares 337500...View the full answer
Answered By
GERALD KAMAU
non-plagiarism work, timely work and A++ work
4.40+
6+ Reviews
11+ Question Solved
Related Book For
Cornerstones Of Managerial Accounting
ISBN: 9780538473460
4th Edition
Authors: Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Question Posted:
Students also viewed these Managerial Accounting questions
-
Refer to the information for Somerville Company below. Assume a tax rate of 40%. Required: Round answers to four decimal places. 1. Calculate the average total assets. 2. Calculate the return on...
-
Refer to the information for Somerville Company below. Assume a tax rate of 40%. Information for Somerville Company Required: Round answers to two decimal places. 1. Calculate the average total...
-
Refer to the information for Somerville Company below. Information for Somerville Company Required: Round answers to two decimal places. 1. Calculate the average common stockholders' equity. 2....
-
ME-1" Ltd. acquired 80% equity shares of You-2nd Ltd. on 30/04/2020 for a cost of GHS60,000. At that time the general reserves were GHe6,000 respectively.
-
What is meant by the margin of safety?
-
In what ways does back flush costing alter the accounting for work in process inventory?
-
Are there any cases you can find where a supplemental pleading was allowed because new facts have been alleged? What were the new facts?
-
Two steels are being considered for manufacture of as-forged connecting rods. One is AISI 4340 Cr-Mo-Ni steel capable of being heat-treated to a tensile strength of 260 kpsi. The other is a plain...
-
(a) Define semistrongform market efficiency. (b) Using the evidence discussed in class, explain whether the evidence on the return behavior of 'size based portfolios' and 'booktomarket based...
-
In SCTP, the following is a dump of a DATA chunk in hexadecimal format. 00000015 00000005 0003000A 00000000 48656C6C 6F000000 a. Is this an ordered or unordered chunk? b. Is this the first, the last,...
-
Refer to the information for Somerville Company below. Also, assume that the price per common share for Somerville is $8.10. Information for Somerville Company Required: Compute the price-earnings...
-
Refer to the information for Cuneo Company on the previous page. Information For Cuneo Company Cuneo Company's income statements for the last three years are as follows: Required: 1. Prepare a...
-
Montreal Seating Co., a manufacturer of chairs, had the following data for 2022: Instructions a. Calculate the contribution margin ratio. b. Calculate the break-even point in dollars. c. Calculate...
-
Work in process inventory, May 1 Work in process inventory, May 31 69,000 100% 50% 49,000 100% 30% Materials cost in work in process inventory, May 1 Conversion cost in work in process inventory, May...
-
Cullumber Corporation issues $424,000 of 7%, 5-year bonds on January 1, 2022, at 105. Assuming that the straight-line method is used to amortize the premium, what is the total amount of interest...
-
The initial speed of a body is 5.99 m/s. What is its speed after 2.05 s if it accelerates uniformly at 4.01 m/s? Answer in units of m/s. Answer in units of m/s. part 2 of 2 What is its speed after...
-
Achebe Company started business on January 1 of the current year. At the end of January, the following financial data are available. Calculate Achebe's Total Assets as of the end of January. Total...
-
Watch the following scenario. The victim has notified 9 1 1 . You walking into the kitchen and found her laying there. As a first responder, what first aid steps would you take until EMS arrive and...
-
For the following exercises, use this scenario: The population P of an endangered species habitat for wolves is modeled by the function P(x) = 558/1 + 54.8e 0.462x , where x is given in years. Use...
-
Evaluate each logarithm to four decimal places. log 0.257
-
Jan Shumard, president and general manager of Danbury Company, was concerned about the future of one of the companys largest divisions. The divisions most recent quarterly income statement follows:...
-
Describe the two-stage process for departmental overhead rates.
-
What is meant by product diversity?
-
1. Identifield and explain 3 causes of stress and 3 techniques to overcome stress ? 2. examine worksite stress management programmers more likely to be effective.
-
Bright Books is a bookstore chain established 10 years ago in northern Michigan. Bright Books has had great success in Michigan and Ohio and is beginning to expand into other states. Most recently,...
-
Design a synchronous counter using D flip-flops such that the count sequence of the counter follows the digits in . Each state must be 4-bit. Follow the steps below: (i) (ii) (iii) (iv) 137836...
Study smarter with the SolutionInn App