You have now learned about the following financial statements issued by corporations: balance sheet, income statement, statement

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You have now learned about the following financial statements issued by corporations: balance sheet, income statement, statement of retained earnings, statement of stockholders’ equity, and statement of cash flows. Listed below are various items frequently of interest to a corporation’s owners, potential investors, and creditors, among others. You are to specify which of the above corporate financial statements, if any, reports the desired information. If the listed item is not reported in any formal financial statement issued by a corporation, indicate an appropriate source for the desired information.

a. Number of shares of stock outstanding as of year-end.

b. Total dollar amount of cash dividends declared during the current year.

c. Market value per share at balance sheet date.

d. Cumulative dollar effect of an accounting error made in a previous year.

e. Detailed disclosure of why the number of shares of stock outstanding at the end of the cur-rent year is greater than the number of shares of stock outstanding at the end of the prior year.

f. Earnings per share of common stock.

g. Book value per share.

h. Price-earnings (p/e) ratio.

i. The total amount the corporation paid to buy back shares of its own stock, which it now holds.


Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial...
Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...
Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...
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Financial and Managerial Accounting the basis for business decisions

ISBN: 978-0078111044

16th edition

Authors: Jan Williams, Susan Haka, Mark Bettner, Joseph Carcello

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