Liabilities Current Liabilities $7,500,000 Long-Term Liabilities 9,800,000 Total Liabilities $17,300,000 Stockholders' Equity Preferred Stock Class A...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Liabilities Current Liabilities $7,500,000 Long-Term Liabilities 9,800,000 Total Liabilities $17,300,000 Stockholders' Equity Preferred Stock Class A - issued 70,000 shares 3.5% $700,000 Class B - issued 98,000 shares $0.50 980,000 Common Stock - $5 par: Authorized 1,000,000 shares Issued 270,000 shares 1,350,000 5,540,000 Additional Paid-in-Capital - Common Treasury Stock - 25,000 shares (883,000) Retained Earnings 9,193,000 Total Equity $16,880,000 Total Liabilities and Stockholders' Equity $34,180,000 5) What was the average price the company received for its common stock? 6) What is the average price the company paid to repurchase shares of common stock? 7) What reasonable conclusion can you draw from your response to (5) and (6) 8) What might justify your response to (7)? 9) What is the entry if the company declared a dividend of $0.75 on its common stock? 10) Record the payment of the dividend? 11) What is the effect on the accounting equation and the debt ratio if the company borrowed $500,000 to repurchase additional shares? 12) What is the effect on the accounting equation and the debt ratio if the company sold additional preferred stock? Liabilities Current Liabilities $7,500,000 Long-Term Liabilities 9,800,000 Total Liabilities $17,300,000 Stockholders' Equity Preferred Stock Class A - issued 70,000 shares 3.5% $700,000 Class B - issued 98,000 shares $0.50 980,000 Common Stock - $5 par: Authorized 1,000,000 shares Issued 270,000 shares 1,350,000 5,540,000 Additional Paid-in-Capital - Common Treasury Stock - 25,000 shares (883,000) Retained Earnings 9,193,000 Total Equity $16,880,000 Total Liabilities and Stockholders' Equity $34,180,000 5) What was the average price the company received for its common stock? 6) What is the average price the company paid to repurchase shares of common stock? 7) What reasonable conclusion can you draw from your response to (5) and (6) 8) What might justify your response to (7)? 9) What is the entry if the company declared a dividend of $0.75 on its common stock? 10) Record the payment of the dividend? 11) What is the effect on the accounting equation and the debt ratio if the company borrowed $500,000 to repurchase additional shares? 12) What is the effect on the accounting equation and the debt ratio if the company sold additional preferred stock? Liabilities Current Liabilities $7,500,000 Long-Term Liabilities 9,800,000 Total Liabilities $17,300,000 Stockholders' Equity Preferred Stock Class A - issued 70,000 shares 3.5% $700,000 Class B - issued 98,000 shares $0.50 980,000 Common Stock - $5 par: Authorized 1,000,000 shares Issued 270,000 shares 1,350,000 5,540,000 Additional Paid-in-Capital - Common Treasury Stock - 25,000 shares (883,000) Retained Earnings 9,193,000 Total Equity $16,880,000 Total Liabilities and Stockholders' Equity $34,180,000 5) What was the average price the company received for its common stock? 6) What is the average price the company paid to repurchase shares of common stock? 7) What reasonable conclusion can you draw from your response to (5) and (6) 8) What might justify your response to (7)? 9) What is the entry if the company declared a dividend of $0.75 on its common stock? 10) Record the payment of the dividend? 11) What is the effect on the accounting equation and the debt ratio if the company borrowed $500,000 to repurchase additional shares? 12) What is the effect on the accounting equation and the debt ratio if the company sold additional preferred stock? Liabilities Current Liabilities $7,500,000 Long-Term Liabilities 9,800,000 Total Liabilities $17,300,000 Stockholders' Equity Preferred Stock Class A - issued 70,000 shares 3.5% $700,000 Class B - issued 98,000 shares $0.50 980,000 Common Stock - $5 par: Authorized 1,000,000 shares Issued 270,000 shares 1,350,000 5,540,000 Additional Paid-in-Capital - Common Treasury Stock - 25,000 shares (883,000) Retained Earnings 9,193,000 Total Equity $16,880,000 Total Liabilities and Stockholders' Equity $34,180,000 5) What was the average price the company received for its common stock? 6) What is the average price the company paid to repurchase shares of common stock? 7) What reasonable conclusion can you draw from your response to (5) and (6) 8) What might justify your response to (7)? 9) What is the entry if the company declared a dividend of $0.75 on its common stock? 10) Record the payment of the dividend? 11) What is the effect on the accounting equation and the debt ratio if the company borrowed $500,000 to repurchase additional shares? 12) What is the effect on the accounting equation and the debt ratio if the company sold additional preferred stock? Liabilities Current Liabilities $7,500,000 Long-Term Liabilities 9,800,000 Total Liabilities $17,300,000 Stockholders' Equity Preferred Stock Class A - issued 70,000 shares 3.5% $700,000 Class B - issued 98,000 shares $0.50 980,000 Common Stock - $5 par: Authorized 1,000,000 shares Issued 270,000 shares 1,350,000 5,540,000 Additional Paid-in-Capital - Common Treasury Stock - 25,000 shares (883,000) Retained Earnings 9,193,000 Total Equity $16,880,000 Total Liabilities and Stockholders' Equity $34,180,000 5) What was the average price the company received for its common stock? 6) What is the average price the company paid to repurchase shares of common stock? 7) What reasonable conclusion can you draw from your response to (5) and (6) 8) What might justify your response to (7)? 9) What is the entry if the company declared a dividend of $0.75 on its common stock? 10) Record the payment of the dividend? 11) What is the effect on the accounting equation and the debt ratio if the company borrowed $500,000 to repurchase additional shares? 12) What is the effect on the accounting equation and the debt ratio if the company sold additional preferred stock? Liabilities Current Liabilities $7,500,000 Long-Term Liabilities 9,800,000 Total Liabilities $17,300,000 Stockholders' Equity Preferred Stock Class A - issued 70,000 shares 3.5% $700,000 Class B - issued 98,000 shares $0.50 980,000 Common Stock - $5 par: Authorized 1,000,000 shares Issued 270,000 shares 1,350,000 5,540,000 Additional Paid-in-Capital - Common Treasury Stock - 25,000 shares (883,000) Retained Earnings 9,193,000 Total Equity $16,880,000 Total Liabilities and Stockholders' Equity $34,180,000 5) What was the average price the company received for its common stock? 6) What is the average price the company paid to repurchase shares of common stock? 7) What reasonable conclusion can you draw from your response to (5) and (6) 8) What might justify your response to (7)? 9) What is the entry if the company declared a dividend of $0.75 on its common stock? 10) Record the payment of the dividend? 11) What is the effect on the accounting equation and the debt ratio if the company borrowed $500,000 to repurchase additional shares? 12) What is the effect on the accounting equation and the debt ratio if the company sold additional preferred stock?
Expert Answer:
Related Book For
Business Statistics A First Course
ISBN: 978-0321979018
7th edition
Authors: David M. Levine, Kathryn A. Szabat, David F. Stephan
Posted Date:
Students also viewed these accounting questions
-
What was the average price of a room at two star, three star, and four star hotels around the world during the first half of 2013? The file Hotel Prices contains the prices in English pounds, (about...
-
What was the average price of a room at two-star, three-star, and four-star hotels in cities around the world in 2009? The file contains the prices in English pounds (about US $1.57 as of October...
-
What was the average price of a room at two-star, three-star, and four-star hotels in cities around the world in 2011? The file contains the prices in English pounds Complete the following for...
-
Use the test of your choice to determine whether the following series converge. 1 + 1.3 1 3.5 + 1 5.7
-
It takes 45.66 mL of 0.1126 M HBr to titrate 25.00 mL of Ca(OH)2 to its equivalence point. What is the original concentration of the Ca(OH)2 solution?
-
Explain the meaning of capital maintenance.
-
A pair of random variables has the circular normal distribution if their joint density is given by \[\begin{aligned}& f\left(x_{1}, x_{2} ight) \\& \quad=\frac{1}{2 \pi \sigma^{2}}...
-
Consider the entrepreneur described in Section 14.1 (and referenced in Tables 14.114.3). Suppose she funds the project by borrowing $750 rather than $500. a. According to MM Proposition I, what is...
-
What a is the duties and responsibilities of the United States Army Garrison (USAG). How does USAG operate? How are tasks/work projects accomplished within USAG? What are the factors that are...
-
The Ploughman family owns and operates a 640-acre farm that has been in the family for several generations. The Ploughmans always have had to work hard to make a decent living from the farm and have...
-
(a) ABC Bank offers a one-year loan with an 8% interest rate, charges a 0.30% loan origination fee, imposes a 5% compensating balance requirement, and must hold a 6% reserve requirement at the...
-
Why was the Bretton Woods system of pegged yet adjustable exchange rates reasonably successful until 1958 and increasingly unstable thereafter?
-
What do you understand by the terms budget and budgetary control? What are the advantages of budgetary control?
-
Why did the Argentine currency board collapse whereas Hong Kong has been able to hold on to its fixed exchange rate against the U.S. dollar?
-
What are exchange controls on current account transactions? How do they differ from controls on capital account transactions? Which ones were the more important in ensuring the stability of the...
-
What is the difference between a currency board and dollarization?
-
X-3 Identify restrictions on the domain of f(x)= X+2 X-3
-
Find the radius of convergence of? 1.2.3 1.3.5 (2n-1) r2n+1 -1
-
The fill amount of bottles of a soft drink is normally distributed, with a mean of 2.0 liters and a standard deviation of 0.05 liter. If you select a random sample of 25 bottles, what is the...
-
Profitability remains a challenge for banks and thrifts with less than $ 2 billion of assets. The business problem facing a bank analyst relates to the factors that affect return on assets (ROA), an...
-
A Pew Research Center survey found that social networking is popular in many nations around the world. The file Global Social Media contains the level of social media networking (measured as the...
-
What are the functional requirements for this chapter? Are they the BOs for the pattern?
-
Is the word propaganda a specific term or is it too general to be used in an array of different contexts.
-
List some BOs for this term and define each one of them in your own words.
Study smarter with the SolutionInn App