Exam 14: Corporations: Dividends, Retained Earnings, and Income Reporting

Cooney Inc. reported net income of $540000 during 2017 and paid dividends of $52000 on common stock. It also has 20000 shares of 6% $100 par value preferred stock outstanding. Common stockholders' equity was $2400000 on January 1 2017 and $3200000 on December 31 2017. The company's return on common stockholders' equity for 2017 is:

The following information is available for Grey Goose Inc.: Beginning retained earnings \ 600,000 Cash dividends declared 60,000 Net income for 2017 120,000 Stock dividend declared 15,000 Understatement of last year's depreciation expense 30,000 Instructions Based on the preceding information prepare a retained earnings statement for 2017.

Kramer Co. had retained earnings of $30000 on the balance sheet but disclosed in the footnotes that $6000 of retained earnings was restricted for building expansion and $2000 was restricted for bond repayments. Cash of $4000 had been set aside for the plant expansion. How much of retained earnings is available for dividends?

Burnell Inc. has 5000 shares of 4% $50 par value cumulative preferred stock and 100000 shares of $1 par value common stock outstanding at December 31 2016 and December 31 2015. The board of directors declared and paid a $8000 dividend in 2016. In 2017 $30000 of dividends are declared and paid. What are the dividends received by the preferred and common shareholders in 2017? Preferred Common A) \ 18,000 \ 12,000 B) \ 15,000 \ 15,000 C) \ 12,000 \ 18,000 D) \ 10,000 \ 20,000

The following information is available for Richmond Hill Corporation: Beginning common stockholders' equity \ 700,000 Dividends paid to common stockholders 50,000 Dividends paid to preferred stockholders 30,000 Ending common stockholders' equity 1,000,000 Net income 200,000 Instructions Based on the preceding information calculate return on common stockholders' equity.

The date on which a cash dividend becomes a binding legal obligation is on the

Prior period adjustments

Each of the following statements is correct except that earnings per share is reported

A corporation differs from a proprietorship and a partnership in that

Which of the following is not a significant date with respect to dividends?