Exam 11: Stockholders Equity

Brandies,Inc.reported net income of $5.6 million.At the beginning of the year,6.8 million shares of common stock were outstanding and at the end of the year,7.2 million shares were outstanding.No dividends were declared.The EPS is approximately:

Core Corporation had 400,000 shares of $2 par value common stock authorized.On December 31,2018,there were 200,000 shares issued and outstanding.The market value of its common stock on that date was $100 per share.On January 5,2019,the board of directors declared a five-to-four stock split (i.e. ,a 25% increase in the number of shares). Required: Part a.Briefly explain the how a stock spilt affects the stockholders' equity accounts and the total resources of the company. Part b.Assume that you have 100 shares of Core Corporation common stock.Determine how many shares will you have after the stock split. Part c.Determine how the stock split will impact the number of authorized shares,the number of issued and outstanding shares,and the par value per share. Part d.Determine the total par value of the company's issued and outstanding shares (that is,the balance of the Common Stock account)before the stock split and after the stock split.

On April 30,2018,Marie Claire sold 1,000 shares of her Spectrum Company's common stock to Fountain of the Sun for $16,000.The stock cost Marie Claire $10,000.Spectrum Company's accounting equation:

A stock dividend increases the market price of the company's stock.

A company issued 8% preferred stock with a $100 par value.This means:

Match each term with the appropriate definition.Not all definitions will be used. -Current Dividend Preference

An increase to Rich's Farm's account called Barry Rich,capital would occur when:

An increase in EPS is an indicator of:

All else being equal,if net income decreases:

The statement of stockholder's equity differs from the statement of retained earnings in that the statement of stockholders' equity:

Which of the following below correctly states the sequence of dates related to dividends on common stock?

Sugar Snap Manufacturing has the following information available from its accounting records: The company has no preferred stock.What is the approximate return on equity?

On September 1,Primrose Industries with 100,000 shares of $5 par value common stock and $2,000,000 of Retained Earnings issues a 2-for-1 stock split.The market price of the stock on that date is $24 per share.Which of the following statements is correct concerning this stock split?

Walter Co.declared a cash dividend.On the payment date of the dividend,its:

A corporate charter specifies that the company may sell up to 20 million shares of stock.The company sells 12 million shares to investors and later buys back 3 million shares.The number of authorized shares after these transactions are accounted for is:

Features of common stock usually include all of the following except:

A major advantage of the corporate form of ownership is:

Mr.Big received a $5,000 payment from his sole proprietorship,Buy & Large,for work performed by Mr.Big.The payment should be recorded with a $5,000:

Treasury stock is reported in the:

Mountain View Co.buys back 3,000 shares of its $10 par value common stock from investors at $126 per share.This stock repurchase would be recorded with a debit to: