Problem 1:
Arrange the following items in proper balance sheet presentation (Be sure to list the assets in order of their liquidity. Input all amounts as positive values. Omit the "tiny_mce_markerquot; sign in your response):
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Accumulated depreciation
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$
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347,000
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Retained earnings
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46,000
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Cash
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14,000
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Bonds payable
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137,000
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Accounts receivable
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51,000
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Plant and equipment-original cost
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668,000
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Accounts payable
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38,000
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Allowance for bad debts
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6,000
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Common stock, $1 par, 100,000 shares outstanding
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100,000
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Inventory
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71,000
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Preferred stock, $52 par, 1,000 shares outstanding
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52,000
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Marketable securities
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28,000
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Investments
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24,000
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Notes payable
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39,000
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Capital paid in excess of par (common stock)
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91,000
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Problem 2
Okra Snack Delights, Inc., has an operating profit of $241,000. Interest expense for the year was $35,800; preferred dividends paid were $34,100; and common dividends paid were $39,600. The tax was $61,400. The firm has 23,700 shares of common stock outstanding.
(a) Calculate the earnings per share and the common dividends per share.
Earnings per share
Common dividends per share
(b) What was the increase in retained earnings for the year?
Increase in retained earnings
Problem 3
Quantum Technology had $644,000 of retained earnings on December 31, 2010. The company paid common dividends of $30,100 in 2010 and had retained earnings of $524,000 on December 31, 2009.
(a) How much did Quantum Technology earn during 2010?
Earnings available to common stockholders
(b) What would earnings per share be if 42,700 shares of common stock were outstanding?