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Module 5 Problem-Solution Assignment

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Question;Module;5 Problem-Solution Assignment;Problem;1;On;January 1, 2010 Boxer Company had 110,000 share of common stock which was;outstanding. During 2010 the following transactions took place;? April 1- Repurchased 2000 shares which was accounted for;as Treasury Stock;? August 30-Sold all the treasury shares;? December 1-Sold 10,000 shares for cash;? December 31-Reported Net Income in the amount of $200,000;? Paid preferred dividends of 20,000;These transactions occurred in 2011;January 15;Declared and then issued at 20% stock dividend;December 31: Boxer;Company reported net income in the amount of $238,500;Requirements;1 Calculate Boxer Company?s Basic EPS for a simple capital structure for;the both years that are to be presented in comparative financial statements.;The preferred dividends will be applied to both years calculation of earnings;per share. Be mindful that stock;dividends need to be restated as if it happened at the beginning of the year.;You will need to computer the Weighted Average Shares to solve for this problem;Problem;2;Carmen;Company reported 557.5 million in net income in 2010. Then on January 1, 2010;the company had 600 million shares of common stock outstanding. On April 1;2010 34 million shares of common stock were sold for cash. On June 1, 2010;Carmen Company?s stock split 2 for 1. On July 2010, 9 million shares were reacquired as treasury;stock. Be mindful that you need to restate the stock split as if it happened at the beginning of the year. You will need compute the Weighted Average;Shares Outstanding to solve for the Basic EPS.;Requirements;2 Take the information in Problem 2;and compute Carmen Company?s Earnings per Share for the year ended December 31;2010.

 

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