Question

Question 13 (5 points) At fiscal year end, December 31, 2018, Somerset Corporation had total stockholders' equity of $3,200,000. On FY 2018 year end, Somerset Corporation had Common Stock account of $1,350,000 of $10 par value common stock and Preferred Stock account of $100,000 of $100 par value. There was no treasury stock. The preferred stock was noncumulative and had a call price of $103. Use this information to determine the book value per share of Common Stock as of end of the FY 2018: (Round your answer to the nearest penny.) Your Answer: Answer

Answer 1

13	$24.47
	Computation for the book value of share
	Total shareholders' Equity	$3,200,000
	Less: Callable price of preferred stock	$103,000
	Total Book Value of Common Stock (a)	$3,303,000
	Number of equity shares ($1,350,000/$10) (b)	135,000
	Book Value Per Share (a/b)	$24.47
14	53.7 days
	Number of days in inventory = (Average Inventory/COGS) x 365 days
	Number of days in inventory = [(44,000+56,000)/2]/340,000 x 365 days
	Number of days in inventory = (50,000/340,000) x 365 days
	Number of days in inventory = 53.7 days