Windsor Inc. began operations in January 2018 and reported the
following results for each of its 3 years of operations.
2018 |
$237,000 net loss |
2019 |
$42,000 net loss |
2020 |
$860,000 net income |
At December 31, 2020, Windsor Inc. capital accounts were as
follows.
8% cumulative preferred stock, par value $100; authorized, issued, | ||
and outstanding 5,200 shares | $520,000 | |
Common stock, par value $1.00; authorized 1,000,000 shares; | ||
issued and outstanding 759,000 shares | $759,000 |
Windsor Inc. has never paid a cash or stock dividend. There has
been no change in the capital accounts since Windsor began
operations. The state law permits dividends only from retained
earnings.
(a) Compute the book value of the common stock at
December 31, 2020. (Round answers to 2 decimal places,
e.g. $38.50.)
Book value per share | $enter a dollar amount of the book value of the common stock at December 31, 2020 rounded to 2 decimal places |
(b) Compute the book value of the common stock at
December 31, 2020, assuming that the preferred stock has a
liquidating value of $107 per share. (Round answers to
2 decimal places, e.g. $38.50.)
Book value per share | $enter the book value per share in dollars rounded to 2 decimal places |
Windsor Inc. began operations in January 2018 and reported the following results for each of its...
Martinez Inc. began operations in January 2018 and reported the
following results for each of its 3 years of operations.
2018
$268,000 net loss
2019
$38,000 net loss
2020
$775,000 net income
At December 31, 2020, Martinez Inc. capital accounts were as
follows.
8% cumulative preferred stock, par value $100; authorized,
issued,
and outstanding 4,500 shares
$450,000
Common stock, par value $1.00; authorized 1,000,000
shares;
issued and outstanding 741,000
shares
$741,000
Martinez Inc. has never paid a cash or stock...
Vaughn Inc. began operations in January 2018 and reported the following results for each of its 3 years of operations. 2018 $274,000 net loss 2019 $44,000 net loss 2020 $880,000 net income At December 31, 2020, Vaughn Inc. capital accounts were as follows. 8% cumulative preferred stock, par value $100; authorized, issued, and outstanding 5,100 shares $510,000 Common stock, par value $1.00; authorized 1,000,000 shares; issued and outstanding 702,000 shares $702,000 Vaughn Inc. has never paid a cash or stock...
Concord Inc. began operations in January 2018 and reported the following results for each of its 3 years of operations. 2018 $268,000 net loss 2019 $38,000 net loss 2020 $775,000 net income At December 31, 2020, Concord Inc. capital accounts were as follows. 8% cumulative preferred stock, par value $100; authorized, issued, and outstanding 4,500 shares $450,000 Common stock, par value $1.00; authorized 1,000,000 shares; issued and outstanding 741,000 shares $741,000 Concord Inc. has never paid a cash or stock...
Sweet Inc. began operations in January 2018 and reported the following results for each of its 3 years of operations. 2018 $242,000 net loss 2019 $40,000 net loss 2020 $875,000 net income At December 31, 2020, Sweet Inc. capital accounts were as follows. $480,000 7% cumulative preferred stock, par value $100; authorized, issued, and outstanding 4,800 shares Common stock, par value $1.00; authorized 1,000,000 shares; issued and outstanding 729,000 shares $729,000 Sweet Inc. has never paid a cash or stock...
Riverbed Inc. began operations in January 2018 and reported the following results for each of its 3 years of operations. 2018 $265,000 net loss 2019 $42,000 net loss 2020 $843,000 net income At December 31, 2020, Riverbed Inc. capital accounts were as follows. 8% cumulative preferred stock, par value $100; authorized, issued, and outstanding 4,500 shares $450,000 Common stock, par value $1.00; authorized 1,000,000 shares; issued and outstanding 778,000 shares $778,000 Riverbed Inc. has never paid a cash or stock...
Indigo Inc. began operations in January 2018 and reported the following results for each of its 3 years of operations. 2018 $240,000 net loss 2019 $37,000 net loss 2020 $765,000 net income At December 31, 2020, Indigo Inc. capital accounts were as follows. 8% cumulative preferred stock, par value $100; authorized, issued, and outstanding 4,800 shares $480,000 Common stock, par value $1.00; authorized 1,000,000 shares; issued and outstanding 756,000 shares $756,000 Indigo Inc. has never paid a cash or stock...
Flint Inc. began operations in January 2018 and reported the following results for each of its 3 years of operations. 2018 $249,000 net loss 2019 $42,000 net loss 2020 $743,000 net income At December 31, 2020, Flint Inc. capital accounts were as follows. $530,000 8% cumulative preferred stock, par value $100; authorized, issued and outstanding 5,300 shares Common stock, par value $1.00; authorized 1,000,000 shares: Issued and outstanding 780,000 shares $780,000 Flint Inc. has never paid a cash or stock...
Larkspur Inc. began operations in January 2018 and reported the following results for each of its 3 years of operations. 2018 $265,000 net loss 2019 $40,000 net loss 2020 $765,000 net income At December 31, 2020, Larkspur Inc. capital accounts were as follows. $500,000 8% cumulative preferred stock, par value $100; authorized, issued, and outstanding 5,000 shares Common stock, par value $1.00; authorized 1,000,000 shares; issued and outstanding 682,000 shares $682,000 Larkspur Inc. has never paid a cash or stock...
Pharoah Inc. began operations in January 2018 and reported the following results for each of its 3 years of operations. 2018 $260,000 net loss 2019 $37,000 net loss 2020 $819,000 net income At December 31, 2020, Pharoah Inc. capital accounts were as follows. $470,000 7% cumulative preferred stock, par value $100; authorized, issued, and outstanding 4,700 shares Common stock, par value $1.00; authorized 1,000,000 shares; issued and outstanding 818,000 shares $818,000 Pharoah Inc. has never paid a cash or stock...
Exercise 15-24
Tamarisk Inc. began operations in January 2018 and reported the
following results for each of its 3 years of operations.
2018
$261,000 net loss
2019
$41,000 net loss
2020
$830,000 net income
At December 31, 2020, Tamarisk Inc. capital accounts were as
follows.
9% cumulative preferred stock, par value $100; authorized,
issued,
and outstanding 4,800 shares
$480,000
Common stock, par value $1.00; authorized 1,000,000
shares;
issued and outstanding 688,000
shares
$688,000
Tamarisk Inc. has never paid a cash...