3.Operating Profit = $300,000
Less: Interest = $35,000
EBT = $265,000
Less: Taxes = $75,000
Net Income before Preferred Dividend = $190,000
Less: Preferred Dividends = $28,900
Net Income = $161,100
Less: Common Dividends = $40,000
Addition to Retained Earnings = $121,100
a.Earnings per Share = Net Income/Number of Shares
= $161,100/18,000
= $8.95
Common Dividend per Share = Common Dividends/Number of Shares
= 40,000/18,000
= $2.22 per share
b. Increase in Retained Earnings = $121,100
Billy Bob's has an operating profit of $300,000. Interest expense for the year was $35,000; preferred...
2. Elite Trailer Parks has an operating profit or $200,000. Interest expense for the year was $10,000; preferred dividends paid were $18,750; and common dividends paid were $30,000. The tax was $61,250. The firm has 20,000 shares of common stock outstanding a. Calculate the earnings per share and the common dividends per share for Elite Trailer Parks. b. What was the increase in retained earnings for the year?
Elite Trailer Parks has an operating profit of $293,000. Interest expense for the year was $38,800; preferred dividends paid were $31,500; and common dividends paid were $36,900. The tax was $65,500. The firm has 20,200 shares of common stock outstanding. a. Calculate the earnings per share and the common dividends per share for Elite Trailer Parks. (Round your answers to 2 decimal places.) b. What was the increase in retained earnings for the year?
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