ZuoTi.Pro
Question

Brown Fashions Inc.'s December 31, 2018 balance sheet showed total common equity of $4,050,000 and 165,000...

Brown Fashions Inc.'s December 31, 2018 balance sheet showed total common equity of $4,050,000 and 165,000 shares of stock outstanding. During 2019, the firm had $450,000 of net income, and it paid out $100,000 as dividends. What was the book value per share at 12/31/19, assuming no common stock was either issued or retired during 2019? (Round your final answer to two decimal places.) a. $20.00 b. $32.80 c. $26.67 d. $22.93 e. $23.47

business   finance   
0 1
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1

Answer is $26.67

Beginning Book Value = $4,050,000
Net Income = $450,000
Dividends = $100,000

Ending Book Value = Beginning Book Value + Net Income - Dividends
Ending Book Value = $4,050,000 + $450,000 - $100,000
Ending Book Value = $4,400,000

Book Value per share = Ending Book Value / Number of Shares
Book Value per share = $4,400,000 / 165,000
Book Value per share = $26.67

0 0
Add a comment
Know the answer?
Add Answer to:
Brown Fashions Inc.'s December 31, 2018 balance sheet showed total common equity of $4,050,000 and 165,000...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

  • Brown Fashions Inc.'s December 31, 2014, balance sheet showed total common equity of $4,050,000 and 200,000 shares of s...

    Brown Fashions Inc.'s December 31, 2014, balance sheet showed total common equity of $4,050,000 and 200,000 shares of stock outstanding. During 2014, the firm had $450,000 of net income, and it paid out $100,000 as dividends. What was the book value per share at 12/31/14, assuming no common stock was either issued or retired during 2014? a. $22.00 b. $20.90 c. $25.47 d. $23.10 e. $24.26

  • The equity section of the December 31, 2019, balance sheet for Delicious Alternative Desserts Inc. showed...

    The equity section of the December 31, 2019, balance sheet for Delicious Alternative Desserts Inc. showed the following: Delicious Alternative Desserts Inc. Equity Section of the Balance Sheet December 31, 2019Contributed capital: Preferred shares, $0.40 cumulative; 80,000 shares authorized; 50,000 shares issued and outstanding$200,000 Common shares; 250,000 shares authorized; 110,000 shares issued and outstanding 176,000 Total contributed capital$376,000 Retained earnings 148,000 Total equity$524,000 During the year 2020, the company had the following transactions affecting equity accounts: Jan.3 Sold 10,000 common...

  • The December 31, 2018, balance sheet of Whelan, Inc., showed $138,000 in the common stock account...

    The December 31, 2018, balance sheet of Whelan, Inc., showed $138,000 in the common stock account and $2,630,000 in the additional paid-in surplus account. The December 31, 2019, balance sheet showed $148,000 and $2,930,000 in the same two accounts, respectively. The company paid out $143,000 in cash dividends during 2019. What was the cash flow to stockholders for the year? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and enter your answer in...

  • The December 31, 2018, balance sheet of Whelan, Inc., showed $148,000 in the common stock account...

    The December 31, 2018, balance sheet of Whelan, Inc., showed $148,000 in the common stock account and $2,730,000 in the additional paid-in surplus account. The December 31, 2019, balance sheet showed $158,000 and $3,030,000 in the same two accounts, respectively. The company paid out $153,000 in cash dividends during 2019. What was the cash flow to stockholders for the year? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and enter your answer in...

  • The December 31, 2018, balance sheet of Whelan, Inc., showed $150,000 in the common stock account...

    The December 31, 2018, balance sheet of Whelan, Inc., showed $150,000 in the common stock account and $2,750,000 in the additional paid-in surplus account. The December 31, 2019, balance sheet showed $160,000 and $3,050,000 in the same two accounts, respectively. The company paid out $155,000 in cash dividends during 2019. What was the cash flow to stockholders for the year? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and enter your answer in...

  • The stockholders' equity section of Thomas Corporation's balance sheet at December 31, 2018, appears below:            ...

    The stockholders' equity section of Thomas Corporation's balance sheet at December 31, 2018, appears below:                         Preferred Stock, 6%, $15 stated value, 50,000 shares authorized;                         10,000 issued and outstanding                                                                  150,000             Paid-in capital in excess of stated value-preferred stock                                      30,000             Common stock, $10 par value, 400,000 shares authorized;                      250,000 issued and outstanding                                                                2,500,000             Paid-in capital in excess of par value-common stock                                      1,200,000             Retained earnings                                                                                                  600,000             During 2019, the following stock transactions...

  • The stockholders' equity section of Apples balance sheet as of December 31, 2018 is as follows:...

    The stockholders' equity section of Apples balance sheet as of December 31, 2018 is as follows: Stockholders' Equity - Preferred Stock, 4% $100 par value, 100,000 shares authorized and 5000 shares issued and outstanding = $500,000 - Common stock, $10 par value; authorized, 2,000,000 shares auth; issued and outstanding 60,000 shares = $600,000 - Paid-in capital in excess of par = $850,000 - Retained earnings = $4,000,000 to The following events occurred during 2019: Jan. 5: 20,000 shares of authorized...

  • The stockholders' equity section of Thomas Corporation's balance sheet at December 31, 2018, appears below: Preferred...

    The stockholders' equity section of Thomas Corporation's balance sheet at December 31, 2018, appears below: Preferred Stock, 6%, $15 stated value, 50,000 shares authorized; 10,000 issued and outstanding Paid-in capital in excess of stated value-preferred stock Common stock, $10 par value, 400,000 shares authorized; 250,000 issued and outstanding 150,000 30.000 2,500,000 Paid-in capital in excess of par value-common stock Retained earnings 1,200,000 600,000 During 2019, the following stock transactions occurred: Jan. 18 Issued 5,000 shares of common stock at $30...

  • Mady Entertainment Inc. showed the following equity account balances on the December 31, 2019, balance sheet:...

    Mady Entertainment Inc. showed the following equity account balances on the December 31, 2019, balance sheet: Common shares, unlimited authorized shares, 550,000 shares issued and outstanding $ 3,850,000 Retained earnings 2,580,000 During 2020, the following selected transactions occurred: Apr. 1 Repurchased and retired 150,000 common shares at $7.60 per share; this is the first retirement recorded by Mady. June 1 Declared a 2:1 share split to shareholders of record on June 12, distributable June 30. Dec. 1 Declared a 10%...

  • The December 31, 2018, balance sheet of Whelan, Inc., showed long-term debt of $1,430,000, $146,000 in...

    The December 31, 2018, balance sheet of Whelan, Inc., showed long-term debt of $1,430,000, $146,000 in the common stock account, and $2,710,000 in the additional paid-in surplus account. The December 31, 2019, balance sheet showed long-term debt of $1,640,000, $156,000 in the common stock account and $3,010,000 in the additional paid-in surplus account. The 2019 income statement showed an interest expense of $97,000 and the company paid out $151,000 in cash dividends during 2019. The firm’s net capital spending for...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT