Cabo Company has $1,000,000 in assets and $1,000,000 in stockholders’ equity, with 40,000 shares outstanding the...
Cabo Company has $1,000,000 in assets and $1,000,000 in stockholders’ equity, with 40,000 shares outstanding the entire year. It has a return on assets of 10%. During 2016, it had net income of $100,000. On January 1, 2017, it issued $400,000 in debt at 4% and immediately repurchased 20,000 shares for $400,000. Management expected that, had it not issued the debt, it would have had net income of $100,000 in 2017.
Determine the company’s net income and earnings per share for 2016 and 2017. (Ignore taxes in your computations.) (Round earnings per share to 2 decimal places, e.g. $2.66.)
|
2016 |
2017 |
|||
|---|---|---|---|---|
|
Net income |
 |
|
||
|
Earnings per share |
rounded to 2 decimal places
|
$enter earnings per share in dollars rounded to 2 de |
Homework Answers
|
2016 |
2017 |
|||
|---|---|---|---|---|
|
Net income |
 100000 |
100000-400000*4% = $84000 |
||
|
Earnings per share |
100000/40000 = $2.5 per share
|
84000/20000 = $4.2 per share |
Add Answer to:
Cabo Company has $1,000,000 in assets and $1,000,000 in
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Ivanhoe Company has $1,200,000 in assets and $1,200,000 in stockholders equity, with 42,200 shares outstanding the...
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Exercise 11-15 Ivanhoe Company has $1,200,000 in assets and...
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Management expected that, had it not issued the debt, it would have
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Exercise 11-20 a-c Crane Company has $1,140,000 in assets and $1,140,000 in stockholders’ equity, with 36,600...
Exercise 11-20 a-c
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year. It has a return on assets of 15%. During 2021, it had net
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at 6% and immediately repurchased 18,300 shares for $397,000.
Management expected that, had it not issued the debt, it would have
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Determine the company’s net income and...
Crane Company has $1,020,000 in assets and $1,020,000 in stockholders’ equity, with 39,000 shares outstanding the...
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Shareholders Equity - Updated Shares Common Prefered Retained Accumulated Other Comp. Inc Total Shareholders' Equity...
Shareholders Equity - Updated
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$300,000
Common Stock ($4 stated value, 300,000 shares authorized)
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Paid-in Capital in Excess of Par Value—Preferred Stock
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Paid-in Capital in Excess of Stated Value—Common Stock
480,000
Retained Earnings
688,000
Treasury Stock (5,000 common shares)
40,000
During 2017, the corporation had the following transactions and
events pertaining to its stockholders’ equity.
Feb.
1
Issued 5,000 shares...
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stockholders’ equity, with 36,600 shares outstanding the entire
year. It has a return on assets of 15%. During 2021, it had net
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at 6% and immediately repurchased 18,300 shares for $397,000.
Management expected that, had it not issued the debt, it would have
had net income of $171,000 in 2022.
Determine the company's net income and earnings per share...
Ivanhoe Company has $1,200,000 in assets and $1,200,000 in
stockholders equity, with 42,200 shares outstanding the entire
year. It has a return on assets of 10%. During 2016, I had net
income of $120,000. On January 1, 2017, it issued $386,000 in debt
at 6% and immediately re-purchased 21,100 shares for $386,000.
Management expected that, had it not issued the debt, it would have
had net income of $120,000 in 2017.
Exercise 11-15 Ivanhoe Company has $1,200,000 in assets and...
Ivanhoe Company has $1,200,000 in assets and $1,200,000 in
stockholders’ equity, with 42,200 shares outstanding the entire
year. It has a return on assets of 10%. During 2021, it had net
income of $120,000. On January 1, 2022, it issued $386,000 in debt
at 6% and immediately repurchased 21,100 shares for $386,000.
Management expected that, had it not issued the debt, it would have
had net income of $120,000 in 2022. Assume the company pays
dividends on common stock equal...
Exercise 11-20 a-c
Crane Company has $1,140,000 in assets and $1,140,000 in
stockholders’ equity, with 36,600 shares outstanding the entire
year. It has a return on assets of 15%. During 2021, it had net
income of $171,000. On January 1, 2022, it issued $397,000 in debt
at 6% and immediately repurchased 18,300 shares for $397,000.
Management expected that, had it not issued the debt, it would have
had net income of $171,000 in 2022.
Determine the company’s net income and...
Shareholders Equity - Updated
Shares Common Prefered Retained Accumulated Other Comp. Inc Total Shareholders' Equity Description Common Prefered Stock Stock Earnings Balance as of December 31, 2015 30,260 364,741 86,387 3,378 454,506 Balance as of December 31, 2016 30,260 364,741 86,387 3,378 454,506 Balance as of December 31, 2017 30,260 $364,741 $ $ 86,387 $ 3,378 $ 454,506 Statement of Comprehensive Income 2017 2016 Net Income Change in Fair Value of Investment Securities, AFS, net of tax Other Comprehenvise...
The stockholders’ equity accounts of Cyrus Corporation on
January 1, 2017, were as follows.
Preferred Stock (7%, $100 par noncumulative, 5,000 shares
authorized)
$300,000
Common Stock ($4 stated value, 300,000 shares authorized)
1,000,000
Paid-in Capital in Excess of Par Value—Preferred Stock
15,000
Paid-in Capital in Excess of Stated Value—Common Stock
480,000
Retained Earnings
688,000
Treasury Stock (5,000 common shares)
40,000
During 2017, the corporation had the following transactions and
events pertaining to its stockholders’ equity.
Feb.
1
Issued 5,000 shares...
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