Intermediate Accounting
3rd Edition
ISBN: 9780136912644
Author: Elizabeth A. Gordon; Jana S. Raedy; Alexander J. Sannella
Publisher: Pearson Education (US)
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Textbook Question
Chapter 5, Problem 5.17BE
Computation of Retained Earnings. Taxi Cabs, Inc reported the following account balances on its balance sheet as of the beginning of the current year.
Retained Comings | $1,250,000 |
Common Stock, $1 Par (200,000 Shares) | $ 200,000 |
Additional Paid-in-Capital in Excess of Par-Common | $ 775,000 |
Accumulated other Comprehensive Income | $ 345,000 |
It reported the following information for the current year | |
Net Income | $140,000 |
Unrecognized Pension Costs | $ (67,000) |
Dividends Declared | $ 10,000 |
Issued 50.000 Shares of Common Stock for $125,000 | $125,000 |
Unrealized Losses on Available-for-Sale Investments | $(22,000) |
Foreign Currency Translation Adjustments—Gain | $ 13,000 |
What is the balance in the retained earnings account at the end of the year?
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70,000
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14,000
0.25
52,050
a. Determine the return on total assets, the return on stockholders' equity, and the return on common stockholders' equity for the years
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Return on common stockholders' equity
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X %
%
20Y5
%
$167,000
70,000
28,000
14,000
42,000
the return on…
Required information
[The following information applies to the questions displayed below]
Markus Company's common stock sold for $5.25 per share at the end of this year. The company paid a common stock
dividend of $0.63 per share this year. It also provided the following data excerpts from this year's financial statements.
Cash
Accounts receivable
Inventory
Current assets
Total assets
Current liabilities
Total liabilities
Common stock, $1 par value
Total stockholders' equity
Total liabilities and stockholders' equity
Sales (all on account)
Cost of goods sold
Gross margin
Net operating income
Interest expense
Net Income
This Year
$ 1,095,000
$ 635,100
$ 459,900
$313,875
$ 15,500
$ 208,862
Ending Balance
$ 49,000
$ 92,000
$76,300
$ 217,300
$ 801,000
$ 85,500
$206,000
$ 165,000
$ 595,000
$ 801,000
Beginning
Balance:
$ 44,200
$ 68,700
$ 92,000
$ 204,900
$ 875,400
$ 90,000
$ 185,400
$ 165,000
$ 690,000
$ 875,400
Chapter 5 Solutions
Intermediate Accounting
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