Answered

Welcome to Westonci.ca, your one-stop destination for finding answers to all your questions. Join our expert community now! Experience the ease of finding reliable answers to your questions from a vast community of knowledgeable experts. Experience the convenience of finding accurate answers to your questions from knowledgeable experts on our platform.

1. Hayes Enterprises began 2003 with a retained earnings balance of $820,000. During 2003, the firm earned $470,000 after taxes. From this amount, preferred stockholders were paid $47,000 in dividends. At year-end 2003, the firm's retained earnings totaled $1,040,000. The firm had 120,000 shares of common stock outstanding during 2003.

a. Prepare a statement of retained earnings for the year ended December 31, 2003, for Hayes Enterprises. (Note: Be sure to calculate and include the amount of cash dividends paid in 2003.)

b. Calculate the firm's 2003 earnings per share (EPS).

c. How large a per-share cash dividend did the firm pay on common stock during 2003?

Sagot :

anthougo

Answer:

Hayes Enterprises

a. A Statement of Retained Earnings for the year ended December 31, 2003

January 2003 Retained Earnings Balance  $820,000

After taxes earnings during 2003                  470,000

Retained earnings available =                    $1,290,000

Preferred dividends =                                       (47,000)

Retained earnings available for common $1,243,000

Common stock dividends =                          (203,000)

Retained Earnings Balance =                    $1,040,000

b. 2003 Earnings per share (EPS) = $1.69

c. The company paid $1.69 cash dividend to common stock during 2003.

Explanation:

a) Data and Calculations:

January 2003 Retained Earnings Balance  $820,000

After taxes earnings during 2003                  470,000

Retained earnings available =                    $1,290,000

Preferred dividends =                                       (47,000)

Retained earnings available for common $1,243,000

Common stock dividends =                          (203,000) ($1,243,000 -$1,040,000)

Retained Earnings Balance =                    $1,040,000

Outstanding common stock shares = 120,000

Thank you for visiting. Our goal is to provide the most accurate answers for all your informational needs. Come back soon. Thank you for your visit. We're committed to providing you with the best information available. Return anytime for more. Thank you for choosing Westonci.ca as your information source. We look forward to your next visit.