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Virty [35]
3 years ago
11

Company's comparative balance sheet E(Click the icon to view the comparative balance sheet.) t January 31, 2019, and 2018, repor

ts the following The following are three situations related Bosley Company's issuance of stock and declaration and payment of dividends during the year ended January 31, 2019. Read the requirements Begin by reviewing the labels for the change in stockholders' equity and then enter the amounts for each situation. (Enter sign amount in each input area, Input a "0" when there i no amount to be entered. Enter amounts in millions. Use a minus numbers to be subtracted.) rparentheses when entering net losses o Situation #1 1 Total stockholders' equity, January 31, 2018 Add: Issuance of stock 5 Data Table 0 Net income Less: Dividends declared 2018 2019 Net loss Total stockholders' equity, January 31, 2019 Total assets 74 48 Total liabilities 23 17 Print Done iRequirements For each situation, use the accounting equation and what you know from the chapter about stockholders' equity, common stock, and retained earnings to calculate the amount of Bosley's net income or net loss during the year ended January 31, 2019.
1. Bosley issued $5 million of stock and declared no dividends.
2. Bosley issued no stock but declared dividends of $8 million.
3. Bosley issued $10 million of stock and declared dividends of $50 million
Business
1 answer:
frozen [14]3 years ago
4 0

Answer:

Bosley Company

Calculation of Net Income or Net Loss during the year ended January 31, 2019, under three independent situations:

Situation 1. Bosley issued $5 million of stock and declared no dividends.  

Net Loss = stockholders' equity, January 31, 2018 plus new issue of stock less stockholders' equity, January 31, 2019

= $51 + 5 - 31 = $25 million

Situation 2. Bosley issued no stock but declared dividends of $8 million.

Net loss = stockholders' equity, January 31, 2018 less (dividends + stockholders' equity, January 31, 2019)

= $51 - (8 + 31) = $12 million

Situation 3. Bosley issued $10 million of stock and declared dividends of $50 million :

Net income = (stockholders' equity, January 31, 2019 plus dividends) minus (stockholders' equity, January 31, 2018 plus Issuance of stock)

= ($31 + 50) - ($51 + 10) = $20 million

Explanation:

a) Data and Calculations:

                                         2018    2019

Total assets                         74       48  

Total liabilities                     23       17  

Total stockholders' equity  51       31

Stockholders' equity according to the accounting equation = Assets minus Liabilities for each year.

b) Situation 1. Bosley issued $5 million of stock and declared no dividends.  

                                                                       ($' million)

Total stockholders' equity, January 31, 2018   51

Add: Issuance of stock                                       5

Net income                                                           0

Less: Dividends declared                                   0

Net loss                                                            (25 )

Total stockholders' equity, January 31, 2019   31

Net Loss = stockholders' equity, January 31, 2018 plus new issue of stock less stockholders' equity, January 31, 2019

= $51 + 5 - 31 = $25 million

c) Situation 2. Bosley issued no stock but declared dividends of $8 million.  

                                                                       ($' million)

Total stockholders' equity, January 31, 2018   51

Add: Issuance of stock                                       0

Net income                                                          0

Less: Dividends declared                                 (8 )

Net loss                                                             (12 )

Total stockholders' equity, January 31, 2019  31

Net loss = stockholders' equity, January 31, 2018 less (dividends + stockholders' equity, January 31, 2019)

= $51 - (8 + 31) = $12 million

d) Situation 3. Bosley issued $10 million of stock and declared dividends of $50 million

                                                                    ($' million)

Total stockholders' equity, January 31, 2018  51

Add: Issuance of stock                                     10

Net income                                                       20

Less: Dividends declared                               (50 )

Net loss                                                              0

Total stockholders' equity, January 31, 2019 31

Net income = (stockholders' equity, January 31, 2019 plus dividends) minus (stockholders' equity, January 31, 2018 plus Issuance of stock)

= ($31 + 50) - ($51 + 10) = $20 million

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An analysis of stockholders' equity of Hahn Corporation as of January 1, 2010, is as follows:
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Answer:

Additional paid-in capital is $904,200

Explanation:

Number of shares, issued and outstanding = 93,000 shares

Acquired 2,460 shares of its stock for $75,000.

Sold 2,000 treasury shares at $35 per share.

Sold the remaining 460 treasury shares at $20 per share.

i) Acquired 2,460 shares of its stock for $75,000.

= Treasury Stock Dr $75,000

ii) Sold 2,000 treasury shares at $35 per share.

Treasury Stock (2,000 × $35) = Dr $70,000

iii) Sold the remaining treasury shares at $20 per share.

Treasury Stock (460 × $20) = Dr $9,200

Total Treasury Stock = $75,000 - $70,000 - $9,200

= ($4,200)

Paid in Cap-tresury stock= 10,000-5000=5000

Additional Paid in capital = Paid in Capital - treasury stock

= 900,000 + 4,200 = $904,200

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3 years ago
Tyler has been operating his business as a sole proprietorship but decides that it is too much work for him to do alone. He does
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Answer:

business partner

Explanation:

Business partner -

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3 years ago
For each growth rate below, use the rule of 70 to calculate how long it will take incomes to double. Instructions: Round your an
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Answer:

Explanation:

Rule 70 is used to estimate how long it tales a cashflow amount to double.

The formula is as follows ;

Number of years = 70 / growth rate

<u>At 1.4% growth rate;</u>

Number of years = 70 / 1.4 = 50

<u>At 3.2% growth rate;</u>

Number of years = 70 / 3.2 = 21.88

<u>At 4.9% growth rate;</u>

Number of years = 70 / 4.9 = 14.29

<u>At 6.4% growth rate;</u>

Number of years = 70 / 6.4 = 10.94

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3 years ago
What are complex information systems that support end-to-end business processes? Functional systems Accounting systems Enterpris
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Answer:

Enterprise systems

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3 years ago
The most recent financial statements for Bello Co. are shown here: Income Statement Balance Sheet Sales $ 18,900 Current assets
allsm [11]

Answer:

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Explanation:

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ROA=.1262*100

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Second step is to calculate the plowback ratio b

The plowback ratio, b= 1 – .30

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Now let calculate the Internal growth rate using this formula

Internal growth rate=(ROA × b)/[1 – (ROA × b)]

Let plug in the formula

Internal growth rate=[.1262(.70)]/[1 – .1262(.70)]

Internal growth rate=.0969*100

Internal growth rate= 9.69%

Therefore the internal growth rate will be 9.69%

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