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4 years ago

The stockholders' equity section on the December 31, 2012, balance sheet of Chemfast Corporation reported the following amounts:

Business

1 answer:

Lina20 [59]4 years ago

6 0

Answer:

1. The number of Shares of Preferred Stock issued was

88000/20 = 4400

2. Number of shares outstanding was

4400 - 1000= 3400

3. Average issue price of the preferred stock was

(88000+10340)/4400= 22.35

4. Average issue price of the common stock was

(478400/5200)= 92

5. The treasury stock transaction decreased stock equity by 9100

6. The treasury stock cost (9100/1000)= 9.1

7. Total stockholder Equity is 589,640

Stockholders Equity

Capital stock

Preferred stock 88000

paid in capital in excess of par 10340

Common stock 478400

total paid in capital 576740

Retained Earnings 22000

total paid in capital & Retained earnings 598740

less Treasury stock -9100

total Stockholders Equity 589640

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Answer:

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4 years ago

According to the U.S. Department of Labor Statistics, in 2009 high school graduates made approximately _____ more a year than th

iragen [17]

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3 years ago

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3 years ago

The current asset section of Guardian Consultant's balance sheet consists of cash, accounts recelvable, and prepald expenses. Th

ivann1987 [24]

Answer:

a) Current Liabilities $2,780,000

b) Long term liabilities $2,680,000

c) Accounts receivable $3,620,000

d) Therefore Acid Test 1.8

Explanation:

Step 1: Calculate the Current Liabilities

The question requires a work-back based on the information given as follows

Stockholders Equity (A) $3,900,000

Debt Equity Ration 1.4

Total debt therefore ($3,600,000 x 1.4) (B) $5,460,000

Total debt and equity therefore is (A + B ) $9,360,000

($3,900,000 + $5,460,000)

Total Equity and Debt = Total Assets

Total Assets therefore $9,360,000

Therefore Current Assets $5,560,000

(Total debt - Non Current Asset)

($9,360,000 - $3,800,000)

Less: Cash and prepaid expenses ($1,940,000)

($1,440,000 + $500,000)

Accounts receivable $3,620,000

Current Ratio therefore is 2.0 (not 20)

Meaning: Current Liabilities $2,780,000

(Current Assets/ Current ratio)

($5,560,000/2)

Step 2: Calculate Long term Liabilities

Total debt (from step 1) $5,460,000

less; Current Liabilities $2,780,000

Long term liabilities $2,680,000

Step 3: Accounts Receivable

Total Assets $9,360,000

Current Assets $5,560,000

(Total debt - Non Current Asset)

($9,360,000 - $3,800,000)

Less: Cash and prepaid expenses ($1,940,000)

($1,440,000 + $500,000)

Accounts receivable $3,620,000

Step 4: The Acid test ratio

Cash $1,440,000

Accounts Receivable $3,620,000

Quick Asset (Cash + Accounts receivable) $5,060,000

Current Liabilities $2,780,000

Therefore Acid Test 1.8

(Quick Asset / Current liabilities)

(5,060,000/2,780,000) 1.8

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3 years ago