1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
AveGali [126]
2 years ago
5

Changes in stockholders' equity Listed are the equity sections of balance sheets for years 2014 and 2015 as reported by Mountain

Air Ski Resorts, Inc. The overall value of stockholders' equity has risen from $1,800,000 to $7,200,000. Use the statements to discover how and why this happened. The company paid total dividends of $210,000 during fiscal 2015.
Mountain Air Ski Resorts, Inc. Balance Sheet (partial)
Stockholder's Equity 2014 2015
Common stock ($1.00 par)
authorized 4,600,000 shares
outstanding 1,600,000 shares 2015 $1,600,000
outstanding 480,000 shares 2014 $480,000
Paid-in capital in excess of par 520,000 4,100,000
Retained earnings 800,000 1,500,000
Total stockholder's equity $1,800,000 $7,200,000

a. Mountain Air's net income for fiscal 2015 is $_____. Round to the nearest dollar.
b. The number of new shares issued is shares _____. Round to the nearest integer.
c. The price per share of the new stock sold during 2015 is $_____. Round to the nearest cent.
d. The original price of the shares was $_____. (Round to the nearest cent.)
Business
1 answer:
svet-max [94.6K]2 years ago
5 0

a. Mountain Air's net income for fiscal 2015 is $910,000.

b. The number of new shares issued is 1,120,000.

c. The price per share of the new stock sold during 2015 is $4.20.

d. The original price of the shares was $2.08.

a. The net income is

= $1,500,000 - $800,000 + $210,000

= $910,000

b. The number of  New Share issued is

= 1,600,000 - 480,000

= 1,120,000

c. The price of the new stock per share sold is  

Par Value 1,120,000

Add: Paid In excess Of par (4,100,000 - 520,000) 3,580,000

Net Proceeds from issuance of shares 4,700,000

Number of New Share Issued 1,120,000

Now  

The Average price per share of the new stock sold is

= 4,700,000 ÷ 1,120,000

= $4.20

d. The original price of the share is  

The original issuance price is

= (Paid-in-capital account + common stock account) ÷ original shares  

= (520,000 + 480,000) ÷ 480,000

= $2.08

Therefore we can conclude that

a. Mountain Air's net income for fiscal 2015 is $910,000.

b. The number of new shares issued is 1,120,000.

c. The price per share of the new stock sold during 2015 is $4.20.

d. The original price of the shares was $2.08.

Learn more: brainly.com/question/13931207

You might be interested in
One of the authors wanted to determine the effect of changing answers on​ multiple-choice tests. she studied the tests given by
Vilka [71]
Ye she’s yensjshiahahs
4 0
3 years ago
Read 2 more answers
A benefit of earning a salary instead of an hourly wage is
SCORPION-xisa [38]

B

Explanation:

An hourly wage is unfixed and can change depending on your ability but a salary doesn't change and ensures a continuous income

5 0
3 years ago
Read 2 more answers
When firms in a perfectly competitive market face the same costs, in the long run they must be operating a. under diseconomies o
ella [17]

Answer:

d. where price is equal to average fixed cost.

Explanation:

Firms involved in a perfectly competitive market face the same cost, <em>they will theoretically make zero profit on the long run.</em> This happen at the point where price is equal to average fixed cost.

7 0
3 years ago
The following information pertains to Pernell Company's pension plan. Beginning PBO: $500,000; current service cost $50,000; dis
monitta

Answer:

= $560,000

Explanation:

Given that:

  • -Beginning PBO: 500,000
  • -Current Service Cost: 50,000
  • -Discount Rate: 6%  => interest cost = 500,000*6% = 30,000
  • -Contributions by Pernell: 40,000
  • -Benefits paid to employees 25,000
  • -Loss on PBO: 5,000

As we know that service cost; gains and losses; payments to retired employees; prior service cost; interest cost; payments to employees are factors that change the balance of the PBO

So the ending balance of the PBO will be:

Beginning PBO + Current Service Cost + Interest cost Loss on PBO -Benefits paid to employees

$500,000 + $50,000+ $30,000+$5,000-$25,000

= $560,000

4 0
2 years ago
The flatter the demand curve through a given point, the a. closer the price elasticity of demand will be to the slope of the cur
jonny [76]
Cube c. Is ur answer I did this not long ago it’s very easy try and learn it.
6 0
3 years ago
Other questions:
  • Your financial institution can’t help you if there is a mistake on your bank account statement ?
    5·2 answers
  • Double D Ranch and Esau enter into a contract on August 1 for the sale of 200 cattle. Esau cancels the contract ten days later.
    5·1 answer
  • Damian owns a pick-up truck and a motorcycle. He sells the motorcycle to Eden for $10,000. Eden pays for the cycle with a check,
    9·1 answer
  • Four students are storing this fact: "europeans first settled at st. augustine, florida, in 1565." which student is probably goi
    15·1 answer
  • Pop-Quiz/12 points!!
    7·1 answer
  • It is January 2nd. Senior management of Digby meets to determine their investment plan for the year. The current long-term debt
    9·2 answers
  • Your company purchases $50,000 of inventory from a wholesaler who allows you 45 days to pay. In addition, the wholesaler offers
    13·1 answer
  • Prepare journal entries for each transaction and identify the financial statement impact of each entry.
    8·1 answer
  • Sub to to thunderoflight PLSSSSSSSSSSSSSSSSSSSSSS I NEED IT TO GROW MY CHANNEL I WILL GIVE BRAINLIST PLSSSSSSSSSSSSs
    13·1 answer
  • Suppose executives at an art museum know that 100 adults are willing to pay $12 for admission to the museum on a given weekday.
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!