Which of the following is not one of the four basic financial statements? a. inc

Question

Which of the following is not one of the four basic financial statements?

a. income statement

b. balance sheet

c. statement of changes in financial position

d. statement of cash flows

2- A company had the following stockholders' equity information available at year-end.

Issued 11,000 shares of $2 par common stock for $12 per share.
Issued 5,000 shares of $50 par, 6% preferred stock for $70 per share.
Purchased 1,000 shares of previously issued common stock for $15 per share.
Reported net income of $200,000.
Declared and paid the preferred stock dividend.

3-

The charter of a corporation provides for the issuance of 100,000 shares of common stock. Assume that 40,000 shares were originally issued and 10,000 were subsequently reacquired. What is the number of shares outstanding?

a. 40,000

b. 30,000

c. 50,000

d. 10,000

Calculate the earnings per share for the current year. Round your answer to two decimal places.
$

Explanation / Answer

Solution 1:

Statement of changes in financial position is not one of the four basic financial statements.

Hence option c is correct.

Solution 2:

Outstanding common shares = 11000 - 1000 = 10000 shares

Income available for common shareholders = Net Income - Preference dividend

= $200,000 - (5000 * $50 * 6%) = $185,000

Earning per share = $185,000 / 10000 = $18.50 per share

Solution 3:

Nos of shares outstanding = Shares issued - Shares reacquired = 40000 - 10000 = 30000 shares

Hence option b is correct.

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