A company had the following stockholders\' equity on January 1: (ABOVE) On Janua

Question

A company had the following stockholders' equity on January 1: (ABOVE)

  
On January 10, the company declared a 40% stock dividend to holders of record on January 25, to be distributed January 31. The market value of the stock on January 10 prior to the dividend was $20 per share.

(a) What is the balance in the common stock account on February 1?________________

(b) What is the balance in the paid in capital account on February 1?________________

(c) What is the balance in the retained earning account on February 1?________________

(d) What is the balance in the common stock account on February 1?________________

(e) What is total stockholders’ equity on February 1?________________

6. A company reported operating cash flows in 2009 of $23,400 and $26,220 in 2010. Its average total assets in 2009 was $262,000 and $285,000 in 2010. Calculate the cash flow on total assets ratio for:

(a) 2009 _______

(b) 2010 ________

Explanation / Answer

a Balance in the Common Stock on February 1 560,000.00 (400,000 * 40%) + 400,000 b Balance in the paid in Capital on February 1 3,900,000.00 560,000 + 300,000 +3,040,000 c Balance in the Retained Earnings on February 1 364,000.00 d Balance in the Common Stock on February 1 560,000.00 (400,000 * 40%) + 400,000 e Total Stock Holders' Equity on Feb1 4,264,000.00 3,900,000 + 364,000 6 Cash Flow on Total Assets for 2009 - 23,400 / 262,000 0.08 Cash Flow on Total Assets for 2010 - 26,220 / 285,000 0.09

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