Ch15FFSOnline - Other information taken from ±inning’s...

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Focus on Financial Statements Online FFS 15-2 FFS 15-3 Chapter 15 Refer to the Fnancial statements and notes to the Fnancial statements for Leon’s on pages I-3 to I-9 in Appendix I at the end of the textbook. Required 1. How many common shares were issued as of December 31, 2002? a. What were the total dividends declared during 2002? b. Were all of the dividends declared in 2002 paid in 2002? Explain. c. What are dividends? 2. Leon’s reported net income of $38,520 (thousand) for the year ended December 31, 2002. What effect does net income have on equity? Explain. Headquartered in Vancouver, British Columbia, ±inning International Inc. sells and rents Caterpillar and other equipment in Canada and abroad. On its statement of retained earn- ings for the year ended December 31, 2002, ±inning reported dividends on common shares of $23,100 (thousand). Note 11 to the December 31, 2002, Fnancial statements reported 77,579,954 common shares issued and outstanding for a total of $233,450 (thousand).
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Unformatted text preview: Other information taken from ±inning’s December 31, 2002, balance sheet follows: Required Answer the following questions. 1. The dividends on common shares declared and paid during 2002 had what effect on ±inning’s balance sheet? 2. Calculate the average issue price per common share based on the information available at December 31, 2002? 3. Assume additional shares were issued for cash, what would the effect have been on the balance sheet? 4. Was ±inning’s balance sheet strengthened 1 from 2001 to 2002? Brie²y explain your answer. 1 When a balance sheet is said to have been strengthened , it means, in general, that total liabilities (or risk associated with debt fnancing) have decreased and shareholders’ equity has increased. (C$ thousands) December 31, 2002 December 31, 2001 Total liabilities. ...................................... $1,714,222 $1,837,918 Total shareholders’ equity . ................... 930,360 775,863...
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This note was uploaded on 08/22/2009 for the course ACCT 1101 taught by Professor Davescott during the Fall '05 term at Niagara College.

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