Ch9 - 9-18 Cash… 65,000 Common Stock… 25,000 Paid-in...

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Unformatted text preview: 9-18 Cash… 65,000 Common Stock… 25,000 Paid-in Capital in Excess of Par – Common… 40,000 Cash… 50,000 Preferred Stock… 50,000 Inventory… 11,000 Equipment… 8,500 Common Stock… 8,250 Paid-in Capital in Excess of Par – Common… 11,250 Balance Sheet Stockholders Equity: Preferred Stock… 50,000 Common Stock… 33,250 Paid-in capital in excess of par… 51,250 Total Paid-in Capital… 134,500 Retained Earning… (42,000) Total stockholder’s equity… 92,500 9-22 Cash… 10,000 Common Stock… 2,000 Paid-in Capital in Excess of Par – Common… 8,000 Treasury Stock – Common… 6,300 Cash… 6,300 Cash… 9,600 Treasury Stock - Common… 5,600 Paid-in Capital from Treasury Stock Transactions… 4,000 10,000 – 6,300 + 9,600 = 13,300 (overall stockholders’ equity 9-23 Cash… 75,000,000 Common Stock… 9,000,000 Paid-in Capital in Excess of Par – Common… 66,000,000 Treasury Stock… 14,000,000 Cash… 14,000,000 Retained Earnings… 30,000,000 Dividends Payable… 30,000,000 Dividends Payable… 30,000,000 Cash… 30,000,000 9-28 a) Decrease $80 million b) No effect c) No effect d) No effect e) Decrease $8,500 f) Increase $3,000 g) No effect 9-30 1. (93,200 – 10,000) / 8,000 = $10.40 2. [93,200 – (10,000 + 1,080)] / 8,000 = $10.27 3. Unknown; need more than one ratio 9-31 1. (1,486 + 219) / [(15,695 + 13,757) / 2] = 11.6% 2. 43 + 11,519 – 2,914 = 8,648 388 + 16,510 – 9,294 = 7,604 1,486 / [(8,648 + 7,604) / 2] = 18.3% It’s good because ROE is higher than ROA for a successful company ...
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Ch9 - 9-18 Cash… 65,000 Common Stock… 25,000 Paid-in...

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