current fair market value of the securities is $5,235,000, resulting in a variance reported in OtherComprehensive Income as an unrealized loss of $265,000. If the marketable securities are sold,the loss would then become realized and recognized in net income. Lastly the company repairedits packing machine for $27,000, projected to function for four years and the cost was listedunder an increase to baking equipment assets.
ACC 309 Milestone One3Stockholder EquityWhen evaluating the company’s stockholder’s equity, all so known as shareholder’sequity, it is important to note that the shareholder’s equity is the difference between the companyassets and liabilities. (Saint-Leger, n.d.) The stockholder’s equity is the remainder of assets, afterall liabilities have been satisfied. Payton Approved has opened up two new storefront locationsand launched a new marketing campaign, that was estimated to bring in 20,000 new customersover the next six months. The company will require additional capital but will generateadditional after-tax profit. They have provided us with three scenarios. Option one would imply aconvertible preferred stock, this would decrease due to the $100,000 dividend that would beplayed out. Option two would obligate the company to a higher tax-deductible interest but couldbe levered anticipated and existing income. Lastly, option three is a mixture on both options but,with minimized potential loss. Looking at Peyton Approved’s shareholder’s equity, which islocated on the balance sheet, you will see that for 2017 total assets were $19,537,963 while totalliabilities were $7,869,422.54. This leads us to conclude that total equity is $11,668,540.46.Retained Earnings Per ShareRetained earnings per share is calculated by “taking the net earnings number, adding any
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- Fall '17
- Sean Cote
- Balance Sheet, Peyton