Sabik corporation has had 7500 shares of 300

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9. Sabik Corporation has had 7,500 shares of $3.00 cumulative preferred shares outstanding as well as 28,000 common shares issued at $10 outstanding since it was incorporated. During the first, second, and third years of operations, $15,000, $18,000, and $50,000 in dividends, respectively, were paid. The dividends paid to the common shareholders of Sabik Corporation in year three amounted to: a)$0 b) $15,500 c) $27,500 d) Cannot be determined from the given information. 10. The following information is available for Louisville Limestone Corporation for the current year: Net income $160,000 Preferred dividends 30,000 Interest expense 18,000 Beginning of year: Total assets 900,000 Total liabilities 300,000 Total common shareholders’ equity 375,000 End of year: 2
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Total assets 950,000 Total liabilities 350,000 Total common shareholders’ equity 400,000 The return on assets for Louisville Limestone Corporation is: 3
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Part B (15 marks) On January 1, 2004, Wool Corporate had these shareholder’s equity accounts: Common shares (no pare value, unlimited number of shares Authorized, 80,000 shares issued) $1,000,000 Retained earnings 540,000 During the year, the following transactions occurred: Jan 15 Declared a $0.60 per share cash dividend to shareholders of record on January 31, payable February 15. Feb 15 Paid the dividend declared in January. April 15 Declared a 10% stock dividend to shareholders of record on April 30, distributable May 15. On April 15, the market price of the shares was $20 per share. May 15 Issued the shares for the stock dividends. Sept 30 Reacquired 300 common shares, paying $20 per share. Dec 1 Declared a $0.75 per share cash dividend to shareholders of record on December15, payable January 10, 2005. Dec 31 Determined that net earnings for the year were $37,000. On December 31, the Market price of the shares was $25 per share.
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