Chap11wildtextbook

S h a re s p e r s h a re t o ta l s a le 5 0 0 8.0 0

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Unformatted text preview: S h a re s P e r S h a re T o ta l S a le 5 0 0 8 .0 0 $ 4 ,0 0 0 $ C o st 5 0 0 4 .0 0 2 ,0 0 0 P a id -In C a p ita l 2 ,0 0 0 $ Selling Treasury Stock Above Cost Cr Dr July 19 Cash 4,000 Treasury Stock, common 2,000 Paid-In Capital, Treasury Stock 2,000 Sold 500 treasury shares for $8 per share 11-22 On August 27, Whitt sold an additional 400 shares of its treasury stock for $1.50 per share. Selling Treasury Stock Below Cost S h a re s P e r S h a re T o ta l C o st 4 00 4.0 0 $ 1 ,60 0 $ S a le 4 00 1.5 0 60 0 D iffe re n c e 1 ,00 0 $ Cr Dr Aug. 27 Cash 600 1,000 Treasury stock, common 1,600 Sold 500 treasury shares for $1.50 per share Paid-in Captial, treasury stock 11-23 Total cumulative amount of reported net income less any net losses and dividends declared since the company started operating. Retained earnings, 1/1/11 875,000 $ Plus: net income 155,600 Less: dividends declared (80,000) Retained earnings, 12/31/11 950,600 $ Reed, Inc. Statement of Retained Earnings For Year Ended December 31, 2011 Statement of Retained Earnings 11-24 (In millions) Retained Shares Amount Earnings Total Balance at January 1, 2011 821 2,500 $ 9,500 $ 12,000 $ Stock sales 17 500 500 Stock repurchases and retirement (17) (260) (925) (1,185) Cash dividends declared (150) (150) Other, net 70 70 Net income 5,100 5,100 Balance at December 31, 2011 821 2,740 $ 13,595 $ 16,335 $ Common stock and capital in excess of par Matrix, Inc. Statement of Stockholders' Equity For the Year Ended December 31, 2011 Statement of Stockholders’ Equity This is a more inclusive statement than the statement of retained earnings. 11-25 Earnings per share is one of the most widely cited items of accounting information. Earnings Per Share Basic earnings per share = Net income - Preferred dividends Weighted-average common shares outstanding 11-26 This ratio reveals information about the stock market’s expectations for a company’s future growth in earnings, dividends, and opportunities. If earnings go up, will the market price of my stock follow? Price-Earnings Price- earnings ratio = Market value per share Earnings per share 11-27 Tells us the annual amount of cash dividends distributed to common stockholders relative to the stock’s market price. Dividend Yield Dividend yield = Annual cash dividends per share Market value per share 11-28...
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S h a re s P e r S h a re T o ta l S a le 5 0 0 8.0 0 $ 4,0...

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