For the year that just ended, a company reports net income of $1,500,000. There are 500,000 shares authorized, 300,000 shares issued, and 250,000...
View the step-by-step solution to:

Question

For the year that just ended, a company reports net income of $1,500,000. There are 500,000 shares authorized,

300,000 shares issued, and 250,000 shares of common stock outstanding. What is the earnings per share?

Select one:

a. $3.00

b. $6.00

c. $2.50

d. $5.00


Glow Co. reacquired 60,000 shares of its common stock at $25 per share. The balance of the treasury stock account is reported on the balance sheet as a(n):

Select one:

a. reduction of stockholders' equity.

b. increase in current liabilities.

c. reduction of fixed assets.

d. increase in long-term liabilities.


The charter of a corporation provides for the issuance of 100,000 shares of common stock. Assume that 60,000 shares were originally issued (and sold) and 5,000 were subsequently reacquired. What is the number of shares outstanding?

Select one:

a. 60,000

b. 55,000

c. 100,000

d. 5,000


The par value per share of common stock represents:

Select one:

a. the amount of dividends per share to be received each year.

b. the minimum amount the stockholder will receive when the corporation is liquidated.

c. the minimum selling price of the stock established by the articles of incorporation.

d. an arbitrary monetary amount assigned to each share of stock in the articles of incorporation.

Top Answer

For the year that just ended, a company reports net income of $1,500,000. There are 500,000 shares authorized, 300,000 shares... View the full answer

Sign up to view the full answer

Why Join Course Hero?

Course Hero has all the homework and study help you need to succeed! We’ve got course-specific notes, study guides, and practice tests along with expert tutors.

  • -

    Study Documents

    Find the best study resources around, tagged to your specific courses. Share your own to gain free Course Hero access.

    Browse Documents
  • -

    Question & Answers

    Get one-on-one homework help from our expert tutors—available online 24/7. Ask your own questions or browse existing Q&A threads. Satisfaction guaranteed!

    Ask a Question