Analyze equity section of balance sheet. ( \(L O 1,2,3,4)\)

This information is from the equity section of the comparative balance sheets of Tick Tock Inc.

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a. What was the average issue price per share of the 450,000 shares classified as "issued" at September 30, 2008? (Round the answer to the nearest cent.)

b. What was the average issue price of the 25,000 shares of common stock issued during the fiscal year ending September 30, 2008?

c. How many shares were outstanding at September 30, 2008? How many shares were outstanding at September 30, 2007?

d. How many shares did the company buy back during the year? What was the average cost of a share of the treasury shares purchased during the year? (Assume no treasury stock was sold during the year.)

e. If no dividends were paid, what was net income for the year ending September 30, 2008 ?

Transcribed Image Text:

Tick Tock Inc. Consolidated Balance Sheets (amounts in thousands, except share data) Shareholders' equity: September 30, 2008 September 30, 2007 Common stock, $0.10 par value; 450,000 shares issued and and 425,000 shares issued and outstanding at September 30, 2007. shares outstanding at September 30, 2008; shares 45.0 42.5 Additional paid-in-capital 9,475 8,925 Retained earnings 25,237 21,450 Treasury stock at cost, 21,340 shares at Sept. 30, 2008, and 17,148 shares at Sept. 30, 2007 (448.1) (343)