1. A company declared a $0.70 per share cash dividend. The company has 110,000 shares authorized, 47,000 shares issued, and 44,000 shares of common stock outstanding. What is the journal entry to record the dividend declaration?

a) Debit Dividends and credit Dividends Payable for $30,800

b) Debit Dividends Payable and credit Cash for $32,900

c) Debit Dividends and credit Dividends Payable for $32,900

d) Debit Dividends Payable and credit Cash for $77,000

2. The Retained Earnings balance was $24,700 on January 1. Net income for the year was $20,800. If Retained Earnings had a credit balance of $27,400 after closing entries were made for the year, and if additional stock of $7,000 was issued during the year, what was the amount of dividends declared during the year?

a) $27,800

b) $11,100

c) $18,100

d) $30,500

3. A company reported net income of $8.0975 million. At the beginning of the year, 3.85 million shares of common stock were outstanding and at the end of the year, 4.05 million shares were outstanding. No dividends were declared. The EPS is approximately:

a) $1.02

b) $2.10

c) $2.05

d) $2.00

4. A company has net income of $20.60 million. Stockholders' equity at the beginning of the year is $57.55 million and, at the end of the year, it is $88.15 million. The only change to stockholders' equity came from net income. The return on equity ratio is approximately:

a) 0.28

b) 4.28

c) 0.36

d) 0.23