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42 on credit. Assets Cash and short-term investments Accounts receivable (net) Merchandise inventory Property, plant, and equipment Total assets $ 30,000 20,000 15,000 185,000 $
42
on credit. Assets Cash and short-term investments Accounts receivable (net) Merchandise inventory Property, plant, and equipment Total assets $ 30,000 20,000 15,000 185,000 $ 250,000 Liabilities and Stockholders' Equity Current liabilities $ 45,000 Long-ter liabilities 70,000 Stockholders' equity - common 135,000 Total liabilities and stockholders' equity $ 250,000 $ Income Statement Sales Cost of merchandise sold Gross profit Operating expenses Interest expense Net income $ 85,000 45,000 40,000 (15,000) (5,000) 20,000 $ Number of shares of common stock outstanding Market price of common stock Total dividends paid Net cash flows from operating activities 6,000 $ 20 $ 9,000 $ 30,000 Total liabilities and stockhoiders' equity 200,000 $ Income Statement Sales Cost of merchandise sold Gross profit Operating expenses Interest expense Net income $ 85,000 45,000 40,000 (15,000) (5,000) 20,000 $ Number of shares of common stock outstanding 6,000 Market price of common stock 20 Total dividends paid $ 9,000 Net cash flows from operating activities $ 30,000 Using the data provided, what are the dividends per common share for Watson, Inc.? a) $1.50 b) $20.00 c) $0.67 ) d) $3.00 Step by Step Solution
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