Question
Effect of Financing on Earnings Per Share BSF Co., which produces and sells skiing equipment, is financed as follows: Bonds payable, 10% (issued at face
Effect of Financing on Earnings Per Share
BSF Co., which produces and sells skiing equipment, is financed as follows:
Bonds payable, 10% (issued at face amount) | $1,850,000 |
Preferred 2% stock, $20 par | 1,850,000 |
Common stock, $25 par | 1,850,000 |
Income tax is estimated at 60% of income.
Round your answers to the nearest cent.
a. Determine the earnings per share of common stock, assuming that the income before bond interest and income tax is $721,500. $fill in the blank 1 per share
b. Determine the earnings per share of common stock, assuming that the income before bond interest and income tax is $906,500. $fill in the blank 2 per share
c. Determine the earnings per share of common stock, assuming that the income before bond interest and income tax is $1,091,500. $fill in the blank 3 per share
By the Month Inc. sold 19,500 annual magazine subscriptions for $42 during December 20Y4. These new subscribers will receive monthly issues, beginning in January 20Y5. By the Month Inc. issued a $154,800, 180day, 5% note payable on December 1, 20Y4. On March 31, 20Y5, By the Month Inc. had accounts payable of $22,000 and accrued wages payable of $6,700.
Prepare the Current Liabilities section of the balance sheet for By the Month Inc. on March 31, 20Y5. Do not round intermediate calculations and round your final answers to the nearest dollar. (Assume 360 days in a year.)
Current liabilities: | |
Accounts payableFederal income taxes expenseFederal income taxes payableSalesSubscription revenue receivableAccounts payable | $Accounts payable |
Accrued wages payableFederal income taxes expenseFederal income taxes payableSalesSubscription revenue receivableAccrued wages payable | Accrued wages payable |
Accrued interest payableFederal income taxes expenseFederal income taxes payableSalesSubscription revenue receivableAccrued interest payable | Accrued interest payable |
Federal income taxes expenseFederal income taxes payableNotes payableSalesSubscription revenue receivableNotes payable | Notes payable |
Accounts payableAdvances on magazine subscriptionsFederal income taxes expenseSalesSubscription revenue receivableAdvances on magazine subscriptions | Advances on magazine subscriptions |
Total current liabilities | $fill in the blank 11 |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started