Question
Examining the Effect of Stock Transactions Year 1: Noreen Company issues 10,000 shares of its no-par common stock for $30/share in cash. Year 2: Noreen
Examining the Effect of Stock Transactions Year 1: Noreen Company issues 10,000 shares of its no-par common stock for $30/share in cash. Year 2: Noreen Company buys 1,000 shares of its no-par common stock for $28/share in cash. Year 3: Noreen Company declares but has not yet paid a dividend on its no-par common stock of $2 per share. The company's basic earnings per share were $10 in the third year.
Indicate the effect (increase, decrease, no effect) of each of these stock decisions for each year on the items listed.
| Year | Total Assets | Total Liabilities | Total Stockholders' Equity | EPS | Operating Income |
|---|---|---|---|---|---|
| 1 | AnswerIncreaseDecreaseNo effect | AnswerIncreaseDecreaseNo effect | AnswerIncreaseDecreaseNo effect | AnswerIncreaseDecreaseNo effect | AnswerIncreaseDecreaseNo effect |
| 2 | AnswerIncreaseDecreaseNo effect | AnswerIncreaseDecreaseNo effect | AnswerIncreaseDecreaseNo effect | AnswerIncreaseDecreaseNo effect | AnswerIncreaseDecreaseNo effect |
| 3 | AnswerIncreaseDecreaseNo effect | AnswerIncreaseDecreaseNo effect | AnswerIncreaseDecreaseNo effect | AnswerIncreaseDecreaseNo effect | AnswerIncreaseDecreaseNo effect |
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External Auditing And Assurance An Irish Textbook
Authors: Martin Nolan, Christine Nangle
2nd Revised Edition
9781910374696
