Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Finning International Inc., headquartered in Edmonton, describes itself as the world's largest Caterpillar equipment dealer, with operations in Western Canada, South America, the United Kingdom,

image text in transcribedimage text in transcribedimage text in transcribedimage text in transcribed

Finning International Inc., headquartered in Edmonton, describes itself as "the world's largest Caterpillar equipment dealer," with operations in Western Canada, South America, the United Kingdom, and Ireland. As at December 31, 2016, the company had a straightforward share capital structure, described in Note 7 to the financial statements as: The Company is authorized to issue an unlimited number of preferred shares without par value, of which 4.4 million are designated as cumulative redeemable preferred shares. The Company had no preferred shares outstanding for the years ended December 31, 2016 and 2015. The Company is authorized to issue an unlimited number of common shares. Exhibit 11.14 contains Finning International Inc's 2016 consolidated statement of shareholders' equity. All amounts are in thousands. EXHIBIT 11.14 Excerpt from Finning International Inc.'s 2016 Annual Report Share Capital Accumulated Other Comprehensive Income (Loss) Foreign Currency Translation and Gain (Loss) on Gain Net (Loss) on Contributed Investment Cash Flow Retained Surplus Hedges Hedges Earnings $ 39 $114 $(13) $1,408 (161) 213 3 62 213 3 (99) Number of Shares 172,370,255 Amount $583 Total $2,131 (161) 278 - 117 44,343 1 - 1 LITI 7 (46) (4,383,170) (14) (31) (124) 7 (91) (124) 1 (Canadian $ millions, except number of shares) Balance, January 1, 2015 Net loss Other comprehensive income Total comprehensive income (loss) Issued on exercise of share options Share option expense Repurchase of common shares Dividends on common shares Adjustment for change in accounting policy (Note 18a) Balance, December 31, 2015 Net income Other comprehensive (Loss) income Total comprehensive (loss) income Issued on exercise of share options Share option expense Dividends on common shares Balance, December 31, 2016 1 - 9 1 9 $ (1) 168,031,428 $570 $ $327 $2,050 - 65 $1,154 65 (13) 52 - (84) (84) - - 3 1 1 (96) (31) 1 1 135,774 3 (3) 11 1 - 5 5 11 (123) $1,083 (123) $1,901 168,167,202 $573 $ 2 $243 $ - How many common shares were outstanding on December 31, 2016? Outstanding common shares 168,167,202 What was the average issue value of those shares? (Enter amount in millions.) Average issue value $ 573,000,000 e Textbook and Media Your answer is incorrect. What was Finning's reported net income for 2016? Net income $ 52,000,000 million How much did it pay out in dividends? (Enter amount in millions.) Pay out in dividends $ 123,000,000 million How much did it pay out in dividends? (Enter amount in millions.) Pay out in dividends $ 123,000,000 million What was its dividend payout ratio? (Round answer to 0 decimal places, e.g. 15%.) Dividend payout ratio 11 % eTextbook and Media X Your answer is incorrect. Using only the statement of shareholders' equity, calculate the return on equity for Finning for 2016 and 2015. (Round answers to 1 decimal place, e.g. 15.2%. Enter negative answers using either a negative sign preceding the number e.g.-15.2 or parentheses e.g. (15.2).) Return on equity ratio 2016 11.4 % 2015 -27.9 %

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting And Reporting

Authors: Barry Elliott, Jamie Elliott

3rd Edition

0139488944, 978-0139488948

More Books

Students also viewed these Accounting questions