Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Following is information relating to Watson, Inc. Assume that all balance sheet accounts represent both average and ending balance figures and that all sales were
Following is information relating to Watson, Inc. Assume that all balance sheet accounts represent both average and ending balance figures and that all sales were on credit.
Assets | |||
Cash and short-term investments | $ 30,000 | ||
Accounts receivable (net) | 20,000 | ||
Merchandise inventory | 15,000 | ||
Property, plant, and equipment | 185,000 | ||
Total assets | $ 250,000 | ||
Liabilities and Stockholders' Equity | |||
Current liabilities | $ 45,000 | ||
Long-term liabilities | 70,000 | ||
Stockholders' equity - common | 135,000 | ||
Total liabilities and stockholders' equity | $ 250,000 | ||
Income Statement | |||
Sales | $ 85,000 | ||
Cost of merchandise sold | 45,000 | ||
Gross profit | $ 40,000 | ||
Operating expenses | (15,000) | ||
Interest expense | (5,000) | ||
Net income | $ 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.?
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