On January 1, 2018, the general ledger of Grand Finale Fireworks includes the following account balances: Debit Credit 43,600 Accounts Cash Accounts Receivable 4b 400 Equipment Accumulated Depreciation 73.000 $ 9.900 Common Stock. $1 par value Additional Paid-in Capital Retained Earnings 19.000 89.000 37,900 $171,300 Totals $171,300 January 2 IsSUe January 9 January 10 Purchase additional supplies on account, $5,800 additional 2.100 shares of S1 par value common stock for $42,000 Provide services to customers on account, $16,300. 2 per share. January 15 Pay cash January 21 Provide services naccounts payable, $17.400. customers for cash, $50.000 lanuary 29 Decare a cash dividend of $0.40 per share to all shares outstanding on January 29. The dividend is payable on February 15. (Hint: Grand Finale Fireworks had 19,000 shares outstanding on January 1, 2018 and January 30 Reissue 700 shares of treasury stock for $24 per share. January 31 Pay cash for salaries during January, $42,900. The following information is available on January 31, 2018. a. Unpaid utilities for the month of January are $7,100. c. Depreciation on the equipment for the month of January is calculated using the straight-line method. At the time the equipment was purchased, the company estimated a service life of three years and a residual value of $10,900. d. Accrued income taxes at the end of January are $2,000. Utilities expense 11 Jan 31 Utilities payable Supplies expense 12 Jan 31 Supplies 13 Jan 31 Depreciation expense Accumulated depreciation 14 Jan 31 Income tax expense Income tax payable Service revenue 15 Jan 31 General Journal General Income Requirement Trial Balance Analysis Balance Sheet Ledger Statement Enter your Return on Equity value to one decimal place and earnings per share value to 2 decimal places. Analyze the following for Grand Finale Fireworks : (a) Calculate the return on equity for the month of January. If the average return on equity for the industry for January is 2.40%, is the company more or less profitable than other companies in the same industry? The return on equity is: Is the company more or less profitable than other companies? (b) How many shares of common stock are outstanding as of January 31, 2018? The number of common shares outstanding as of January 31, 2018 is (c) Calculate earnings per share for the month of January. (Hint: To calculate average shares of common stock outstanding take the beginning shares outstand ing plus the ending shares outstanding and divide the total by 2.) If earnings per share was $2.40 last year (i.e, an average of $0.20 per month). earnings per share for January 2018 better or worse than last year's average? Earnings per share is: Is earnings per share for January 2018 better or worse than last year's average? Analysis Balance Sheet No Date Account Title Debit Credit Cash 1 Jan 02 42,000 Common stock 2,100 Additional paid-in capital 39,900 2 Jan 09 Accounts receivable 16,300 Service revenue 16,300 3 Jan 10 Supplies 5,800 Accounts payable 5,800 Treasury stock 4 Jan 12 26,400 Cash 26,400 Accounts payable 5 Jan 15 17,400 Cash 17,400 6 Jan 21 Cash 50,000 50,000 Service revenue Cash 7 Jan 22 17,500 17,500 Accounts receivable Jan 29 Dividends 7,960 Dividends payable 7,960 Jan 30 Cash 16,800 Treasury stock 15,400 Additional paid-in capital 1,400 Salaries expense 10 Jan 31 42,900 Cash 42,900