Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

part D) payout ratio, earning per share, & return on common stockholders equity plz The stockholders' equity accounts of Sarasota Corp. on January 1, 2022,

part D) payout ratio, earning per share, & return on common stockholders equity plz
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
The stockholders' equity accounts of Sarasota Corp. on January 1, 2022, were as follows. During 2022, the corporation had the following transactions and events pertaining to its stockholders' equity. Feb. 1 Issued 3,000 shares of common stock for $18,000. Mar. 20 Purchased 600 additional shares of common treasury stock $7 per share. Oct. 1 Declared a 7% cash dividend on preferred stock, payable November 1. Nov. 1 Paid the dividend declared on October 1. Dec. 1 Declared a $0.50 per share cash dividend to common stockholders of record on December 15 , payable December 31,2 Dec. 31 Determined that net income for the year was $170,000. Paid the dividend declared on December 1. Preferred Stock Retained Earning Treasury Stock stock $612,000 tal Stock \begin{tabular}{l} Paid-in Capital \\ pital in Excess of Stated Value-Common Stock \\ pital in Excess of Par Value-Preferred Stock \\ tional Paid-in Capital \\ \hline in Capital \\ \hline :arnings \end{tabular} 294,000 Calculate the payout ratio, earnings per share, and return on common stockholders' equity. (Note: Use the common shares outstanding on January 1 and December 31 to determine the average shares outstanding.) (Round answers to 2 decimal ploces, eg 17.50%

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

Step: 3

blur-text-image

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

CIA Exam Practice Questions Certified Internal Auditor

Authors: The Internal Audit Foundation

1st Edition

163454045X, 978-1634540452

More Books

Students also viewed these Accounting questions

Question

What is RAID storage technology?

Answered: 1 week ago