QUESTION 9 A corporation reported the following in their balance sheet Common stock, $1 par, 100,000 shares authorized, shares issued $ 40,000 Additional paid in capital 160,000 Retained Earnings 100,000 Treasury Stock (1,000 shares at cost) (6,000) Total shareholders' equity $294,000 What is the average price paid by the stockholders for a share of common stock $6 00 $7 35 $5 00 $1 00 QUESTION 10 How many of these will decrease a corporation's retained earnings a stock split declaring a stock dividend net income buying treasury stock a prior period adjustment (prior income was overstated) One Two Three Four Five The notes to the financial statements are NOT an integral part of the financial statements include a great deal of detailed information that is only rarely used are used by many entities to hide information from the reader of the financial statements by including in the notes information that should be shown in detail on the financial statements themselves should be referred to if more than a cursory, and perhaps misleading impression of a firm's financial position and its results of operations is to be achieved Which of the following will increase a company's earnings per share for the year issuing additional shares of stock during the year buying additional shares of treasury stock during the year selling all the stock it held as treasury stock at the beginning of the year issuing a stock dividend to shareholders Assume Taylor Sons Cabinet Makers had a gross profit ratio of 30 , 35 and 40 over the most recent three years Which statement below is the best interpretation of the data the company has been decreasing its selling price but selling more units The company is selling more inventory than in prior years The company is increasing its selling price per unit or having its inventory costs per unit decrease The company may be having trouble selling its inventory

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QUESTION 9 A corporation reported the following in their balance sheet: Common stock, $1 par, 100,000 shares authorized, ? shares issued $ 40,000 Additional paid-in-capital

QUESTION 9

A corporation reported the following in their balance sheet:

Common stock, $1 par, 100,000 shares
authorized, ? shares issued	$ 40,000
Additional paid-in-capital	160,000
Retained Earnings	100,000
Treasury Stock (1,000 shares at cost)	(6,000)
Total shareholders' equity	$294,000

What is the average price paid by the stockholders for a share of common stock?

		$6.00
		$7.35
		$5.00
		$1.00

QUESTION 10

How many of these will decrease a corporation's retained earnings?
- a stock split
- declaring a stock dividend
- net income
- buying treasury stock
- a prior period adjustment (prior income was overstated)
One

Two

Three

Four

Five

The notes to the financial statements:

		are NOT an integral part of the financial statements.
		include a great deal of detailed information that is only rarely used.
		are used by many entities to hide information from the reader of the financial statements by including in the notes information that should be shown in detail on the financial statements themselves.
		should be referred to if more than a cursory, and perhaps misleading impression of a firm's financial position and its results of operations is to be achieved.

Which of the following will increase a company's earnings per share for the year?

		issuing additional shares of stock during the year.
		buying additional shares of treasury stock during the year.
		selling all the stock it held as treasury stock at the beginning of the year.
		issuing a stock dividend to shareholders.

Assume Taylor & Sons Cabinet Makers had a gross profit ratio of 30%, 35% and 40% over the most recent three years. Which statement below is the best interpretation of the data?

		the company has been decreasing its selling price but selling more units.
		The company is selling more inventory than in prior years.
		The company is increasing its selling price per unit or having its inventory costs per unit decrease.
		The company may be having trouble selling its inventory.