Wave Corporation began the current year with a retained earnings balance of $20,000. During the year, the company corrected an error made in the prior year, which was a failure to record depreciation expense of $6,000 on equipment. Also, during the current year, the company earned net income of $18,000 and declared cash dividends of $6,000. Compute the year-end retained earnings balance. O a. $32,000 O b. $20,000 Oc. $26,000 Od. $38,000 If earnings per share changes from $3.30 to $2.60, what does this indicate about the company's profitability? a. A favorable change in the company's profitability is indicated. Ob. An unfavorable change in the company's ability to pay current liabilities is indicated. Oc. An unfavorable change in the company's profitability is indicated. Od. Profitability cannot be determined from the information given. A corporation has 60,000 shares of $25 par value stock outstanding. If the corporation issues a 3-for-1 stock split, the number of shares outstanding after the split will be Oa. 15,000 shares. b. 180,000 shares. Oc. 240,000 shares. C. Od. 60,000 shares. Treasury stock that had been purchased for $8,000 last month was reissued this month for $8,900. The entry to journalize the reissuance would include a credit to a. Paid-In Capital in Excess of Par-Common Stock for $900. Ob. Treasury Stock for $8,900. Oc. Paid-In Capital from Sale of Treasury Stock for $8,900. C. Od. Paid-In Capital from Sale of Treasury Stock for $900. The charter of a corporation provides for the issuance of 131,000 shares of common stock. Assume that 90,000 shares were originally issued and 20,000 were subsequently reacquired. What is the number of shares outstanding? O a. 70,000 O b. 110,000 c. 20,000 d. 90,000 The charter of a corporation provides for the issuance of 131,000 shares of common stock. Assume that 50,000 shares were originally issued and 10,000 were subsequently reacquired. What is the amount of cash dividends to be paid if a $3 per share dividend is declared? O a. $120,000 O b. $30,000 Oc. $250,000 Od. $150,000 Last year, Clark Company had net income of $300,000 and preferred dividends of $25,000. The average number of common shares outstanding was 120,000. Its earnings per share were $2.29. This year, its income and preferred dividends are the same, but the company issued additional common shares of stock, increasing its common shares outstanding to 150,000 shares. What are its earnings per share in the current year? O a. $1.83 O b. $2.17 O c. $2.29 O d. $2.00