Reference no: EM131427314
The balance sheet of Alex Bros. follows:
Of the 200,000 common shares authorized, 50,000 shares were issued for $8 each when the company began operations. There have been no common stock issuances since; 45,000 shares are currently outstanding, and 5,000 shares are held in treasury. Net income for the year just ended was $45,000. REQUIRED:
a. Compute the par value of the issued common shares.
b. Compute the book value of each common share.
c. At what average price were the treasury shares purchased?
d. Alex is considering reissuing the 5,000 treasury shares at the present market price of $10 per share. What effect would this action have on the company's debt/equity ratio, book value per outstanding share, and earnings-per-share ratio?
|
Prepare journal entries for each transaction
: What is the significance of par value from a financial accounting standpoint? Is par value significant in any economic sense?
|
|
Preventing system problems
: After the system has been completely installed, a team member states that the systems analysts will now be in charge only of "putting out fires" experienced within the new system. How would you react to this statement?
|
|
Write a memo that communicates the budget situation
: Write a memo that communicates the budget situation to the rest of the team. Suggest three ways to improve an underperforming team member.
|
|
Repeat analysis using an appropriate chi square procedure
: Test the appropriate hypotheses, using the twoproportion z-procedure.- Repeat the analysis, using an appropriate chi-square procedure.
|
|
Compute the book value of each common share
: Alex is considering reissuing the 5,000 treasury shares at the present market price of $10 per share. What effect would this action have on the company's debt/equity ratio, book value per outstanding share, and earnings-per-share ratio?
|
|
Determine the type of team that would make sense
: An executive summary, or management summary, is a short document or section of a document, produced for business purposes, that summarizes a longer report or proposal or a group of related reports in such a way that readers can rapidly become acqu..
|
|
Blog on data mining
: Create a blog on Data Mining and write on any topic of your choice. Share the link with your classmates. You must visit at least two blogs of your classmates, and actually respond to their blogs with not less than 350 words
|
|
Will you conduct a test of homogeneity or independence
: Will you conduct a test of homogeneity or independence? Why?- Test an appropriate hypothesis.- State your conclusion, including an analysis of differences you find (if any).
|
|
Finding the bridges in a graph
: Suppose G is a connected graph. An edge e whose removal disconnects the graph is called a bridge. Give a linear-time algorithm for finding the bridges in a graph. Express your solution in prose, not in pseudocode.
|