Reference no: EM132486670
Question 1: Discuss Treasury Stock transactions over the past three years and explain its affect on total stockholder's equity and retained earnings.
Category: Retained Earnings
Question 1. Use the following equation and show how the Retained Earnings account has changed over the past two years.
Retained earnings, beginning balance
+ Prior period adjustments
= Retained earnings, adjusted balance
+ Net Income
- Retirement of Treasury stock
- Dividends
= Retained earnings, ending balance
Category: Analysis
Question 1. Calculate The following ratios for the most recent two years and comment on the results of your ratio analysis. How do the results for your company compare to industry averages?
a. Return on stockholder's equity: = (net income - preferred dividends)/average stockholder's equity
b. Earnings per share (EPS)
c. Price-earnings (PE) ratio
d. Payout ratio