Prepare statement of retained earnings for the year

Assignment Help Financial Management
Reference no: EM131062948

Retained Earnings Statement Rolt Company began 2013 with a $135,000 balance in retained earnings. During the year, the following events occurred: 1.The company earned net income of $85,000. 2.A material error in net income from a previous period was corrected. This error correction increased retained earnings by $9,870 after related income taxes of $4,230. 3.Cash dividends totaling $12,000 and stock dividends totaling $18,000 were declared. 4.One thousand shares of callable preferred stock that originally had been issued at $105 per share were recalled and retired at the beginning of 2013 for the call price of $110 per share. 5.Treasury stock (common) was acquired at a cost of $25,000. State law requires a restriction of retained earnings in an equal amount. The company reports its retained earnings restrictions in a note to the financial statements.

1. Prepare a statement of retained earnings for the year ended December 31, 2013.

Reference no: EM131062948

Questions Cloud

What is current value of the bond and effective annual rate : You want to earn a real rate of return of 3.64 percent at a time when the inflation rate is 2.84 percent. What is the approximate nominal rate which you must earn? A $40,000 face value bond matures in 64 days and has a bank discount yield of 4.5 perc..
Five-year project has an initial fixed asset investment : A five-year project has an initial fixed asset investment of $295,000, an initial NWC investment of $27,000, and an annual OCF of −$26,000. The fixed asset is fully depreciated over the life of the project and has no salvage value. If the required re..
Current dollar price of security-effective annual rate : A two-year STRIPS sells at an interest rate of 3.84 percent and a three-year STRIPS sells at a rate of 3.97 percent. What is the implied one year interest rate two years from now? Assume the rates are effective annual rates. A $50,000 face value STRI..
Exercise price of an option is fixed : It is April and a trader buys 100 September put options with a strike price of $21. The stock price is $17.2 and the option price is $4.44. At the expiration, the stock price becomes $18.8. Calculate the option profit to the trader. When one buys an ..
Prepare statement of retained earnings for the year : Retained Earnings Statement Rolt Company began 2013 with a $135,000 balance in retained earnings. During the year, the following events occurred: The company earned net income of $85,000. A material error in net income from a previous period was corr..
What is the risk premium on common stock : Foster Company calculation risk premium on its Common stock. What is the risk premium on common stock? Current price per share of common $50.00 Expected Dividend per share next year $3.00 Constant annual dividend growth rate 9% Risk-free rate of retu..
What is the difference between these two WACCs : Sapp Trucking's balance sheet shows a total of noncallable $45 million long-term debt with a coupon rate of 7.00% and a yield to maturity of 5.30 %. This debt currently has a market value of $50 million. The CFO thinks the WACC should be based on mar..
Formulation of the basic time value of money formula : Complete each of the following problems, and be sure to show your work with the appropriate formulation of the basic time value of money formula. Irrigated farmland in Phillips County has been selling at $6,000 per acre. If this farmland is expected ..
What is this project equivalent annual cost : A five-year project has an initial fixed asset investment of $295,000, an initial NWC investment of $27,000, and an annual OCF of −$26,000. The fixed asset is fully depreciated over the life of the project and has no salvage value. If the required re..

Reviews

Write a Review

Financial Management Questions & Answers

  Most important goal of insurance regulation

Which of the following is not a stated purpose of regulation? D. Deal with unique pricing problems that do not allow for full and unrestrained competition B. Maintain insurer solvency C. Promote social goals D. Promote competition among the largest i..

  What is weight of each stock in minimum variance portfolio

Consider two stocks, Stock D, with an expected return of 17 percent and a standard deviation of 33 percent, and Stock I, an international company, with an expected return of 8 percent and a standard deviation of 13 percent. The correlation between th..

  Two alternatives are being offered by the lender

Your money is tied up and you need to borrow $10,000. The following two alternatives are being offered by the lender. Pay $3,288.91 at the end of each year for 5 years, starting at the end of the first year (5 payments total at 18% nominal per year c..

  Best choice for a market index in the regression

Legion, Inc. is a small high tech firm whose stock trades on the NASDAQ. You want to estimate the stock's beta using a regression based on the empirical market line. That requires regressing the stock's returns against the contemporaneous returns on ..

  What are the desired ending direct materials in pounds

If the required materials to be purchased are 18,000 pounds, the production needs are three times the direct materials purchases, and the beginning direct materials are three and a half times the direct materials purchases, what are the desired endin..

  What is the capital conservation buffer

What is the capital conservation buffer and what impact will it have on bank performance and risk?

  Describe financial management in non-profit organizations

discuss financial management in nonprofit organizations and write an essay that compares and contrasts the application

  Achieve without having to raise funds externally

Pierce Furnishings generated $2 million in sales during 2012, and its year-end total assets were $1.3 million. Also, at year-end 2012, current liabilities were $500,000, consisting of $200,000 of notes payable, $200,000 of accounts payable, and $100,..

  The after-tax profit margin is forecasted

Broussard Skateboard's sales are expected to increase by 25% from $8.0 million in 2013 to $10.00 million in 2014. Its assets totalled $4 million at the end of 2013. Broussard is already at full capacity, so its assets must grow at the same rate as pr..

  Discuss convertibles and warrants

Discuss Convertibles and Warrants. Would convertibles and warrants influence your decision to buy or not buy an investment? Give an example.

  What is the amount a person would have to deposit

What is the amount a person would have to deposit today to be able to take out $5000 a year for 10 years from an account earning 8 percent annually?

  What will be the price of the one share

The Know-It-All Co. is a new firm in a rapidly growing industry. The company is planning on increasing its annual dividend by 20% a year for the next 4 years and then decreasing the growth rate to 5% per year. The company just paid its annual dividen..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd