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Question: dally cleaners reported the following information at december 31 2018...

Question details

Dally Cleaners reported the following information at December 31, 2018:

                           Common stock, $2 par, 300,000 shares authorized                                                                               80,000
         Additional paid-in capital                                                                                                                       1,200,000
         Retained earnings                                                                                                                                       5,600,000
                  Total                                                                                                                                                    $6,880,000
         Less: Treasury stock (2,000 common shares at cost)                                                                            68,000
                  Total Stockholders' Equity                                                                                                          $6,948,000

Net Income                                                                                                                 $845,000                                                     

Answer the following questions for Dally Cleaners in the space provided:                                                

  1. How many shares of common stock are authorized?                                          _____________
  2. How many shares of common stock are issued?                                                   _____________
  3. How many shares of common stock are outstanding?                                                         _____________
  4.    How many of the common shares will receive dividends

            when they are paid?                                                                                                                         _____________

  1. How much did Dally Cleaners pay for each share of Treasury stock?             _____________
  2. If a total of $44,800 dividends are paid, how much will

shareholders receive per share?                                                                                  _____________

  1. What is the total amount of contributed capital at December 31, 2018?       _____________

  1. Calculate the EPS (Earnings per share) for 2018.                                                 _____________

  1. Calculate the Price/Earning ratio if each share was selling for $80.75/share. _________


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