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1. Arrange the following items in proper balance sheet
presentation:
Accumulated depreciation............$200,000
Retained earnings....110,000
Cash..5,000
Bonds payable.....142,000
Accounts receivable...38,000
Plant and equipment-original cost..720,000
Accounts payable.35,000
Allowance for bad debts...6,000
Common stock, $1 par, 150,000 shares outstanding...150,000
Inventory.66,000
Preferred stock, $50 par, 1,000 shares outstanding.....50,000
Marketable securities.15,000
Investments.20,000
Notes payable.83,000
Capital paid in excess of par (common stock)..88,000
2. Elite Trailer Parks has an operating profit or $200,000. Interest
expense for the year was $10,000; preferred dividends paid were
$18,750; and common dividends paid were $30,000. The tax was
$61,250. The firm has 20,000 shares of common stock outstanding.
a. Calculate the earnings per share and the common dividends per
share for Elite Trailer Parks.
b. What was the increase in retained earnings for the year?
