Chapter 14 Instructor Solutions Manual

CHAPTER 14 Corporations: Dividends, Retained Earnings, and Income Reporting Instructor Solutions Manual, Searchable 50 page pdf
Corporations: Dividends, Retained Earnings, and Income Reporting
Examples:
KERNS INC.
Retained Earnings Statement
PERSINGER INC.
Retained Earnings Statement
DIXEN CORPORATION
Income Statement
ALPHA CENTURI CORPORATION
FELTER CORPORATION
Retained Earnings Statement
SASHA COMPANY
KELLY GROUCUTT COMPANY
ORTIZ INC.
Balance Sheet (Partial)
PATEL CORPORATION
Income Statement
MIKE SINGLETARY CORPORATION
CAROLINAS CORPORATION
HASHMI COMPANY
DOLD CORPORATION
PATTINI CORPORATION
YADIER INC.
Stockholders’ Equity Section of Balance Sheet
WEISER CORPORATION
GIBSON, INC.
YAKIMA CORPORATION
CARNE CORPORATION
GARCIA INC.
Stockholders’ Equity Section of Balance Sheet

According to the Consolidated Statement of Common Shareholders’ Equity,
the company declared dividends on common stock of $2,306 million
during the year-ended December 29, 2007.

The return on common stockholders’ equity can be used to compare
the profitability of two companies. It shows how many dollars of net
income were earned for each dollar invested by the owners. Since this
ratio is expressed as a percent instead of a dollar amount like earnings
per share, it can be used to compare PepsiCo and Coca-Cola. During
2007, PepsiCo was 12% more profitable than Coca-Cola based on their
respective returns on common stockholders’ equity. Earnings per share
measures cannot be compared across companies because they may
use vastly different numbers of shares to finance the company.

FERNANDEZ, INC.
Retained Earnings Statement

Companies issue stock dividends instead of cash dividends to satisfy
stockholders’ dividend expectations without spending cash and to
increase the marketability of the corporation’s stock.


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