ABC Corp’s December 31, 2019 balance sheet shows Retained Earnings balance of $300,000. The company paid cash dividends
Posted: Tue Jan 18, 2022 12:58 pm
ABC Corp’s December 31, 2019 balance sheet shows Retained
Earnings balance of $300,000. The company paid cash dividends of
$5,000 during 2019, and the December 31, 2018 balance sheet
Retained Earnings balance was $240,000.
a. How much did ABC Corp earn during 2019? (use an Excel formula
for the calculation)
b. Calculate the December 31, 2019 EPS, assuming that there were
100,000 common shares outstanding throughout 2019. (use an Excel
formula for the calculation)
c. If ABC Corp earned $35,000 and paid $8,000 in dividends in 2020,
what is the balance of retained earnings on December 31,
2020?
d. Calculate the December 31, 2020 EPS, assuming there was no
change in the number of common shares outstanding.
Earnings balance of $300,000. The company paid cash dividends of
$5,000 during 2019, and the December 31, 2018 balance sheet
Retained Earnings balance was $240,000.
a. How much did ABC Corp earn during 2019? (use an Excel formula
for the calculation)
b. Calculate the December 31, 2019 EPS, assuming that there were
100,000 common shares outstanding throughout 2019. (use an Excel
formula for the calculation)
c. If ABC Corp earned $35,000 and paid $8,000 in dividends in 2020,
what is the balance of retained earnings on December 31,
2020?
d. Calculate the December 31, 2020 EPS, assuming there was no
change in the number of common shares outstanding.