Reference no: EM133070708

Question - Q1. Arrange the following items in proper balance sheet presentation (Prepare a formal Balance Sheet review page 31 for example).

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

Q2. 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?