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View Full Version : How to do this Accounting question?


Sarahwills
Dec 1, 2012, 09:58 PM
Income Statement for Company A


Sales 7406, Earning before Income taxes (EBIT) 795, Interest Expense (net) 195, Income before taxes 600, Income taxes 206, Tax rate 34%, Net Income 394, Preferred Dividends 0, Net Income to Common 394, Common Shares Outstanding (millions) 201


Balance Sheet for Company A:


Current Asset $1367, Timberland Asset 615, Property, plants and equipment 5854, Other Assets 429, Total Assets $8265


Current Liabilities $1816, Long Term debt $1585, Deferred Taxes 1000, Preferred Equity 0, Common Equity 3864, Total Liabilities and Equity $8265


Income Statement for Company B:


Sales 1793, Earning before Income Taxes (EBIT) 145, Interest Expense (net) 8, Income before taxes 137, Income taxes 46, Tax rate 34%, Net Income 91, Common Shares Outstanding (millions) 38


Balance Sheet for Company B:


Current Asset $509, Timberland Asset 518, Property, plants and equipment 1037, Other Assets 40, Total Assets $2104


Current Liabilities $195, Long Term debt $589, Deferred Taxes 153, Equity 1167, Total Liabilities and Equity $2104


How do calculate the Earnings per share and Annual Dividend per share for Company A and Company B? I've been calculating for hours and couldn't seem to find it. I really seek for your help...




Thank you!