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-   -   How to do this Accounting question? (https://www.askmehelpdesk.com/showthread.php?t=720251)

  • Dec 1, 2012, 09:58 PM
    Sarahwills
    How to do this Accounting question?
    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!

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