Question : 40) Team Instructions: Divide the class into teams of three : 1253391

 

40) Team Instructions: Divide the class into teams of three or four people. Each team member should work the following problem separately outside of class. Then give the students time in class to compare answers with their teammates and put together a final correct copy of the problem. Each team should turn in only one copy of the problem for grading, along with a copy of the annual report that it used. All team members will receive the same grade.

 

Provide students with copies of real merchandising companies’ annual reports, or give students the Web addresses of real merchandising companies and ask them to print out the annual reports. All team members should work with the same company’s annual report.

 

Answer the following questions using the annual report assigned to your team:

 

1.

Does the company have any preferred stock?

 

2.

What is the par value of the company’s common stock?

 

3.

What is the total amount received from issuing common stock?

 

4.

What is the total number of common shares issued by the company?

 

5.

What is the average price at which a share of common stock was issued?

 

6.

Have there been any new shares issued in the most recent year?

 

7.

What is the total amount received from issuing common stock during the most recent year?

 

8.

What is the average price of the common stock issued during the most recent year?

 

9.

Does the company have any treasury stock?

 

10.

Did the company purchase any treasury stock during the most recent year?

 

11.

Which financial statement shows whether any dividends were declared during the year?

 

12.

What is the amount, if any of dividends declared during the year?

 

13.

Which financial statements shows the amount of dividends paid during the year?

 

14.

What is the amount, if any, of dividends paid during the year?

 

15.

What is the net income for the most recent year?

 

16.

What is the company’s earnings per share for the most recent year?

 

17.

Calculate the company’s return on equity for the most recent year.

 

18.

Show the change in retained earnings during the most recent year by filling in the missing information below:

Beginning retained earnings $___________

Plus _______________

Minus _____________

Ending retained earnings $_____________

 

 

41) Team Instructions: Divide the class into teams of three or four people. Each team member should work the following problem separately outside of class. Then give the students time in class to compare answers with their teammates and put together a final correct copy of the problem. All team members will receive the same grade.

 

Use the July and August transactions and financial statements for Team Shirts in your textbook to answer these questions:

 

1.

Calculate the current ratio at August 31.

 

2.

What effect does issuing additional shares of stock for cash have on a company’s current ratio?

 

3.

What effect does purchasing treasury stock for cash have on a company’s current ratio?

 

4.

Calculate return on assets for August.

 

5.

What effect does selling additional shares of stock for cash have on a company’s return on assets?

 

6.

What effect does buying treasury stock for cash have on a company’s return on assets?

 

7.

Calculate the debt-to-equity ratio for August.

 

8.

Calculate the debt-to-equity ratio for July.

 

9.

Did the debt-to-equity ratio increase or decrease?

 

10.

What business event explains the change in the debt-to-equity ratio?

 

11.

What is the par value of a share of Team Shirts’ stock?

 

12.

What is the average market price that all investors, including Sara, paid for a share of Team Shirts’ stock?

 

13.

Calculate earnings per share for the month of August.

 

14.

Calculate return on equity for August.

 

15.

Calculate return on equity for July.

 

16.

Did return on equity improve in August?

 

17.

What business event explains the change in return on equity?