Question : 94. Designs, Inc. had 4,000 shares of $7, $100 par preferred : 1229398

94. Designs, Inc. had 4,000 shares of $7, $100 par preferred stock and 50,000 shares of common stock outstanding throughout 2009. During 2009, Designs declared a dividend of $7 per share on its common stock. Compute earnings per share for 2009 if Designs’ income statement showed net income of $630,000. 
A. $7.00 per share.
B. $6.00 per share.
C. $12.04 per share.
D. $12.60 per share.

95. Unique Corp. had 50,000 shares of $5 preferred stock, $100 par, and 100,000 shares of $1 par common stock outstanding throughout the year. Net income for the year was $780,000, and Unique declared and distributed a cash dividend of $1 per share on its common stock. Earnings per share amounted to: 
A. $7.80.
B. $1.00.
C. $5.30.
D. $2.30.

96. On January 1, 2010, Edward Corporation had 10,000 shares of $6 par value common stock and 10,000 shares of 8%, $100 par value convertible preferred stock outstanding. The preferred shares carried a 3 for 1 conversion privilege. On October 1, 2010, all of the preferred shares were converted to common. What number of shares must Edward use in computing basic earnings per share at December 31, 2010? 
A. 17,500.
B. 40,000.
C. 7,500.
D. 10,000.

97. For the current year, Voque Company reported basic earnings per share of $8 and diluted earnings per share of $3. The difference between these figures is attributable to outstanding shares of convertible preferred stock. If all this preferred stock had actually been converted into common stock at the beginning of the current year, Voque Company would have reported only one earnings per share amount, which would have been: 
A. $8.
B. $5.
C. $3.
D. Cannot be determined.

98. At the beginning of the current year, Elite Corporation had 200,000 shares of $1 par common stock outstanding and had retained earnings of $4,800,000. During the year, the company earned $1,675,000, declared a 10% stock dividend when the price of stock was $28 per share, and paid a year-end cash dividend of $3 per share. (The cash dividend was paid after the stock dividend had been distributed.) What was Elite Corporation’s retained earnings at the end of the year? 
A. $5,915,000.
B. $5,255,000.
C. $5,311,000.
D. $3,580,000.

The stockholders’ equity section of the balance sheet of Caesar Corporation at December 31, 2009, appears as follows: (The company engaged in no treasury stock transactions prior to 2009)
 

99. Refer to the information above. What was the original cost of the treasury stock to Caesar Corporation? 
A. $5 per share.
B. $7 per share.
C. $8 per share.
D. Cannot be determined.

100. Refer to the information above. What was the average issue price per share of preferred stock? 
A. $100.
B. $110.
C. $115.
D. $5.

101. Refer to the information above. How many shares of common stock are outstanding? 
A. 100,000.
B. 95000.
C. 75,000.
D. 70,000.

102. Refer to the information above. A small stock dividend of 1,000 shares was declared and distributed during 2009. What was the market price per share on the date of declaration? 
A. $8.00 per share.
B. $2 per share.
C. $16 per share.
D. $28.00 per share.

103. Refer to the information above. If Caesar Corporation had reacquired 7,000 shares of treasury stock early in 2009, then some treasury stock must have been sold during 2009 for: 
A. $8 per share.
B. $12.00 per share.
C. $1.50 per share.
D. $5 per share.