Questions -
Q1. From the following data:
Retained earnings, December 31, 2011 $ 613,000
Net decrease in total assets during 2011 93,500
Net increase in accounts receivable in 2011 21,500
Dividends declared and paid in 2011 84,000
Proceeds from issuance of bonds during 2011 221,000
Net loss for the year ended December 31, 2011 57,500
Required: Calculate the Retained Earnings balance as of December 31, 2010.
Q2. Zipir Inc. Inc., did not pay dividends in 2009 or 2010, even though 47,600 shares of its 6.5%, $60 par value cumulative preferred stock were outstanding during those years. The company has 267,000 shares of $1.5 par value common stock outstanding.
Required:
(a) Calculate the annual dividend per share obligation on the preferred stock.
(b) Calculate the amount that would be received by an investor who has owned 290 shares of preferred stock and 310 shares of common stock since 2008 if a $.10 per share dividend on the common stock is paid at the end of 2011.