debt and equity
Show how the following transaction will impact the company's balance sheet. The shareholders authorized the board to increase the authorized number of shares Shares authorized 28,000.0 Of the shares authorized, a number are issued Shares issued 2,100.0 Issue price 49.0 Par value 2.8
- Cash up 102,900.0, common stock up 5,880.0, additional paid in capital up 97,020.0 - ash up 1,269,100.0, common stock up 72,520.0, preference stock up 1,196,580.0 - Cash up 1,372,000.0, retained earnings up 1,372,000.0 - Cash up 102,900.0, common stock up 102,900.0
Show how the following transaction will impact the company's balance sheet. The shareholders authorized the board to increase the authorized number of shares . Shares authorized 20,000.0 Of the shares authorized, a number are issued. Shares issued 1,500.0 Issue price 35.0 Par value 2.0
- Cash up 647,500.0, common stock up 37,000.0, preference stock up 610,500.0 - Cash up 700,000.0, retained earnings up 700,000.0 - Cash up 52,500.0, common stock up 52,500.0 - Cash up 52,500.0, common stock up 3,000.0, additional paid in capital up 49,500.0 (Common stock increases by the shares issued multiplied by par, and APIC increases by the shares issued multiplied by issue price less par.)
Calculate net debt. Cash and cash equivalents 2,646.7 Short term borrowings 349.2 Long term borrowings 2,402.5 Commercial paper (liability) 275.8 Capital / finance lease 1,375.8 Accounts receivable 69.2 Total liabilities 14,423.3 Inventory 4.2
1,756.6 (349.2+2402.5+275.8+1375.8-2646.7) 1,752.4 11,776.6 1,687.4
Calculate net debt. Cash and cash equivalents 3,176.0 Short term borrowings 419.0 Long term borrowings 2,883.0 Commercial paper (liability) 331.0 Capital / finance lease 1,651.0 Accounts receivable 83.0 Total liabilities 17,308.0 Inventory 5.0
2,025.0 2,103.0 2,108.0 (= 419.0 + 331.0 + 2,883.0 + 1,651.0 - 3,176.0) 14,132.0
Calculate total debt.
4,170.7 4,545.4 4,117.1 2,779.3
Calculate the retained earnings balance at the end of the period. Preference shares have been treated as debt in the financials. Net income 100,550.0 Retained earnings, end of prior year 397,150.0 Common stock 1,000,000.0 Preference shares 200,000.0 Preference shares dividend 7.15% Common stock dividend announced and paid 40,220.0
457,480.0 (= 397,150.0 + 100,550.0 - 40,220.0) 471,780.0 385,980.0 443,180.0
Calculate total debt
5,146.4 5,213.4 Total debt includes both current and long term interest bearing items. 3,474.1 5,681.7
Calculate the outstanding number of shares at the period end. Authorised share capital 8,500,000.0 Shares issued and outstanding beginning of year 1,317,500.0 Shares issued in the period 212,500.0 Share buyback in the period 93,500.0
8,619,000.0 119,000.0 1,436,500.0 (=1317500+212500-93500) 1,623,500.0
At the beginning of the year a business had an authorized share capital of 5,000,000.0 shares of which 775,000.0 were issued and are outstanding. The business issues an extra 125,000.0 to raise finance during the period. The business conducted a buy back of 55,000 shares during the period to fulfill employee share options. These options will be exercised at a later date. What is the outstanding number of shares at the period end?
845,000.0 Outstanding shares is the outstanding shares at the beginning of the year, plus new issue of shares less shares bought back. In this question issued and outstanding were the same, but take care when treasury shares are involved. 955,000.0 70,000.0 5,070,000.0
Calculate the retained earnings balance at the end of the period. Preference shares have been treated as debt in the financials. Net income 201,100.0 Retained earnings, end of prior year 794,300.0 Common stock 2,000,000.0 Preference shares 400,000.0 Preference shares dividend 14.30% Common stock dividend announced and paid 80,440.0
857,760.0 914,960.0 (Ending retained earnings is calculated as prior year figure, plus net income, less common dividend. Preference dividend is not subtracted as it is a debt item and is already included in net income as interest.) 972,160.0 628,960.0
