Bonner Company began business this year and immediately sold 600,000 common shares for $18.000.000 cash and paid $1,000,000 in common dividends. At midyear, the firm bought back some of its own shares. The company reports the following additional information at year-end:
Net income …………………………………………………………………. $5,000,000
Common stock, at par . ……………………………………………….. $6,000,000
Retained earnings beginning of year ……………………………. $ 0
Common shares authorized: ……………………………………….. 1,000,000
Common shares outstanding at year’s end: …………………550,000
a. What was the average sales price of a common share when issued?
b. What is the par value of the common?
c. How much is in the Additional paid-in capital account at the end of the year?
d. Determine the retained earnings amount at the end of the year.
e. How many shares of stock are in the treasury at the end of the year?
f. Compute BEPS.
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