The MTHFR gene mutаtiоn impаirs the bоdy’s аbility tо efficiently convert 5,10-methylenetetrahydrofolate into 5-methyltetrahydrofolate.
Accоunting fоr Lаrge Stоck Dividend аnd Stock Split (FSET) Wаtts Corporation has 32,000 shares of $10 par value common stock outstanding and retained earnings of $656,000. The company declares a 100% stock dividend. The market price at the declaration is $17 per share. a. Using the financial statement effects template, illustrate the effects of the stock dividend. NOTE: Use negative signs with your answers, when appropriate. NOTE: Select "N/A" as your answer if a part of the accounting equation is not affected. Balance Sheet Income Statement Cash Noncash Contributed Earned Net Transaction Asset + Assets = Liabilities + Capital + Capital Revenue - Expenses = Income Stock dividend declared and distributed. {#1} {#2} {#3} {#4} {#5} {#6} {#7} {#8} b. Assume that the company splits its stock two shares for one share and reduces the par value from $10 to $5 rather than declaring a 100% stock dividend. How does the accounting for the stock split differ from the accounting for the 100% stock dividend? {#9}
Anаlyzing аnd Interpreting Stоckhоlders’ Equity аnd EPS (FSET) Fоllowing is the stockholders’ equity section of the balance sheet for The Procter & Gamble Company along with selected earnings and dividend data. For simplicity, balances for noncontrolling interests have been left out of income and shareholders’ equity information. ($ millions except per share amounts) 2020 2019 Net earnings attributable to Procter & Gamble shareholders $13,027 $3,897 Common dividends 7,551 7,256 Preferred dividends 263 263 Basic net earnings per common share $5.13 $1.45 Diluted net earnings per common share $4.96 $1.43 Shareholders’ equity: Convertible class A preferred stock, stated value $1 per share (600 shares authorized) $897 $928 Nonvoting class B preferred stock, stated value $1 per share (200 shares authorized) — — Common stock, stated value $1 per share (10,000 shares authorized) shares issued: 4,009.2 4,009.2 Additional paid-in capital 64,194 63,827 Reserve for ESOP debt retirement (1,080) (1,146) Accumulated other comprehensive income (loss) (16,165) (14,936) Treasury stock, at cost (1) (105,573) (100,406) Retained earnings 100,239 94,918 Shareholders’ equity attributable to Procter & Gamble shareholders $46,521 $47,194 a. Compute the number of shares outstanding (in millions) at the end of each fiscal year. Estimate the average number of shares outstanding (in millions) during 2020. How do these two computations compare? ● Note: Enter the answer rounded to one digit after the decimal; for example, enter 1.4 for 1.44 or 1.5 for 1.45. Shares outstanding at the end of 2020: {#1}million Shares outstanding at the end of 2019: {#2}million Estimated average shares outstanding during 2020: {#3}million Estimated average shares outstanding are {#4} shares outstanding at year-end 2020 due to {#5} treasury shares at the end of 2020 compared to the end of 2019. b. Calculate the average cost per share of the shares held as treasury stock at the end of each fiscal year. ● Note: Enter the answer rounded to two digits after the decimal; for example, enter 1.42 for 1.424, or 1.43 for 1.425. 2020: ${#6} 2019: ${#7} c. In 2020, preferred shareholders elected to convert 3.74 million shares of preferred stock ( $31 million book value) into common stock. Rather than issue new shares, the company granted to the preferred shareholders 3.74 million common shares held in treasury stock with a total cost of $26 million. Prepare the entry to illustrate how this transaction would have been recorded using the financial statement effects template. NOTE: Use negative signs with your answers, when appropriate. NOTE: Select "N/A" as your answer if a part of the accounting equation is not affected. NOTE: Enter amounts in millions. Balance Sheet Income Statement Cash Noncash Contributed Earned Contra Net Transaction Asset + Assets = Liabilities + Capital + Capital - Equity Revenue - Expenses = Income Conversion of preferred stock to common stock. {#8} {#9} {#10} {#11} {#12} {#13} {#14} Preferred stock {#15} {#16} {#17} {#18} {#19} d. P&G has no convertible debt outstanding. What could explain the reported diluted EPS? {#20} e. Calculate P&G’s return on common equity (ROCE) for fiscal 2020. ● Note: Round answers to the nearest whole dollar. Numerator / Denominator = ROCE {#21} / {#22} =
Cоmputing Bаsic аnd Diluted Eаrnings per Share During the year, Park Cоrpоration had 75,000 shares of $10 par value common stock and 15,000 shares of 8%, $50 par value convertible preferred stock outstanding. Each share of preferred stock may be converted into three shares of common stock. Park Corporation’s net income was $702,000 for the year. Required a. Compute the basic earnings per share for the year. (Round answer to two decimal places.) ${#1} b. Compute the diluted earnings per share for the year. (Round answer to two decimal places.) ${#2}