15 The following information pertains to Diane Company. Assume that all balance sheet amounts represent...
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Accounting
15
The following information pertains to Diane Company. Assume that all balance sheet amounts represent both average and ending balance figures and that all sales were on credit. Use this information to answer the question that follow.
Assets
Cash and short-term investments
$ 30,000
Accounts receivable (net)
20,000
Inventory
15,000
Property, plant, and equipment
185,000
Total assets
$250,000
Liabilities and Stockholders' Equity
Current liabilities
$ 45,000
Long-term liabilities
70,000
Stockholders' equityCommon
135,000
Total liabilities and stockholders' equity
$250,000
Income Statement
Sales
$85,000
Cost of goods sold
45,000
Gross margin
$40,000
Operating expenses
(15,000)
Interest expenses
(5,000)
Net income
$20,000
Number of shares of common stock outstanding
6,000
Market price of common stock
$20
Total dividends paid
$9,000
Cash provided by operations
$30,000
Using the data provided for Diane Company, what are the dividends per common share?
a. $0.67
b. $20.00
c. $3.00
d. $1.50
Answer & Explanation
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