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a corporation has a beginning retained earnings balance of 100000. During the year, the company has a revenue of $200,000, expenses of $160,000, and pays dividends of $10,000. What is the ending retained earnings balance?

12. At the end of the year, dividends are closed to what account? (1.25 Point) 13. A corporation has a beginning retained earnings balance of $100,000. During the year, the company has revenue of $200,000, expenses of $160,000, and pays dividends of $10,000. What is the ending retained earnings balance? (3.25 Points) 14. Given the following information, calculate earnings per (common) share, rounding to two decimals: (3 Points) Net Income Preferred Dividends Average # of Common Shares Outstanding $ $ 143,000 11,000 12,000 Earnings per Share 15. A corporation is considering the following financing plans: Plan 1 Issue 5% bonds (at face value) Issue preferred 7% stock, $20 par Issue common stock, $10 par 350,000 $ Plan 2 105,000 $ Plan 3 70,000 70,000 210,000 245,000 The estimated tax rate is 20%. Determine the earnings per share (rounded to two decimals) of common stock for each plan assuming income before bond interest and income tax is $140,000. (8.25 Points) Plan 1 Plan 2 Plan 3 Earnings before interest and tax Interest on bonds Income before Tax Income Tax Net Income Dividends on preferred stock Available for dividends on commons stock Shares of Common Stock Outstanding Earnings per Share Page 11 af 12

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