Consider the Following Information from the Financial Statements of Prosser-Phelps

question 99

Essay

Consider the following information from the financial statements of Prosser-Phelps, Inc.:
$\begin{array}{lll}&2012&2011\\\text { Total stockholders equity } & \$ 59,050 & \$ 55,900 \\\text { Net income } & 22,000 \\\text { Market price per share } & 120 \\\text { Dividends } & 611 \\\text { Purchasess of treasury stock } & 9,000 \\\text { Average shares outstanding } & 550 \\\text { Dividends per share } & 1.11\end{array}$ Calculate Prosser-Phelps' dividend yield and dividend payout.

Understand the legal aspects and life span of patents and copyrights and their impact on financial statements.

Practice the computation of financial ratios related to asset management, including asset turnover.

Analyze the effects of changes in asset estimates and asset exchanges on financial statements.

Explore the reporting of goodwill and its implications in business combinations.

---

Definitions:

Intellectual Potential

The capacity or ability of an individual to think, reason, and understand at a high level, typically seen as a measure of future intellectual development or achievement.

Heredity

The inheritance of physical or mental qualities through genes from ancestors to descendants.

Flynn Effect

The observed rise over time in standardized intelligence test scores, theorized to be caused by various factors such as improved nutrition and education.

IQ Tests

Set exams designed to quantify cognitive skills and the intelligence of individuals.