Cloud CoProvided the Following Information from Its 2016 Financial Statements:
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question 109

Essay

Cloud Co.provided the following information from its 2016 financial statements:
​ $\begin{array}{lr}\text { Total Assets } & \$ 655,000 \\\text { Total Liabilities } & 225,000\end{array}$
In addition, the stockholders' equity section of the balance sheet showed:
Preferred stock, $10 \%, \$ 2$ par value, 10,000 authorized, 8,000 issued and outstanding, $\$ 5$ liquidation value $\quad \$ 16,000$
Common stock, $4 par value, 20,000 shares authorized, 10,000 issued and outstanding $\quad 40,000$

The common stock had a year-end market price of $\$ 24$ .
A) Calculate the book value per common share at year-end.
B) Indicate the usefulness of this ratio for Cloud Co.. ​

• A) Calculate the book value per common share at year-end.
• B) Indicate the usefulness of this ratio for Cloud Co.. ​

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Definitions:

Brand Knowledge

The awareness and understanding consumers have about a brand and its attributes, including its products, services, and values.

Resources

Assets that individuals or organizations possess, which can be utilized to achieve goals or complete tasks.

DATA Approach

An analytical framework focusing on Define, Analyze, Target, and Action to drive strategic decision-making based on data insights.

Potential Value

The anticipated or possible benefit, worth, or effectiveness that something might provide.