The Slazenger Company Has Provided the Following Information

question 85

Essay

The Slazenger Company has provided the following information:
• Shareholders' equity on January 1,2015 was $2,225,900.
• Shareholders' equity on December 31,2015 was $2,379,300.
• Treasury stock costing $71,000 was sold for $62,000;the treasury stock was acquired during 2014.
• A property dividend was declared and distributed during 2015.The property's book value was $42,325 on the declaration date;the property's market value was $54,485 on the declaration date and $57,500 on the distribution date.
• 10,000 shares of $20 par value preferred stock was purchased and retired during 2015.The shares were initially issued for $25 per share and were purchased for $29 per share.
• 5,000 shares of $5 par value common stock were issued as the result of a small stock dividend.The market value per share was $9 at the declaration date and $9.50 at the distribution date.
• Cash dividends declared and paid during the year totaled $70,000.
What was Slazenger's 2015 net income assuming that the only other transactions impacting shareholders' equity are described above?

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Definitions:

Split-Off Point

That point in the manufacturing process where some or all of the joint products can be recognized as individual products.

Joint Products

Two or more products that are produced from a common input.

Manufacturing Process

A sequence of operations that transforms raw materials into finished products, involving both human labor and machinery.

Production Constraint

A limitation or restriction in the production process, such as limited resources or capacity, that affects output.