Presented Below Are Selected Data from the Financial Statements of Wizard

question 184

Multiple Choice

Presented below are selected data from the financial statements of Wizard Corp. $$\begin{array} { l r r } & \underline { \mathbf { 2 0 1 8 } } & \underline { \mathbf { 2 0 1 7 } } \\\text { Net income } & \$ 150,000 & \$ 120,000 \\\text { Cash dividends paid on preferred stock } & \$ 15,000 & \$ 15,000 \\\text { Cash dividends paid on common stock } & \$ 42,000 & \$ 38,000 \\\text { Weighted average number of preferred shares outstanding } & 20,000 & 20,000 \\\text { Weighted average number of common shares outstanding } & 105,000 & 95,000\end{array}$$ Earnings per share is reported on the 2018 income statement as

• A)$1.08.
• B)$1.20.
• C)$1.29.
• D)$1.43.

Understand and apply the principles of tax calculation for different income levels and categories.

Calculate and analyze net working capital changes over a period.

Determine the total tax paid by individuals based on interest income and dividends combining provincial tax rates.

Calculate operating cash flow and cash flow to creditors and stockholders.

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Definitions:

Market Value

The estimated amount for which an asset or liability should exchange on the valuation date between a willing buyer and a willing seller in an arm's length transaction.

Sales Tax

A tax imposed by government authorities on the sale of goods and services, paid for by the consumer at the point of purchase.

Sales Tax

A tax levied by a government on the sale of goods and services, usually calculated as a percentage of the purchase price.

Sales Tax

A government-imposed tax on the sale of goods and services, collected by retailers at the point of sale.