Market value report
Tax reconciliation statement
Balance sheet
Income statement
Kelly ’ s Corner Bakery purchased a lot in Oil City six years ago at a cost of $ 278000 . Today , that lot has a market value of $ 264,000 . At the time of the purchase , the company spent $ 6,000 to level the lot and another $ 8,000 to install storm drains . The company now wants to build a new facility on that site . The building cost is estimated at $ 1.03 million . What amount should be used as the initial cash flow for this project ?
- $ 1,294,000
- $ 1,322,000
- $ 1,045,000
- $ 1,308,000
- $ 1,308,000
Webster United is paying a dividend of $ 1.32 per share today . There are 350,000 shares outstanding with a market price of $ 22.40 per share prior to the dividend payment . Ignore taxes . Before the dividend , the company had earnings per share of $ 1.68 . As a result of this dividend , the :
Retained earnings will decrease by $ 350,000 .