Problem 12-2A The following account balances relate to the stockholders\' equity
ID: 2582205 • Letter: P
Question
Problem 12-2A The following account balances relate to the stockholders' equity accounts of Bonita Industries at year-end 2017 2016 Common stock, 11,040 and 10,540 shares, respectively, for 2017 and 2016 Preferred stock, 4,780 shares Retained earnings $155,290 $134,490 09,940 109,940 303,150 256,320 A small stock dividend was declared and issued in 2017. The market price of the shares was $9,510. Cash dividends were $19,580 in both 2017 and 2016. The commorn stock has no par or stated value. What was the amount of net income reported by Bonita Industries in 2017? Net incomes Determine the amounts of any cash inflows or outflows related to the common stock and dividend accounts in 2017. (Show amounts that decrease cash flow with either a - sign e.g. -15,000oin parenthesis e.g. (15,00)) Cash flow related to common stock account Cash flow related to dividend account Indicate where each of the cash inflows or outflows identified in (b) would be classified on the statement of cash flows. Cash flow related to common stock account Cash flow related to dividend accountExplanation / Answer
1.the following is the calculation of net income reported by Bonita Industries in 2017.
net income reported by BOnita industries in 2017 = $75,920.
2.
3.
Difference of retained earnings ($303,150 - 256,320) $46,830 Add: stock dividend $9,510 Add: cash dividend $19,580 Net income of 2017 $75,920