ACC 291 Week 4 Individual Assignment

Teresa Watkins
ACC 291
January 17, 2014
Micael !luvas
"11#1$
A%ter A%ter
!e%&re 't&ck 't&ck
Acti&n (ividend ')lit
Stockholders equity
Paid-in capital
Common stock 600000
6,300,0
00
600000
In excess of par alue 0 !",000 0
#otal paid-in capital 600,000 6,3!",000 600,000
$etained earnin%s &00,000 '(',000 &00,000
#otal stockholders equity *1,$00,000 *1,$00,000 *1,$00,000

)utstandin% shares +0000 +,000 120000

*ook alue per share *2$-00 *2,-.1 *12-$0
"12#1
1
Companies purchase inestments in de+t or stock securities +ecause they hae excess cash,
to %enerate earnin%s from inestment income, or for strate%ic reasons,

2
- corporation .ould hae excess cash that it does not need for operations due to seasonal
fluctuations in sales and as a result of economic cycles,

,
#he typical inestment .hen inestin% cash for short periods of time is lo.-risk, hi%h
liquidity, short-term securities such as %oernment-issued securities,

4
#he typical inestments .hen inestin% cash to %enerate earnin%s are de+t securities and
stock securities,

$
- company .ould inest in securities that proide no current cash flo.s for speculatie
reasons, #hey are speculatin% that the inestment .ill increase in alue,

+
#he typical inestments .hen inestin% cash for strate%ic reasons are stocks of companies
in a related industry or in an unrelated industry that the company .ishes to enter,
"12#
2
a/
/an, ! 0e+t Inestments

(0,&0
0
Cash 12(0000 3 2&004 (0,&00

!-/ul Cash 1(0000 5 '6 5 !7"4 "000
Interest $eenue "000

!-/ul
Cash 138000 9 (004

33,(0
0
0e+t Inestments 1(0&00: 37(4 30,(80
;ain on Sale of 0e+t Inestments 133(00-30(804 "&60
0/
0ec,
3!
Interest $eceia+le

'00

Interest $eenue 1"0000:'6:!7"4 '00
1r&0lem 111#+A
111#
+A
a/
!4 <and


"&6,000

Preferred Stock 1",800 5
2!004

"80,000

Paid-in Capital in =xcess of Par >alue- preferred stock


(6,000

"4 Cash 1"000,000 3 (?00,0004


?,?00,000

Common Stock 1800,000 5
2(4

",000,000

Paid-in Capital in =xcess of Stated >alue- common stock


(,?00,000

34 #reasury Stock@Common 1!(00:""4


33,000

Cash


33,000

84 Cash 1(00 5 2"'4


!8,000

#reasury Stock@Common 1(00:""4


!!,000

Paid-in Capital from #reasury stock 1(00:64


3,000
0/
A2345( C42142ATI43

Stockholders
equity
Paid-in capital
Capital stock
'6 Preferred stock, 2!00
par alue, noncumulatie,
80,000 shares authoriAed,
",800 shares issued and
outstandin%

"80,0
00
Common stock, no par, 2(,00
stated alue, ",000,000
shares authoriAed, 800,000
shares issued, and 3&&,000
outstandin%

",000,0
00
#otal capital stock

","80,0
00

-dditional paid-in capital
In excess of par alue@ preferred
stock
(6,
000
In excess of stated alue@common stock
(,?00,0