Hayes Enterprises began 2015 with a retained earnings balance of $928,000

P3-10 Hayes Enterprises began 2015 with a retained earnings balance of $928,000. During 2015, the firm earned $377,000 after taxes. From this amount, preferred stockholders were paid $47,000 in dividends. At year-end 2015, the firm’s retained earnings totaled $1,048,000. The firm had 140,000 shares of common stock outstanding during 2015.

a. Prepare a statement of retained earnings for the year ended December 31, 2015, for Hayes Enterprises. (Note: Be sure to calculate and include the amount of cash dividends paid in 2015.)

b. Calculate the firm’s 2015 earnings per share (EPS).
c. How large a per-share cash dividend did the firm pay on common stock during 2015?

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a.	Cash dividends paid on common stock = Net profits after taxes – preferred dividends – change in retained earnings
	= $377,000 – $47,000 – (1,048,000 – $928,000)

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