Dren
12-05-2006, 04:42 PM
Need help doing the partial balance sheets Dec.31,02 and Dec.31 03. and Jan.1st 05. and to do the EPS(Earnings per share) on Dec. 31.04
If any can help out with this would be great.
Willing to Throw in $$$.
This is the problem:
Arctic Pipelines Ltd was incorporated in the year 2000 by issuing 4,000,000, no par-value, common shares, of its unlimited authorized common shares, at $0.75 per share. Until the year 2002, the company had been operating very well with no need for any additional capital.
In order to expand its operations and take advantage of the opportunities in the future, the board of directors approved the construction of an oil pipeline from Alaska to Alberta. This announcement was made by the board of directors at the company’s 2001 Annual General Meeting, held in Calgary at Mount Royal College. The Canadian and U.S. financial markets reacted very favourably to this announcement.
To finance the construction of this pipeline, Arctic Pipelines Ltd issued 1,500,000 additional no par-value, common shares $2 per share on January 1, 2002. The company also raised additional capital by issuing 500,000, 5 year bonds with a face value of $5,000,000. The bond contract stipulated an interest rate of 8% per year with interest to be paid every June 30 and December 31.
Although the market rate of interest at the time the bonds were issued was 10%, the bonds were fully issued on January 1, 2002.
Due to rising construction costs, the board of directors identified the need to raise a minimum of $4,000,000 additional capital. On April 1, 2003, this capital requirement was satisfied by issuing 200,000, 6 year, redeemable bonds (redeemable at 109). The bond contract called for interest to be paid at 6% per year, twice a year, every September 30 and March 31. The market value of the interest at the time these bonds were issued was 4%.
Based on the present economic conditions and forecasts, the board of directors feels confident that interest rates will be hovering around the 1.5% to 2% range for the next few years. One very respected board member (an ex student of Mount Royal College) expressed total concurrence to these forecasted rates and said, “In order for the company to remain a leader in the industry, and continue to remain successful, it is imperative for management to start planning immediately for the future which will be surrounded by long periods of low interest rates”.
In early 2004, oil prices reached an all time high. Analysts predicted oil prices to climb steadily all through 2004. The equity markets recovered substantially from the two previous years of gloom and doom. Arctic Pipelines Ltd. reported 2004 net earning of $5,200,000, an increase of over 80% from the previous years.
Some of the following transactions that took place in the year 2004 and 2005 are shown below:
March 31, 2004: 500,000 no-par value, common shares were issued at $3 per share
October 1, 2004: 100,000 no-par value common shares were issued at $3.20 per share.
January 1, 2005: Arctic redeemed 30% of the redeemable bonds it issued on April 1, 2003
If any can help out with this would be great.
Willing to Throw in $$$.
This is the problem:
Arctic Pipelines Ltd was incorporated in the year 2000 by issuing 4,000,000, no par-value, common shares, of its unlimited authorized common shares, at $0.75 per share. Until the year 2002, the company had been operating very well with no need for any additional capital.
In order to expand its operations and take advantage of the opportunities in the future, the board of directors approved the construction of an oil pipeline from Alaska to Alberta. This announcement was made by the board of directors at the company’s 2001 Annual General Meeting, held in Calgary at Mount Royal College. The Canadian and U.S. financial markets reacted very favourably to this announcement.
To finance the construction of this pipeline, Arctic Pipelines Ltd issued 1,500,000 additional no par-value, common shares $2 per share on January 1, 2002. The company also raised additional capital by issuing 500,000, 5 year bonds with a face value of $5,000,000. The bond contract stipulated an interest rate of 8% per year with interest to be paid every June 30 and December 31.
Although the market rate of interest at the time the bonds were issued was 10%, the bonds were fully issued on January 1, 2002.
Due to rising construction costs, the board of directors identified the need to raise a minimum of $4,000,000 additional capital. On April 1, 2003, this capital requirement was satisfied by issuing 200,000, 6 year, redeemable bonds (redeemable at 109). The bond contract called for interest to be paid at 6% per year, twice a year, every September 30 and March 31. The market value of the interest at the time these bonds were issued was 4%.
Based on the present economic conditions and forecasts, the board of directors feels confident that interest rates will be hovering around the 1.5% to 2% range for the next few years. One very respected board member (an ex student of Mount Royal College) expressed total concurrence to these forecasted rates and said, “In order for the company to remain a leader in the industry, and continue to remain successful, it is imperative for management to start planning immediately for the future which will be surrounded by long periods of low interest rates”.
In early 2004, oil prices reached an all time high. Analysts predicted oil prices to climb steadily all through 2004. The equity markets recovered substantially from the two previous years of gloom and doom. Arctic Pipelines Ltd. reported 2004 net earning of $5,200,000, an increase of over 80% from the previous years.
Some of the following transactions that took place in the year 2004 and 2005 are shown below:
March 31, 2004: 500,000 no-par value, common shares were issued at $3 per share
October 1, 2004: 100,000 no-par value common shares were issued at $3.20 per share.
January 1, 2005: Arctic redeemed 30% of the redeemable bonds it issued on April 1, 2003