Financial And Managerial Accounting
15th Edition
ISBN: 9781337902663
Author: WARREN, Carl S.
Publisher: Cengage Learning,
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Textbook Question
Chapter 12, Problem 3MAD
Analyze Pacific Gas and Electric Company
Pacific Gas and Electric Company (PCG) is a large gas and electric utility operating in northern and central California. Three recent years of financial data for Pacific Gas and Electric are as follows (in millions):
- a. Determine the earnings per share for Years 1–3. Round to the nearest cent.
- b. Interpret the trend in earnings per share using horizontal analysis for the three years in terms of the change in earnings and average shares outstanding.
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Pacific Gas and Electric Company is a large gas and electric utility operating in northern and central California. Three recent years of financial data for Pacific Gas and Electric Company are as follows:
Fiscal Years Ended
Year 3
Year 2
Year 1
Net income
$880
$1,470
$810
Preferred dividends
$16
$16
$16
Average number of common shares outstanding
484
468
444
b. Evaluate the growth in earnings per share for the three years in comparison to the growth in net income for the three years. Round your answers to the nearest whole percentage. Negative amount should be indicated by the minus sign.
Earnings per share growth as a percent of Year 1 (base year)
Year 3
fill in the blank 4%
Year 2
fill in the blank 5%
Year 1 Earnings
fill in the blank 6%
Net income growth as a percent of Year 1 (base year)
Year 3
fill in the blank 7%
Year 2
fill in the blank 8%
Year 1 Earnings
fill in the…
Pacific Gas and Electric Company is a large gas and electric utility operating in northern and central California. Three recent years of financial data for Pacific Gas and Electric Company are as follows:
Fiscal Years Ended
Year 3
Year 2
Year 1
Net income
$880
$1,470
$810
Preferred dividends
$16
$16
$16
Average number of common shares outstanding
484
468
444
a. Determine the earnings per share for fiscal Year 3, Year 2, and Year 1. Round to two decimal places.
Year 3 Earnings
$fill in the blank 1 per share
Year 2 Earnings
$fill in the blank 2 per share
Year 1 Earnings
$fill in the blank 3 per share
b. Evaluate the growth in earnings per share for the three years in comparison to the growth in net income for the three years. Round your answers to the nearest whole percentage. Negative amount should be indicated by the minus sign.
Earnings per share growth as a percent of Year 1 (base…
Six measures of solvency or profitabilityThe following data were taken from the financial statements of GatesInc. for the current fiscal year.
Assuming that long-term investments totaled $3,000,000 throughout theyear and that total assets were $7,000,000 at the beginning of the currentfiscal year, determine the following: (A) ratio of fixed assets to long-termliabilities, (B) ratio of liabilities to stockholders' equity, (C) assetturnover, (D) return on total assets, (E) return on stockholders" equity,and (F) return on common stockholders' equity. (Round ratios andpercentages to one decimal place as appropriate.)
Chapter 12 Solutions
Financial And Managerial Accounting
Ch. 12 - Of two corporations organized at approximately the...Ch. 12 - A stockbroker advises a client to buy preferred...Ch. 12 - A corporation with both preferred stock and common...Ch. 12 - Prob. 4DQCh. 12 - Prob. 5DQCh. 12 - Prob. 6DQCh. 12 - A corporation reacquires 60,000 shares of its own...Ch. 12 - Prob. 8DQCh. 12 - Prob. 9DQCh. 12 - Prob. 10DQ
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