FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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I need help to determine the following;
6. For P & B Manufacturing to assess its market performance, I need help to calculate the earnings per share AND the dividend payout ratio (the par value of the company’s common stock is $10 per share). Include calculations and round answers to 2 decimal places.
Transcribed Image Text:Current assets:
Cash and cash equivalents
Accounts Receivable
Inventory
Total current assets
Property, plant and equipment
Less accumulated depreciation
Net property, plant and equipment
Total assets
Current liabilities:
Accounts payable
Accrued liabilities
Income taxes payable
Total current liabilities
P & B Manufacturing
Comparative Balance Sheet
(dollars in millions)
Bonds payable
Total liabilities
Stockholders' equity:
Common stock
Retained earnings
Assets
Ending Balance
Liabilities and Stockholders' Equity
Total stockholders' equity
Total liabilities and stockholders' equity
65
530
600
1,195
1,719
640
1,079
2,274
180
94
72
346
180
526
800
948
1,748
2,274
Beginning Balance
91
572
580
1,243
1,656
480
1,176
2,419
180
105
88
373
310
683
800
936
1,736
2,419
P & B Manufacturing
Income Statement
For Year Ended December 31
(dollars in millions)
Sales
Cost of goods sold
Gross Margin
Selling and administrative expenses
Net operating income
Nonoperating items: Gain on sale of equipment
Income before taxes
Income taxes
Net Income
4,450
3,550
900
820
80
4
84
29
55
P & B Manufacturing also provided the following information:
1 The company sold equipment that had an original cost of $15 million and
accumulated depreciation of $9 million. The cash proceeds from the sale were
$11 million. The gain on the sale was $4 million.
2
The company did not issue any new bonds during the year
3
The company paid a cash dividend during the year
4 The company did not complete any common stock transactions during the
year
Transcribed Image Text:6a
6b
To assess market performance, calculate Earnings Per Share and Dividend Payout Ratio. Assume the par value of the
company's common stock is $10 per share Round your calculations & answers to 2 decimal places
Calculate Earnings per share. Express in dollars and cents
Calculate Dividend payout ratio - express in a percent. Assume the par value of the company's
common stock is $10 per share
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