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Munoz Company's income statement information follows: Net sales Income before interest and taxes Net income after taxes Interest expense Stockholders' equity, December 31 (Year 1: $191,000) Common stock, December 31 Year 3 $ 423,000 111,000 55,480 9,450 309,000 195,000 The average number of shares outstanding was 7,800 for Year 3 and 6,900 for Year 2. Required Compute the following ratios for Munoz for Year 3 and Year 2. a. Times Interest Earned. Note: Round your answer to 2 decimal places. b. Earnings per share based on the average number of common shares outstanding. Note: Round your answer to 2 decimal places. c. Price-earnings ratio (market prices: Year 3, $65 per share; Year 2, $74 per share). Note: Round your answer to 2 decimal places. Year 2 $ 260,000 84,000 63,500 7,400 234,000 172,500

Munoz Company's income statement information follows: Net sales Income before interest and taxes Net income after taxes Interest expense Stockholders' equity, December 31 (Year 1: $191,000) Common stock, December 31 Year 3 $ 423,000 111,000 55,480 9,450 309,000 195,000 The average number of shares outstanding was 7,800 for Year 3 and 6,900 for Year 2. Required Compute the following ratios for Munoz for Year 3 and Year 2. a. Times Interest Earned. Note: Round your answer to 2 decimal places. b. Earnings per share based on the average number of common shares outstanding. Note: Round your answer to 2 decimal places. c. Price-earnings ratio (market prices: Year 3, $65 per share; Year 2, $74 per share). Note: Round your answer to 2 decimal places. Year 2 $ 260,000 84,000 63,500 7,400 234,000 172,500

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Munoz Company's income statement information follows: Net sales Income before interest and taxes Net income after taxes Interest expense Stockholders' equity, December 31 (Year 1: $191,000) Common stock, December 31 Year 3 $ 423,000 111,000 55,480 9,450 Required Compute the following ratios for Munoz for Year 3 and Year 2. 309,000 195,000 The average number of shares outstanding was 7,800 for Year 3 and 6,900 for Year 2. a. Times Interest Earned. Note: Round your answer to 2 decimal places. b. Earnings per share based on the average number of common shares outstanding. Note: Round your answer to 2 decimal places. c. Price-earnings ratio (market prices: Year 3, $65 per share; Year 2, $74 per share). Note: Round your answer to 2 decimal places. Year 2 $ 260,000 84,000 63,500 7,400 234,000 172,500 d. Return on average common stockholders' equity. Note: Round your percentage answer to 2 decimal places (for example, 0.2345 should be entered as 23.45). e. Net margin on sales. Note: Round your percentage answer to 2 decimal places (for example, 0.2345 should be entered as 23.45).
Transcribed Image Text:Munoz Company's income statement information follows: Net sales Income before interest and taxes Net income after taxes Interest expense Stockholders' equity, December 31 (Year 1: $191,000) Common stock, December 31 Year 3 $ 423,000 111,000 55,480 9,450 Required Compute the following ratios for Munoz for Year 3 and Year 2. 309,000 195,000 The average number of shares outstanding was 7,800 for Year 3 and 6,900 for Year 2. a. Times Interest Earned. Note: Round your answer to 2 decimal places. b. Earnings per share based on the average number of common shares outstanding. Note: Round your answer to 2 decimal places. c. Price-earnings ratio (market prices: Year 3, $65 per share; Year 2, $74 per share). Note: Round your answer to 2 decimal places. Year 2 $ 260,000 84,000 63,500 7,400 234,000 172,500 d. Return on average common stockholders' equity. Note: Round your percentage answer to 2 decimal places (for example, 0.2345 should be entered as 23.45). e. Net margin on sales. Note: Round your percentage answer to 2 decimal places (for example, 0.2345 should be entered as 23.45).
Note: Round your percentage answer to 2 decimal places (for example, 0.2345 should be entered as 23.45). a. Times interest earned b. Earnings per share c. Price-earnings ratio d. Return on average equity e. Net margin Year 3 times times % % Year 2 times times % %
Transcribed Image Text:Note: Round your percentage answer to 2 decimal places (for example, 0.2345 should be entered as 23.45). a. Times interest earned b. Earnings per share c. Price-earnings ratio d. Return on average equity e. Net margin Year 3 times times % % Year 2 times times % %
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