Problem 4 EINANCIAL RATIOS. The Format Company reports the following balance sheet data: Current liabilities $280.000 Bonds payable, 16% $120,000 Preferred stock, 14%, $100 par value S200,000 Common stock $25 par value, 16.800 shares $420,000 Paid-in capital on common stock $240,000 Retained earnings S180.000 Income before taxes is $160,000. The tax rate is 40 percent. Common stockholders' equity in the previous year was $800,000. The market price per share of common stock is $35. Requirement: Calculate the following: a. Net income; b. Preferred dividends; c. Return on common stock;
Problem 4 EINANCIAL RATIOS. The Format Company reports the following balance sheet data: Current liabilities $280.000 Bonds payable, 16% $120,000 Preferred stock, 14%, $100 par value S200,000 Common stock $25 par value, 16.800 shares $420,000 Paid-in capital on common stock $240,000 Retained earnings S180.000 Income before taxes is $160,000. The tax rate is 40 percent. Common stockholders' equity in the previous year was $800,000. The market price per share of common stock is $35. Requirement: Calculate the following: a. Net income; b. Preferred dividends; c. Return on common stock;
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter15: Financial Statement Analysis
Section: Chapter Questions
Problem 55E: Rebert Inc. showed the following balances for last year: Reberts net income for last year was...
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Transcribed Image Text:Problem 4
EINANCIAL RATIOS. The Format Company reports the following balance sheet data:
Current liabilities
$280.000
Bonds payable, 16%
$120,000
Preferred stock, 14%, $100 par value $200,000
Common stock $25 par value, 16.800 shares $420.000
Paid-in capital on common stock
$240,000
re
Retained earnings
$180,000
Income before taxes is $160,000. The tax rate is 40 percent. Common stockholders'
equity in the previous year was $800,000. The market price per share of common stock
is $35.
Requirement:
Calculate the following:
a. Net income%3B
b. Preferred dividends;
c. Return on common stock;
d. Times interest earned;
e. Earnings per share;
f. Price/earnings ratio; and
g. Book value per share.
data relative to
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