FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
expand_more
expand_more
format_list_bulleted
Question
Five Measures of Solvency or Profitability
The
Bonds payable, 8% | $2,000,000 |
$305,000 | |
Common stock, $12 par | $226,920.00 |
Income before income tax was $592,000, and income taxes were $88,750 for the current year. Cash dividends paid on common stock during the current year totaled $141,825. The common stock was selling for $300 per share at the end of the year.
Determine each of the following. Round answers to one decimal place, except for dollar amounts which should be rounded to the nearest whole cent. Use the rounded answers for subsequent requirements, if required.
a. Times interest earned ratio | fill in the blank 1 | times |
b. Earnings per share on common stock | $fill in the blank 2 | |
c. Price-earnings ratio | fill in the blank 3 | |
d. Dividends per share of common stock | $fill in the blank 4 | |
e. Dividend yield | fill in the blank 5 | % |
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution
Trending nowThis is a popular solution!
Step by stepSolved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Similar questions
- Earnings per Share, Price-Earnings Ratio, Dividend Yield The following information was taken from the financial statements of Tolbert Inc. for December 31 of the current fiscal year: Common stock, $40 par value (no change during the year) $11,600,000 Preferred $5 stock, $100 par (no change during the year) 4,000,000 The net income was $954,000 and the declared dividends on the common stock were $72,500 for the current year. The market price of the common stock is $18.20 per share. For the common stock, determine (a) the earnings per share, (b) the price-earnings ratio, (c) the dividends per share, and (d) the dividend yield. If required, round your answers to two decimal places. a. Earnings per Share $fill in the blank 1 b. Price-Earnings Ratio fill in the blank 2 c. Dividends per Share $fill in the blank 3 d. Dividend Yield fill in the blank 4 %arrow_forwardJet Company's summarized financial statement information for the beginning of the year is as follows: Marketable Securities $50,000 All Other Assets $150,000 Total Liabilities $80,000 Total Stockholders' Equity $120,000 During the year, Jet had Revenue of $82,000, Expenses of $54,000 and paid cash dividends of $9,000. Marketable Securities increased in value by 12% , liabilities remained unchanged for the year and Jet had 15,000 shares outstanding all year. Calculate the information that Jet would report on its financial statements at the end of the year. X Answer is complete but not entirely correct. A B D E Net 2. Income= Total Assets= 28,000 $ 197,000 4 Total Liabilities= Total Equity= $ 80,000 117,000 7 EPS= 1.13 X 8. 10 5. 6.arrow_forwardRatio the liabilities to stockholders equity and times interest earned. following data were taken from the financial statement of Hunter Inc.for December 31st of two recent years: Current year accounts payable $434,000. Current maturity. 290,000 Serial bonds payable, 10% 1,190,000 Common stock,$1 par value 70,000 Paid- in capital in excess of par 700,000 Retained earnings 2,420,000 Previous year $127,000 290,000 1,480,000 90,000 700,000 1,920,000 The income before income tax expense was $518,000 and $453,000 for the camera in previous years respectively. A. Determine the ratio of liabilities to stockholders Equity at the end of each year. Round to one decimal place. Current year Previous year B. Determine the times interest earned ratio for both years. Round to one decimal place. Current year Previous year C. The ratio of liabilities to stockholders Equity has _______and the number of times bond interest charges were earned has_______ from…arrow_forward
- Balance sheet and income statement data indicate the following: Bonds payable, 10% (due in two years) $937,000 Preferred 5% stock, $100 par (no change during year) 243,000 Common stock, $50 par (no change during year) 1,770,000 Income before income tax for year 359,000 Income tax for year 70,000 Common dividends paid 88,500 Preferred dividends paid 12,150 Based on the data presented, what is the times interest earned ratio (rounded to one decimal place)?arrow_forwardhow do I find the profarrow_forwardFive Measures of Solvency or Profitability The balance sheet for Quigg Inc. at the end of the current fiscal year indicated the following: Bonds payable, 9% $1,800,000 364,000 Preferred $5 stock, $50 par Common stock, $6 par 1,583,400 Income before income tax expense was $664,200, and income taxes were $100,000 for the current year. Cash dividends paid on common stock during the current year totaled $92,365. The common stock was selling for $14 per share at the end of the year. Determine each of the following. Round answers to one decimal place, except for dollar amounts which should be rounded to the nearest whole cent. Use the rounded answers for subsequent requirements, if required. a. Times interest earned ratio times b. Earnings per share on common stock c. Price-earnings ratio d. Dividends per share of common stock e. Dividend yield 00000 %arrow_forward
- Balance sheet and income statement data indicate the following: Bonds payable, 10% (due in two years) $878,000 Preferred 5% stock, $100 par (no change during year) 247,000 Common stock, $50 par (no change during year) 2,192,000 Income before income tax for year 322,000 Income tax for year 80,000 Common dividends paid 109,600 Preferred dividends paid 12,350 Based on the data presented, what is the times interest earned ratio (rounded to one decimal place)? a.3.7 b.4.7 c.2.7 d.6.3arrow_forwardFive Measures of Solvency or Profitability The balance sheet for Garcon Inc. at the end of the current fiscal year indicated the following: Bonds payable, 10% $1,400,000 Preferred $10 stock, $100 par 165,000 Common stock, $12 par 1,831,500.00 Income before income tax was $378,000, and income taxes were $56,250 for the current year. Cash dividends paid on common stock during the current year totaled $45,788. The common stock was selling for $20 per share at the end of the year. Determine each of the following. Round answers to one decimal place, except for dollar amounts which should be rounded to the nearest whole cent. Use the rounded answers for subsequent requirements, if required. a. Times interest earned ratio times b. Earnings per share on common stock $ c. Price-earnings ratio d. Dividends per share of common stock $ e. Dividend yield %arrow_forward2arrow_forward
- Measures of liquidity, solvency, and profitabilityThe comparative financial statements of Marshall Inc. are as follows. The market price of Marshall common stock was $82.60 on December 31, 20Y2. InstructionsDetermine the following measures for 20Y2 (round to one decimal place, including percentages, except for per-share amounts):1. Working capital2. Current ratio3. Quick ratio4. Accounts receivable turnover5. Number of days' sales in receivables6. Inventory turnover7. Number of days' sales in inventory8. Ratio of fixed assets to long-term liabilities9. Ratio of liabilities to stockholders' equity10. Times interest earned11. Asset turnover12. Return on total assets13. Return on stockholders' equity14. Return on common stockholders' equity15. Earnings per share on common stock16. Price-earnings ratio17. Dividends per share of common stock18. Dividend yieldarrow_forwardFive Measures of Solvency or Profitability The balance sheet for Bearing Industries Inc. at the end of the current fiscal year indicated the following: Bonds payable, 7% $1,400,000 320,000 Preferred $5 stock, $100 par Common stock, $12 par 600,000 Income before income tax was $254,800, and income taxes were $38,800, for the current year. Cash dividends paid on common stock during the current year totaled $30,000. The common stock was selling for $40 per share at the end of the year. Determine each of the following. Round answers to one decimal place, except for dollar amounts which should be rounded to the nearest whole cent. Use the rounded answers for subsequent requirements, if required. a. Times interest earned ratio b. Earnings per share on common stock c. Price-earnings ratio d. Dividends per share of common stock e. Dividend yield $ $ times %arrow_forwardWD Corporation reports the following year-end balance sheet data. The company's debt-to-equity ratio equals: Cash $ 42,000 Current liabilities $ 77,000 Accounts receivable 57,000 Long-term liabilities 28,000 Inventory 62,000 Common stock 102,000 Equipment 147,000 Retained earnings 101,000 Total assets $ 308,000 Total liabilities and equity $ 308,000arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
- AccountingAccountingISBN:9781337272094Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.Publisher:Cengage Learning,Accounting Information SystemsAccountingISBN:9781337619202Author:Hall, James A.Publisher:Cengage Learning,
- Horngren's Cost Accounting: A Managerial Emphasis...AccountingISBN:9780134475585Author:Srikant M. Datar, Madhav V. RajanPublisher:PEARSONIntermediate AccountingAccountingISBN:9781259722660Author:J. David Spiceland, Mark W. Nelson, Wayne M ThomasPublisher:McGraw-Hill EducationFinancial and Managerial AccountingAccountingISBN:9781259726705Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting PrinciplesPublisher:McGraw-Hill Education
Accounting
Accounting
ISBN:9781337272094
Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:Cengage Learning,
Accounting Information Systems
Accounting
ISBN:9781337619202
Author:Hall, James A.
Publisher:Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis...
Accounting
ISBN:9780134475585
Author:Srikant M. Datar, Madhav V. Rajan
Publisher:PEARSON
Intermediate Accounting
Accounting
ISBN:9781259722660
Author:J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:9781259726705
Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:McGraw-Hill Education