The balance sheet for Quigg Inc. at the end of the current fiscal year indicated the following: Bonds payable, 8% $1,400,000 Preferred $10 stock, $100 par 175,000 Common stock, $9 par 669,375 Income before income tax expense was $369,600,and income taxes were $54,600 for the current year. Cash dividends paid on common stock during the current year totaled $52,063. The common stock was selling for $28 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
The balance sheet for Quigg Inc. at the end of the current fiscal year indicated the following: Bonds payable, 8% $1,400,000 Preferred $10 stock, $100 par 175,000 Common stock, $9 par 669,375 Income before income tax expense was $369,600,and income taxes were $54,600 for the current year. Cash dividends paid on common stock during the current year totaled $52,063. The common stock was selling for $28 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
Financial And Managerial Accounting
15th Edition
ISBN:9781337902663
Author:WARREN, Carl S.
Publisher:WARREN, Carl S.
Chapter14: Financial Statement Analysis
Section: Chapter Questions
Problem 20E: Five measures of solvency or profitability The balance sheet for Garcon Inc. at the end of the...
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Five Measures of Solvency or Profitability
The balance sheet for Quigg Inc. at the end of the current fiscal year indicated the following:
| Bonds payable, 8% | $1,400,000 |
| 175,000 | |
| Common stock, $9 par | 669,375 |
Income before income tax expense was $369,600,and income taxes were $54,600 for the current year. Cash dividends paid on common stock during the current year totaled $52,063. The common stock was selling for $28 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 | % |
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