Use this information for Kellman Company to answer the question that follow. The balance sheets at the end of each of the first 2 years of operations indicate the following: Kellman Company Year 2 Year 1 Total current assets $621,800 $562,300 Total investments 65,900 45,600 Total property, plant, and equipment 884,500 665,500 Total current liabilities 106,300 87,000 Total long-term liabilities 290,900 238,000 Preferred 9% stock, $100 par 95,800 95,800 Common stock, $10 par 542,200 542,200 Paid-in capital in excess of par—Common stock 67,200 67,200 Retained earnings 469,800 243,200 Using the balance sheets for Kellman Company, if net income is $100,300 and interest expense is $39,400 for Year 2, and the market price of common shares is $50, what is the price-earnings ratio on common stock for Year 2? (Round intermediate calculation and final answer to two decimal places.)
Use this information for Kellman Company to answer the question that follow. The balance sheets at the end of each of the first 2 years of operations indicate the following: Kellman Company Year 2 Year 1 Total current assets $621,800 $562,300 Total investments 65,900 45,600 Total property, plant, and equipment 884,500 665,500 Total current liabilities 106,300 87,000 Total long-term liabilities 290,900 238,000 Preferred 9% stock, $100 par 95,800 95,800 Common stock, $10 par 542,200 542,200 Paid-in capital in excess of par—Common stock 67,200 67,200 Retained earnings 469,800 243,200 Using the balance sheets for Kellman Company, if net income is $100,300 and interest expense is $39,400 for Year 2, and the market price of common shares is $50, what is the price-earnings ratio on common stock for Year 2? (Round intermediate calculation and final answer to two decimal places.)
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 11BEA
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Use this information for Kellman Company to answer the question that follow.
The balance sheets at the end of each of the first 2 years of operations indicate the following:
| Kellman Company | ||
| Year 2 | Year 1 | |
| Total current assets | $621,800 | $562,300 |
| Total investments | 65,900 | 45,600 |
| Total property, plant, and equipment | 884,500 | 665,500 |
| Total current liabilities | 106,300 | 87,000 |
| Total long-term liabilities | 290,900 | 238,000 |
| 95,800 | 95,800 | |
| Common stock, $10 par | 542,200 | 542,200 |
| Paid-in capital in excess of par—Common stock | 67,200 | 67,200 |
| 469,800 | 243,200 |
Using the balance sheets for Kellman Company, if net income is $100,300 and interest expense is $39,400 for Year 2, and the market price of common shares is $50, what is the price-earnings ratio on common stock for Year 2? (Round intermediate calculation and final answer to two decimal places.)
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