Financial Accounting, Student Value Edition (5th Edition)
5th Edition
ISBN: 9780134728520
Author: Robert Kemp, Jeffrey Waybright
Publisher: PEARSON
expand_more
expand_more
format_list_bulleted
Videos
Question
Chapter 12, Problem 9SE
1.
To determine
Compute earnings per share of Incorporation IS for the year 2018.
2.
To determine
Compute price earnings ratio of Incorporation IS for the year 2018.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
Jolie Foster Care Homes Incorporated shows the following data:
Net Income
$ 130,000
143,000
207,000
Total Assets
$ 2,330,000
2,050,000
2,740,000
200,000
2,160,000
Year
20X1
20X2
20X3
20X4
a-1. Compute the ratio of net income to total assets for each year.
Note: Input your answers as a percent rounded to 2 decimal places.
Year
20X1
20X2
20X3
20X4
Return on Assets
%
%
%
Stockholders' Equity
$ 1,795,000
1,587,000
1,790,000
1,620,000
%
Total Debt
$ 535,000
463,000
950,000
540,000
return on equity (Learning Objective
Assume that Skippito, Inc., has the following data:
Net income for 2010..........
Preferred dividends for 2010..
Total stockholders' equity, 12/31/2010.
Total stockholders' equity, 12/31/2009.
Common stockholders' equity, 12/31/2010.
Common stockholders' equity, 12/31/2009.
Requirements
1. Calculate Skippito's return on equity for 2010.
2. Calculate Skippito's return on common equity for 2010.
3. Comment on Skippito's performance during 2010.
$ 223,000
$ 23,000
$1,009,000
$1,384,000
$ 987,000
$1,207,000
Learning Task 2: Consider the following listing on stocks and answer the questions that follow.:
52-WK
YLD% VOL(100s)
4050
1070
HI
LOW
STOCK
HI
LO
DIV
CLOSE
NETCHG
118.50
-0.50
2.8
1.1
120
45.5
3.5
105
12
GGG
70
16
HHH
45
32.7
0.9
15.80
0.10
1. What was the lowest price of the stocks for the last 52 weeks?
2. What was the dividend per share last year?
3. What was the annual percentage yield last year?
4. What was the closing price in the last trading day?
5. What was the closing price the day before the last trading day?
For Stock GGG
For Stock HHH
For nos. 6-10. Please refer to the table below and answer the questions that follow:
Bid
Ask/Offer
Size
Price
Price
Size
360
364,200
23.6000
23.8000
22,000
188,600
2
11
61,600
23.5500
23.900
56
537,500
23.5000
23.1500
4,100
1
6. What is the total number of traders who wishes to buy a total of 537,500 shares at P23.50 per share?
7. How many trader/s is willing to sell his/her 22,000 shares for P23.80 per share?
8. What is the total number of…
Chapter 12 Solutions
Financial Accounting, Student Value Edition (5th Edition)
Ch. 12 - Prob. 1DQCh. 12 - Which amount is the base amount for vertical...Ch. 12 - Prob. 3DQCh. 12 - Prob. 4DQCh. 12 - Prob. 5DQCh. 12 - Prob. 6DQCh. 12 - Prob. 7DQCh. 12 - How would you expect a recession to affect asset...Ch. 12 - Prob. 9DQCh. 12 - Prob. 10DQ
Ch. 12 - Prob. 1SCCh. 12 - Prob. 2SCCh. 12 - Prob. 3SCCh. 12 - Prob. 4SCCh. 12 - Prob. 5SCCh. 12 - Prob. 6SCCh. 12 - Prob. 7SCCh. 12 - Prob. 8SCCh. 12 - Prob. 9SCCh. 12 - Prob. 10SCCh. 12 - Prob. 11SCCh. 12 - Prob. 12SCCh. 12 - Prob. 1SECh. 12 - Prob. 2SECh. 12 - Prob. 3SECh. 12 - Prob. 4SECh. 12 - Prob. 5SECh. 12 - Prob. 6SECh. 12 - Prob. 7SECh. 12 - Prob. 8SECh. 12 - Prob. 9SECh. 12 - Prob. 10SECh. 12 - Horizontal analysis(Learning Objective 2)15-20 min...Ch. 12 - Prob. 12AECh. 12 - Horizontal analysis(Learning Objective 2)15-20...Ch. 12 - Prob. 14AECh. 12 - Prob. 15AECh. 12 - Prob. 16AECh. 12 - Prob. 17AECh. 12 - Horizontal analysis(Learning Objective 2)15-20...Ch. 12 - Prob. 26BECh. 12 - Prob. 27BECh. 12 - Prob. 28BECh. 12 - Prob. 29BECh. 12 - Prob. 30BECh. 12 - Trend percentages and return on assets (Learning...Ch. 12 - Common-size financial statements and profitability...Ch. 12 - Current ratio, debt ratio, EPS (Learning Objective...Ch. 12 - Calculating various ratios for analysis (Learning...Ch. 12 - Prob. 35APCh. 12 - Prob. 36APCh. 12 - Trend percentages and return on assets (Learning...Ch. 12 - Common-size financial statements and profitability...Ch. 12 - Prob. 39BPCh. 12 - Calculating various ratios for analysis(Learning...Ch. 12 - Calculating various ratios for analysis (Learning...Ch. 12 - Prob. 42BPCh. 12 - Prob. 1CECh. 12 - Prob. 1CPCh. 12 - Prob. 1EIACh. 12 - Prob. 2EIACh. 12 - Prob. 1FACh. 12 - Industry Analysis Purpose: To help you understand...Ch. 12 - Prob. 1SBACh. 12 - Prob. 1WC
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
- gnment #11 - Chapter 14 Question 1 of 7 Current Attempt in Progress Condensed data from the comparative statement of financial position of Penny Worth Inc. 2021 2020 2019 Current assets $114,000 $112,000 $102,000 Non-current assets 404,000 330,000 300,000 Current liabilities 111,000 99.000 96,000 Non-current liabilities 90,000 111,000 121,000 Common shares 110,000 101.000 101,000 Retained earnings 207,000 131,000 84,000 (a) Using horizontal analysis, calculate the percentage of a base-year amount, using 2019 as the b decimal place, eg. 15.2%.)arrow_forwardCarlos Company had the following stock outstanding and Retained Earnings at December 31, 2018: Common Stock (par $1; outstanding, 400,000 shares) Preferred Stock, 9% (par $10; outstanding, 18,100 shares) Retained Earnings $ 400,000 181,000 957,000 On December 31, 2018, the board of directors is considering the distribution of a cash dividend to the common and preferred stockholders. No dividends were declared during 2016 or 2017. Three independent cases are assumed: The preferred stock is noncumulative; the total amount of 2018 dividends would be $18,000. The preferred stock is cumulative; the total amount of 2018 dividends would be $15,000. Dividends were not in arrears prior to 2016. Same as Case B, except the amount is $58,000. Case A: Case B: Case C: Required: 1-a. Compute the amount of 2018 dividends, in total, that would be payable to each class of stockholders if dividends were declared as described in each case. 1-b. Compute the amount of 2018 dividends per share payable to…arrow_forwardAdditional information: 1. The market price of Pina’s common stock was $7.00, $7.50, and $8.50 for 2020, 2021, and 2022, respectively. 2. You must compute dividends paid. All dividends were paid in cash. Compute the following ratios for 2021 and 2022. 2022 2021 Profit margin enter percentages % enter percentages % (Round answers to 1 decimal place, e.g. 1.5%.) Gross profit rate enter percentages % enter percentages % (Round answers to 1 decimal place, e.g. 1.5%.) Asset turnover enter asset turnover in times times enter asset turnover in times times (Round answers to 2 decimal places, e.g. 1.83.) Earnings per share $enter earnings per share in dollars $enter earnings per share in dollars (Round answers to 2 decimal places, e.g. 1.83.) Price-earnings ratio enter price-earnings ratio in times times enter price-earnings ratio in times times (Round answers to 1 decimal place,…arrow_forward
- You are given the following information: Stockholders? equity = GHS1,250; price/earnings ratio = 5; shares outstanding = 25; and %3D market/book ratio = 1.5. %3D Calculate the market price of a share of the company?s stock. O A. GHS 33.33 B. GHS 75.00 C. GHS 10.00 D. GHS166.67 O E. GHS133.32arrow_forward(Learning Objective 7: Evaluate liquidity using the quick [acid-test] ratio and days’sales in receivables) Northern Products reported the following amounts in its 2019 financialstatements. The 2018 amounts are given for comparison.2019 2018Current assets:Cash............................................ $ 9,500Short-term investments................ 7,000Accounts receivable..................... $70,100Less: Allowance foruncollectibles.......................$86,500(7,500) (5,500) 64,600Inventory..................................... 190,000Prepaid insurance ........................ 2,200Total current assets..................... 273,300Total current liabilities.................... 106,000Net sales (all on account) ................$ 9,50010,50079,000189,0002,200290,20099,0001,077,000 734,000Requirements1. Compute Northern’s quick (acid-test) ratio at the end of 2019. Round to two decimalplaces. How does the quick ratio compare with the industry average of 0.92?2. Compare days’ sales…arrow_forwardJolie Foster Care Homes Incorporated shows the following data: Total Assets $ 1,970,000 2,460,000 2,740,000 2,830,000 Year 20X1 20X2 20X3 20X4 Net Income $ 192,000 221,000 196,000 189,000 Year 20X1 20X2 20X3 20X4 a-1. Compute the ratio of net income to total assets for each year. Note: Input your answers as a percent rounded to 2 decimal places. Return on Assets Stockholders' Equity $ 1,460,000 1,845,000 1,910,000 1,900,000 % % % % Total Debt $ 510,000 615,000 830,000 930,000arrow_forward
- Compute and Interpret Altman's Z-scores Following is selected financial information for Netflix, for 2018 and 2017. Note: Complete the entire question in Excel and format each answer to two decimal places. Then enter the answers into the provided spaces below with two decimal pla In thousands, except per share data Current assets 2018 2017 $10,178,842 $8,053,473 Current liabilities Total assets) Total liabilities Shares outstanding Retained earnings Stock price per share 6487,320 5,466.312 27,273,120 19.963.379 21,772,417 16.202.325 458,429 455,063 2.942.359 1,731,117 281.00 191.96 Sales 15,794,341 12,277,349 Earnings before interest and taxes 1,685,487 838,679 Compute and interpret Aldman Z-scores for the company for both years. Year 2017 2018 Z-score Is the company's bankruptcy risk increasing or decreasing over this period? =arrow_forwardUsing Excel for financial statement analysis Download an Excel temp/ate for this problem online in MyAccountingLab or at http://www.pearsonhighered.com/Horngren Riverside Sweets, a retail candy store chain, reported the following figures: Additional financial information: a. 75% of net sales revenue are on account. b. Market price of stock is $36 per share on June 30, 2019. c. Annual dividend for 2019 was $1.50 per share. d. All short-term investments are cash equivalents. Requirements Perform a horizontal analysis on the balance sheet for 2018 and 2019. Perform a vertical analysis on the income statement. Compute the following ratios: a. Working Capital b. Current Ratio c. Acid-Test (Quick) Ratio d. Cash Ratio e. Accounts Receivable Turnover f. Days’ Sales in Receivables g. Inventory Turnover h. Days’ Sales in Inventory i. Gross Profit Percentage j. Debt Ratio k. Debt to Equity Ratio l. Times-Interest-Earned Ratio m. Profit Margin Ratio n. Rate of Return on Total Assets o. Asset…arrow_forwardThe following income statement and balance sheets for Virtual Gaming Systems are provided. VIRTUAL GAMING SYSTEMS Income Statement For the year ended December 31, 2021 Net sales Cost of goods sold Gross profit Expenses: Operating expenses. Depreciation expense Loss on sale of land Interest expense Income tax expense Total expenses Net income Assets Current assets: Cash Accounts receivable Inventory Prepaid rent Long-term assets: Investment in bonds $852,000 27,000 7,400 12,000 42,000 $3,006,000 1,944,000 1,062,000 940, 400 $ 121,600 VIRTUAL GAMING SYSTEMS Land Equipment Less: Accumulated depreciation Total assets Liabilities and Stockholders' Equity Current liabilities: Accounts payable Interest payable Income tax payable. Long-term liabilities: Notes payable Stockholders' equity: Common stock Retained earnings Balance Sheets December 31 2021 $180,000 75,000 99,000 11,400 99,000 204,000 264,000 (63,000) $869,400 $ 60,000 4,800 12,000 279,000 294,000 219,600 2020 $138,000 54,000 129,000…arrow_forward
- Write an excel formula to find: Determine how much $100 of each stock would be worth on 12/31/2014 if you purchased it on 1/2/2013. Price On: 1/2/2013 $70.8412/31/2014 $104.57Growth 47.61%arrow_forwardSHOW FULL WORK (PROCESS) 37. Market Value Ratios Smolira Golf has 10,000 shares of common stock outstanding, and the market price for a share of stock at the end of 2019 was $73. What is the price-earnings ratio? What is the price-sales ratio? What are the dividends per share? What is the market-to-book ratio at the end of 2019?arrow_forwardCompute and Interpret Altman's Z-scores Following is selected financial information for Netflix, for 2018 and 2017. E4-28. $ thousands, except per share data 2018 2017 Current assets $ 9,694,135 $ 7,669,974 ... Current liabilities.. Total assets .. Total liabilities.. Shares outstanding. Retained earnings Stock price per share 6,487,320 25,974,400 5,466,312 19,012,742 ... . 20,735,635 436,598,597 15,430,786 433,392,686 2,942,359 1,731,117 267.66 191.96 Sales.... 15,794,341 1,605,226 11,692,713 Earnings before interest and taxes.. 838,679 Required a. Compute and compare the Altman Z-scores for both years. What explains the apparent trend? b. Is the company more likely to go bankrupt given the Z-score in 2018 compared to 2017? Explain.arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Cornerstones of Financial AccountingAccountingISBN:9781337690881Author:Jay Rich, Jeff JonesPublisher:Cengage Learning
College Accounting, Chapters 1-27AccountingISBN:9781337794756Author:HEINTZ, James A.Publisher:Cengage Learning,
Cornerstones of Financial Accounting
Accounting
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Cengage Learning
College Accounting, Chapters 1-27
Accounting
ISBN:9781337794756
Author:HEINTZ, James A.
Publisher:Cengage Learning,
Financial ratio analysis; Author: The Finance Storyteller;https://www.youtube.com/watch?v=MTq7HuvoGck;License: Standard Youtube License