Managerial Accounting: Tools for Business Decision Making
7th Edition
ISBN: 9781118334331
Author: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
Publisher: WILEY
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Question
Chapter 14, Problem 14.9E
(a)
To determine
To compute: Earnings per share of S Company for 2017.
(b)
To determine
To compute: Price/earnings ratio of S Company for 2017.
(c)
To determine
To compute: Payout ratio of S Company for 2017.
(d)
To determine
To compute: Times interest earned of S Company for 2017.
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Additional information:
• Weighted-average ordinary shares in 2017 were $60,000
QUESTIONS
Based on the financial data above, do the following:
a. Calculate the financial ratio of VENUS TRADING COMPANY in 2017 below:
• Current ratio
• Account receivable turnover
• Inventory turnover
• Asset turnover
• Return on assets
• Return on ordinary shareholders equity
• Earnings per share
• Debts to total assets ratio
Provide an interpretation for each of the financial ratio calculations above.
b. Based on the calculation results in point a, provide an analysis of performance
finance VENUS TRADING COMPANY in 2017.
Triumph​'s has 40,000 common shares outstanding during 2018.
Requirement 1. Compute earnings per share​ (EPS) for 2018 for Triumph​'s. Round to the nearest cent.
Requirement 2. Compute Triumph​'s ​Companies' price/earnings ratio for
2018. The market price per share of Triumph​'s stock is $15.00.
Triumph's Companies
Income Statement
Years Ended May 31, 2018 and 2017
                                               2018                                      2017
Net Sales Revenue                      $42,400
$41,100
Cost of Goods Sold                      22,500
29,300
Interest Expense                       400
320
All Other Expenses                      6,700
7,800
Net Income                              $12,800
$3,680
 Â
Triumph's Companies
Balance Sheet
May 31, 2018 and 2017
Â
Assets                                                                                     Liabilities
2018              2017                                                  2018…
What is the payout ratio for the following?
SKYSONG, INC.Income StatementFor the Year Ended December 31, 2022
Sales revenue
Â
$404,100
Cost of goods sold
Â
234,000
Gross profit
Â
170,100
Expenses (including $16,700Â interest and $26,400Â income taxes)
Â
83,500
Net income
Â
$Â 86,600
Additional information:
1.
Â
Common stock outstanding January 1, 2022, was 24,700 shares, and 37,100 shares were outstanding at December 31, 2022.
2.
Â
The market price of Skysong stock was $14 in 2022.
3.
Â
Cash dividends of $22,900Â were paid, $4,900Â of which were to preferred stockholders.
Compute the following measures for 2022. (Round all answers to 2 decimal places, e.g. 1.83 or 2.51%)
(a)
Â
Earnings per share
Â
$enter earnings per share in dollarsÂ
Â
(b)
Â
Price-earnings ratio
Â
enter price-earnings ratio in times
 times
(c)
Â
Payout ratio
Â
enter payout ratio in percentages
 %
(d)
Â
Times interest earned
Â
enter times interest earned…
Chapter 14 Solutions
Managerial Accounting: Tools for Business Decision Making
Ch. 14 - (a) Jose Ramirez believes that the analysis of...Ch. 14 - (a) Distinguish among the following bases of...Ch. 14 - Prob. 3QCh. 14 - Prob. 4QCh. 14 - Prob. 5QCh. 14 - Prob. 6QCh. 14 - Prob. 7QCh. 14 - What do the following classes of ratios measure?...Ch. 14 - What is the difference between the current ratio...Ch. 14 - Hizar Company, a retail store, has an accounts...
Ch. 14 - Which ratios should be used to help answer the...Ch. 14 - The price-earnings ratio of General Motors...Ch. 14 - What is the formula for computing the payout...Ch. 14 - Holding all other factors constant, indicate...Ch. 14 - Prob. 15QCh. 14 - Prob. 16QCh. 14 - Prob. 17QCh. 14 - Prob. 18QCh. 14 - Prob. 19QCh. 14 - Why is it important to report discontinued...Ch. 14 - You are considering investing in Wingert...Ch. 14 - Prob. 22QCh. 14 - Prob. 23QCh. 14 - You recently received a letter from your Uncle...Ch. 14 - Prob. 14.2BECh. 14 - Using the following data from the comparative...Ch. 14 - Using the same data presented above in BE14-3 for...Ch. 14 - Net income was 500,000 in 2016, 450,000 in 2017,...Ch. 14 - Prob. 14.6BECh. 14 - Prob. 14.7BECh. 14 - Prob. 14.8BECh. 14 - Prob. 14.9BECh. 14 - Prob. 14.10BECh. 14 - The following data are taken from the financial...Ch. 14 - Prob. 14.12BECh. 14 - Prob. 14.13BECh. 14 - Prob. 14.14BECh. 14 - On June 30. Holloway Corporation discontinued its...Ch. 14 - Prob. 14.1DICh. 14 - Prob. 14.2DICh. 14 - In its proposed 2017 income statement. Hrabik...Ch. 14 - Financial information for Kurzen Inc. is presented...Ch. 14 - Operating data for Navarro Corporation are...Ch. 14 - The comparative condensed balance sheets of Gurley...Ch. 14 - The comparative condensed income statements of...Ch. 14 - Suppose Nordstrom, Inc., which operates department...Ch. 14 - Keener Incorporated had the following transactions...Ch. 14 - Frizell Company has the following comparative...Ch. 14 - Prob. 14.8ECh. 14 - Prob. 14.9ECh. 14 - Prob. 14.10ECh. 14 - Wiemers Corporations comparative balance sheets...Ch. 14 - Prob. 14.12ECh. 14 - Prob. 14.13ECh. 14 - Comparative statement data for Farris Company and...Ch. 14 - The comparative statements of Painter Tool Company...Ch. 14 - Prob. 14.3APCh. 14 - Financial information for Messersmith Company is...Ch. 14 - Prob. 14.5APCh. 14 - Prob. 14.6APCh. 14 - Prob. 14.7APCh. 14 - Prob. 14.8APCh. 14 - Prob. 14.9APCh. 14 - Financial Reporting Problem: Apple Inc. Your...Ch. 14 - PepsiCos financial statements are presented at...Ch. 14 - Prob. 14.3BYPCh. 14 - As the CPA for Gandara Manufacturing Inc., you...Ch. 14 - The Management Discussion and Analysis section of...Ch. 14 - Prob. 14.6BYPCh. 14 - Dave Schonhardt, president of Schonhardt...
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