Five Measures of Solvency or Profitability The balance sheet for Garcon Inc. at the end of the current fiscal year indicated the following: Bonds payable, 8% $5,000,000 Preferred $4 stock, $50 par $2,500,000 Common stock, $10 par $5,000,000 Income before income tax was $3,000,000, and income taxes were $1,200,000 for the current year. Cash dividends paid on common stock during the current year totaled $1,200,000. The common stock was selling for $32 per share at the end of the year. Determine each of the following. Round 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

Projected Spontaneous Liabilities Smiley Corporation's current sales and partial balance sheet are shown below.     This year Sales   $ 10,000   Balance Sheet: Liabilities         Accounts payable   $ 1,000   Notes payable   $ 2,500   Accruals   $ 1,600       Total current liabilities   $ 5,100   Long-term bonds   $ 2,000       Total liabilities   $ 7,100   Common stock   $ 1,000   Retained earnings   $ 2,000       Total common equity   $ 3,000     Total liabilities & equity   $ 10,100     Sales are expected to grow by 10% next year. Assuming no change in operations from this year to next year, what are the projected spontaneous liabilities? Do not round intermediate calculations. Round your answer to the nearest dollar. $

Return on Equity Evans & Sons, Inc., disclosed the following information in a recent annual report: Net Income Average stockholders' equity Dividend per common share Earnings per share Market price per common share, year-end Net income Previous Year Current Year $94,500 $129,600 1,000,000 1,500,000 Previous Year $ Current Year $ 5.13 7.70 51.30 Calculate the return on equity for Evans & Sons for each year. Did the return improve? Numerator 5.40 8.64 56.70 Denominator ◆ Average stockholders' equity X 8 x Did the return improve? The return on common stockholders' equity decreased X X from the previous year to the current year. ROE % %

The most recent financial statements for Alexander Company are shown here: Income Statement Balance Sheet Sales $ 55,000 Current assets $ 86,130 Long-term debt $ 59,400 Costs 35,200 Fixed assets 47,520 Equity 74,250 Taxable income $ 19,800 Total $ 133,650 Total $ 133,650 Taxes (22%) 4,356 Net income $ 15,444 Assets and costs are proportional to sales. The company maintains a constant 36 percent dividend payout ratio and a constant debt-equity ratio. What is the maximum increase in sales that can be sustained assuming no new equity is issued?

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A firm’s balance sheets for the last two years are as follows:   YEAR 20X1 Assets   Liabilities and Equity Cash $ 8,000   Accounts payable $ 15,000         Accruals   13,000 Accounts receivable   9,000   Current bank note   14,000 Inventory   20,000   Long-term debt   64,000 Plant and equipment   103,000   Common stock   15,000         Retained earnings   19,000   $ 140,000     $ 140,000       YEAR 20X2 Assets   Liabilities and Equity Cash $ 4,000   Accounts payable $ 10,000         Accruals   8,000 Accounts receivable   13,000   Current bank note   14,000 Inventory   20,000   Long-term debt   71,000 Plant and equipment   103,000   Common stock   17,000         Retained earnings   20,000   $ 140,000     $ 140,000     Sales in 20X1 were $225,000. Sales in 20X2 were $225,000.   Based solely on the current ratio and the quick ratio, has the firm’s liquidity position deteriorated or improved? Round your answers to two decimal places.…

WD 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 $ 308,000

[The following information applies to the questions displayed below.]   Markus Company’s common stock sold for $5.25 per share at the end of this year. The company paid a common stock dividend of $0.63 per share this year. It also provided the following data excerpts from this year’s financial statements:          EndingBalance BeginningBalance Cash $ 49,000 $ 44,200 Accounts receivable $ 92,000 $ 68,700 Inventory $ 76,300 $ 92,000 Current assets $ 217,300 $ 204,900 Total assets $ 801,000 $ 875,400 Current liabilities $ 85,500 $ 90,000 Total liabilities $ 206,000 $ 185,400 Common stock, $1 par value $ 165,000 $ 165,000 Total stockholders’ equity $ 595,000 $ 690,000 Total liabilities and stockholders’ equity $ 801,000 $ 875,400           This Year Sales (all on account) $ 1,095,000 Cost of goods sold $ 635,100 Gross margin $ 459,900 Net operating income $ 313,875 Interest expense $ 15,500 Net income $ 208,862     10. What is the…

A public company has the following balance sheet ($000’s)   Cash                                      $540              Accounts Receivable        $4,580 Inventories                        $7,400              Long Term Debt                   $12,590 Net Fixed Assets             $18,955              Common Equity                 $18,885               Total Assets       $31,475              Total debt & Equity             $31,475 At present, the firm’s common stock is selling for a price equal to its book value, and the form’s bonds are selling at par.  The market requires a 15% return on the common stock, the firm’s bond’s command a yield to maturity of 8% and firm faces a tax rate of 34%.  What is the firm’s weighted average cost of capital?

The income statement for Cullumber, Inc. is as follows: CULLUMBER, INC. Income Statement For the Year Ended December 31, 2021 Sales revenue $442,000 Cost of goods sold 264,000 Gross profit 178,000 Expenses (including $19,000 interest and $36,700 income taxes) 114.000 Net income $64,000 Additional information: 1 2 Common stock outstanding January 1, 2021 was 44,000 shares and 54,000 shares were outstanding at December 31, 2021. The market price of Cullumber, Inc., stock was $16 in 2021. 3. Cash dividends of $17,130 were paid, $1,770 of which were to preferred stockholders. Compute the following measures for 2021: (Round Earnings per share to 2 decimal places, eg. 52.75. Round other answers to 1 decimal place, e.g. 52.7.) (a) Earnings per share $ (b) Price-earnings ratio (c) Payout ratio (d) Times interest earned 1.31 12.2 times 26.7 % times