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1)return on common stockholders equity 2)price-earnings ratio 3) dividend per share of common stock

1)return on common stockholders equity 2)price-earnings ratio 3) dividend per share of common stock

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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1)return on common stockholders equity 2)price-earnings ratio 3) dividend per share of common stock
PR 17-4B Measures of liquidity, solvency and profitability Obj. 3 - Describe and illustrate how to use financial statement analysis to assess liquidity., 4 - Describe and illustrate how to use financial statement analysis to assess solvency., 5 - Describe and illustrate to to use financial statement analysis to assess profitability. The comparative financial statements of Stargel Inc. are as follows. The market price of Stargel common stock was $119.70 on December 31, 20Y2. Excel Stargel Inc. Comparative Retained Earnings Statement For the Years Ended December 31, 20Y2 and 20Y1 20Υ2 20Υ1 Retained earnings, January 1.. Net income. $5,375,000 $4,545,00 900,000 925,00 Total $6,275,000 $5,470,00 Dividends: DIvidends. On preferred stock %24 45,000 $ 45,00 50,000 50,00 n On common stock.. $ 95,00 $ 95,000 $6,180,000 Total dividends. $5.375,00 Retained earnings, December 31
Transcribed Image Text:PR 17-4B Measures of liquidity, solvency and profitability Obj. 3 - Describe and illustrate how to use financial statement analysis to assess liquidity., 4 - Describe and illustrate how to use financial statement analysis to assess solvency., 5 - Describe and illustrate to to use financial statement analysis to assess profitability. The comparative financial statements of Stargel Inc. are as follows. The market price of Stargel common stock was $119.70 on December 31, 20Y2. Excel Stargel Inc. Comparative Retained Earnings Statement For the Years Ended December 31, 20Y2 and 20Y1 20Υ2 20Υ1 Retained earnings, January 1.. Net income. $5,375,000 $4,545,00 900,000 925,00 Total $6,275,000 $5,470,00 Dividends: DIvidends. On preferred stock %24 45,000 $ 45,00 50,000 50,00 n On common stock.. $ 95,00 $ 95,000 $6,180,000 Total dividends. $5.375,00 Retained earnings, December 31
Statement Ended December 31, 20Y2 and 20Y1 Cost of goods sold. Gross profit. 20Y2 20Y1 $10,000,000 $9 A00,000 Selling expenses Administrative expenses. 5,350,000 $ 4,650,000 $ 2,000,000 4,950,000 $4,A50,000 $1.880,000 Total operating expenses Income from operations 1,500,000 $ 3,500,000 $ 1,150,000 1A10,000 $3,290,000 Other income. Interes exRense Other expense finterest) Jncome before income tax $1,160,000 140,000 $1,300,000 150,000 $ 1,300,000 170,000 S,130,000 150,000 Income tax expense $1,150,000 Net income. 230,000 225,000 es $ 900,000 $ 925,000 Stargel Inc. Comparative Balance Sheet December 31, 20Y2 and 20Y1 20Υ2 20Υ1 Assets Current assets: Cash Marketable securities.. $ 500,000 $ 400,000 ,010,000 740.000+ 510,000-(29 cC 1,000,000 Accounts receivable (net) 1,190,000 + 950,000 2 Anventories 250,000 $3,690,000 229,000 Prepaid expenses Total current assets.. $3,089,000 2,350,000 2,300,000 Long-term investments.. Property, plant, and equipment (net) Total assets 3,740,000 3,366,000 $49,780,000 $8,755,000 Liabilities $ 880,000 $ 900,000 Current liabilities. Long-term liabilities: Mortgage note payable, 10%. Bonds payable, 10%. Total long-term liabilities $ 200,000 %24 1,500,000 1,500,000 $1,700,000 $1,500,000 $2,380,000 $2,600,000 Total liabilities $ 500,000 $ 500,000 500,000 Stockholders' Equity 500,000 Preferred $0.90 stock, $10 par 5,375,000 6,180,000 Common stock, $5 par.... Retained earnings... $7,180,000+ $6,375,000 $8,755,000 $9,780,000 Total stockholders' equity. Total liabilities and stockholders' equity. ructions
Transcribed Image Text:Statement Ended December 31, 20Y2 and 20Y1 Cost of goods sold. Gross profit. 20Y2 20Y1 $10,000,000 $9 A00,000 Selling expenses Administrative expenses. 5,350,000 $ 4,650,000 $ 2,000,000 4,950,000 $4,A50,000 $1.880,000 Total operating expenses Income from operations 1,500,000 $ 3,500,000 $ 1,150,000 1A10,000 $3,290,000 Other income. Interes exRense Other expense finterest) Jncome before income tax $1,160,000 140,000 $1,300,000 150,000 $ 1,300,000 170,000 S,130,000 150,000 Income tax expense $1,150,000 Net income. 230,000 225,000 es $ 900,000 $ 925,000 Stargel Inc. Comparative Balance Sheet December 31, 20Y2 and 20Y1 20Υ2 20Υ1 Assets Current assets: Cash Marketable securities.. $ 500,000 $ 400,000 ,010,000 740.000+ 510,000-(29 cC 1,000,000 Accounts receivable (net) 1,190,000 + 950,000 2 Anventories 250,000 $3,690,000 229,000 Prepaid expenses Total current assets.. $3,089,000 2,350,000 2,300,000 Long-term investments.. Property, plant, and equipment (net) Total assets 3,740,000 3,366,000 $49,780,000 $8,755,000 Liabilities $ 880,000 $ 900,000 Current liabilities. Long-term liabilities: Mortgage note payable, 10%. Bonds payable, 10%. Total long-term liabilities $ 200,000 %24 1,500,000 1,500,000 $1,700,000 $1,500,000 $2,380,000 $2,600,000 Total liabilities $ 500,000 $ 500,000 500,000 Stockholders' Equity 500,000 Preferred $0.90 stock, $10 par 5,375,000 6,180,000 Common stock, $5 par.... Retained earnings... $7,180,000+ $6,375,000 $8,755,000 $9,780,000 Total stockholders' equity. Total liabilities and stockholders' equity. ructions
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