2. The balance sheet for Putnam Corporation at the end of the current year include the following: ManEco-01 Page 7 of 9 FINANCIAL STATEMENT ANALYIS Bonds payable, 6% P5,000,000 1,000,000 6% Preferred stock, P100 par Common stock, P10 par. 2,000,000 Income before income taxes was P950,000 and income tax expense for the current year amounted to P285,000. Cash dividends paid on common stock were P200,000, and the common stock was selling for P40 per share at the end of the year. There were no ownership changes during the year. Instructions Determine each of the following: (a) times Interest earned. (b) earnings per share for common stock. (c) price-earnings ratio.
2. The balance sheet for Putnam Corporation at the end of the current year include the following: ManEco-01 Page 7 of 9 FINANCIAL STATEMENT ANALYIS Bonds payable, 6% P5,000,000 1,000,000 6% Preferred stock, P100 par Common stock, P10 par. 2,000,000 Income before income taxes was P950,000 and income tax expense for the current year amounted to P285,000. Cash dividends paid on common stock were P200,000, and the common stock was selling for P40 per share at the end of the year. There were no ownership changes during the year. Instructions Determine each of the following: (a) times Interest earned. (b) earnings per share for common stock. (c) price-earnings ratio.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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