2018 2017 Income Statement-partial: Net Income $ 34,380 $ 18,000 Dec. 31, 2018 Dec. 31, 2017 Balance Sheet-partial: Total Assets Paid-in Capital: Preferred Stock-11%, $9 Par Value; 60,000 shares authorized, 12,000 shares issued and outstanding Common Stock-$2 Par Value; 60,000 shares authorized, 50,000 shares issued and outstanding $ 285,000 $ 280,000 $ 108,000 $ 108,000 100,000 100,000 Paid-In Capital in Excess of Par-Common Retained Earnings Total Stockholders' Equity 14,000 14,000 60,500 38,000 $ 282,500 $ 260,000
2018 2017 Income Statement-partial: Net Income $ 34,380 $ 18,000 Dec. 31, 2018 Dec. 31, 2017 Balance Sheet-partial: Total Assets Paid-in Capital: Preferred Stock-11%, $9 Par Value; 60,000 shares authorized, 12,000 shares issued and outstanding Common Stock-$2 Par Value; 60,000 shares authorized, 50,000 shares issued and outstanding $ 285,000 $ 280,000 $ 108,000 $ 108,000 100,000 100,000 Paid-In Capital in Excess of Par-Common Retained Earnings Total Stockholders' Equity 14,000 14,000 60,500 38,000 $ 282,500 $ 260,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Computing earnings per share, price/earnings ratio, and
Bianchi Company reported these figures for 2018 and 2017:
Requirements
- Compute Bianchi Company’s earnings per share for 2018. Assume the company paid the minimum preferred dividend during 2018. Round to the nearest cent.
- Compute Bianchi Company’s price/earnings ratio for 2018. Assume the company’s market price per share of common stock is $9. Round to two decimals.
- Compute Bianchi Company’s rate of return on common stockholders’ equity for 2018. Assume the company paid the minimum preferred dividend during 2018. Round to the nearest whole percent.
Transcribed Image Text:2018
2017
Income Statement-partial:
Net Income
$ 34,380
$ 18,000
Dec. 31, 2018 Dec. 31, 2017
Balance Sheet-partial:
Total Assets
Paid-in Capital:
Preferred Stock-11%, $9 Par Value; 60,000 shares
authorized, 12,000 shares issued and outstanding
Common Stock-$2 Par Value; 60,000 shares
authorized, 50,000 shares issued and outstanding
$ 285,000
$ 280,000
$ 108,000
$ 108,000
100,000
100,000
Paid-In Capital in Excess of Par-Common
Retained Earnings
Total Stockholders' Equity
14,000
14,000
60,500
38,000
$ 282,500
$ 260,000
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