Calculate the EPS A company has the following information:1) Net sales: $2,00,0002) Cost of goods sold: $1,20,0003) Operating expenses: $30,0004) Interest expense: $10,0005) Income tax expense: $20,000Calculate the company's earnings per share ifthere are 10,000 shares outstanding.

Explanation of Net Sales:Net Sales refers to the total revenue a company generates from its sales,…

Answered: A company has the following…

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter3: Evaluation Of Financial Performance

Section: Chapter Questions

Problem 2P

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Income Statement Ratio The income statement of Holly Enterprises shows operating revenues of $134,800, selling expenses of $38,310, general and administrative expenses of $36,990, interest expense of $580, and income tax expense of $13,920. Hollys stockholders equity was $280,000 at the beginning of the year and $320,000 at the end of the year. The company has 20,000 shares of stock outstanding at the end of the year. Required Compute Hollys profit margin. What other information would you need in order to comment on whether this ratio is favorable?
Rebert Inc. showed the following balances for last year: Reberts net income for last year was 3,182,000. Refer to the information for Rebert Inc. above. Also, assume that the dividends paid to common stockholders for last year were 2,600,000 and that the market price per share of common stock is 51.50. Required: 1. Compute the dividends per share. 2. Compute the dividend yield. (Note: Round to two decimal places.) 3. Compute the dividend payout ratio. (Note: Round to two decimal places.)
Rebert Inc. showed the following balances for last year: Reberts net income for last year was 3,182,000. Refer to the information for Rebert Inc. above. Also, assume that the market price per share for Rebert is 51.50. Required: 1. Compute the dollar amount of preferred dividends. 2. Compute the number of common shares. 3. Compute earnings per share. (Note: Round to two decimals.) 4. Compute the price-earnings ratio. (Note: Round to the nearest whole number.)
Brandt Corporation had sales revenue of 500,000 for the current year. For the year, its cost of goods sold was 240,000, its operating expenses were 50,000, its interest revenue was 2,000, and its interest expense was 12,000. Brandts income tax rate is 30%. Prepare Brandts multiple-step income statement for the current year.
The income statement, statement of retained earnings, and balance sheet for Somerville Company are as follows: Includes both state and federal taxes. Refer to the information for Somerville Company on the previous pages. Also, assume that the price per common share for Somerville is 8.10. Required: Compute the price-earnings ratio. (Note: Round the answer to two decimal places.)
Here is the income statement for Teal Mountain Inc. TEAL MOUNTAIN INC.Income StatementFor the Year Ended December 31, 2020 Sales revenue $402,900 Cost of goods sold 256,700 Gross profit 146,200 Expenses (including $10,200 interest and $29,600 income taxes) 89,200 Net income $ 57,000 Additional information: 1. Common stock outstanding January 1, 2020, was 30,000 shares, and 39,000 shares were outstanding at December 31, 2020. 2. The market price of Teal Mountain stock was $15 in 2020. 3. Cash dividends of $24,700 were paid, $6,500 of which were to preferred stockholders. FInd the following: A.) Payout Ratio B.) Times interest earned
Here is the income statement for Teal Mountain Inc. TEAL MOUNTAIN INC.Income StatementFor the Year Ended December 31, 2020 Sales revenue $402,900 Cost of goods sold 256,700 Gross profit 146,200 Expenses (including $10,200 interest and $29,600 income taxes) 89,200 Net income $ 57,000 Additional information: 1. Common stock outstanding January 1, 2020, was 30,000 shares, and 39,000 shares were outstanding at December 31, 2020. 2. The market price of Teal Mountain stock was $15 in 2020. 3. Cash dividends of $24,700 were paid, $6,500 of which were to preferred stockholders. Compute the following measures for 2020. (Round all answers to 2 decimal places, e.g. 1.83 or 2.51%) (a) Earnings per share $enter a dollar amount (b) Price-earnings ratio enter Price-earnings ratio in times times (c) Payout ratio enter percentages % (d) Times interest earned enter Times interest…
Here is the income statement for Sunland, Inc. Sunland, Inc.Income StatementFor the Year Ended December 31, 2022 Net sales $430,000 Cost of goods sold 200,000 Gross profit 230,000 Expenses (including $10,000 interest and $23,000 income taxes) 103,000 Net income $ 127,000 Additional information: 1. Common stock outstanding January 1, 2022, was 27,750 shares, and 31,750 shares were outstanding at December 31, 2022. (Use a simple average for weighted-average.) 2. The market price of Sunland stock was $28 on December 31, 2022 3. Cash dividends of $28,140 were declared and paid. Compute the following measures for 2022. (Round Earnings per share to 2 decimal places, e.g. 1.65, and all other answers to 1 decimal place, e.g. 6.8 or 6.8%.) (a) Earnings per share $enter a dollar amount rounded to 2 decimal places (b) Price-earnings ratio enter a number of times rounded to 1 decimal place times (c) Payout ratio…
Here is the income statement for Windsor, Inc. WINDSOR, INC.Income StatementFor the Year Ended December 31, 2020 Sales revenue $420,100 Cost of goods sold 235,100 Gross profit 185,000 Expenses (including $16,100 interest and $21,900 income taxes) 72,500 Net income $ 112,500 Additional information: 1. Common stock outstanding January 1, 2020, was 22,400 shares, and 36,600 shares were outstanding at December 31, 2020. 2. The market price of Windsor stock was $12 in 2020. 3. Cash dividends of $22,600 were paid, $4,600 of which were to preferred stockholders. Compute the following measures for 2020. (Round all answers to 2 decimal places, e.g. 1.83 or 2.51%) (a) Earnings per share $enter a dollar amount (b) Price-earnings ratio enter Price-earnings ratio in times times (c) Payout ratio enter percentages % (d) Times interest earned enter Times interest earned times
Here is the income statement for Tamarisk, Inc. TAMARISK, INC. Income Statement For the Year Ended December 31, 2020 Sales revenue $419,200 251,500 Cost of goods sold Gross profit 167,700 Expenses (including $14,200 interest and $28,000 income taxes) 73,500 $94,200 Net income Additional information: Common stock outstanding January 1, 2020, was 24,400 shares, and 39,100 shares were outstanding at December 31, 2020. 1. The market price of Tamarisk stock was $12 in 2020. 2. Cash dividends of $22,800 were paid, $5,300 of which were to preferred stockholders. 3. Compute the following measures for 2020. (Round all answers to 2 decimal places, e.g. 1.83 or 2.5 1%) $ (a) Earnings per share (b) Price-earnings ratio times (c) Payout ratio (d) Times interest earned times
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Here is the income statement for Myers, Inc. MYERS, INC.Income StatementFor the Year Ended December 31, 2022 Net sales $400,000 Cost of goods sold 230,000 Gross profit 170,000 Expenses (including $16,000 interest and $24,000 income taxes) 98,000 Net income $ 72,000 Additional information: 1. Common stock outstanding January 1, 2022, was 32,000 shares, and 40,000 shares were outstanding at December 31, 2022. (Use a simple average for weighted-average.) 2. The market price of Myers stock was $14 on December 31, 2022. 3. Cash dividends of $21,000 were declared and paid. Compute the following measures for 2022. (Round earnings per share to 2 decimal places, e.g. 1.83 and all answers to 1 decimal places, e.g. 1.8 or 2.5%) (a) Earnings per share (b) Price-earnings ratio times (c) Payout ratio % (d) Times interest earned

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A company has the following information: 1) Net sales: $2,00,000 2) Cost of goods sold: $1,20,000 3) Operating expenses: $30,000 4) Interest expense: $10,000 5) Income tax expense: $20,000 Calculate the company's earnings per share if there are 10,000 shares outstanding.