A company's calendar-year financial data are shown below. The company had total assetsof $339,000 and total equity of $144,400 for the prior year. No additional shares wereissued during the year. The December 31 market price per share is $49.50. Cash dividendsof $19,500 were paid during the year. Calculate the following ratios for the company:(a) Debt ratio(b) Equity ratio(c) Debt-to-equity ratio(d) Times interest earned(e) Total asset turnoverNet sales.Cost of goods sold.Gross profit.Operating expensesOperating income.Interest expenseIncome before taxes.Income taxesNet profitCashAccounts receivable (net)InventoryProperty, plant and equipment (net).Total assetsCurrent liabilities.Long-term notes payable.Share Capital: $5 par value.Retained earnings.Total liabilities and equity$650,000422,500$227,500140,500$ 87,0009,100$ 77,90023,400$ 54,500Ending Balances$ 19,50065,00071,500195,000$351,000$74,10097,50065,000114,400$351,000

Ratios are the measures that are used to analyze the financial statements that are income statement…

Answered: A company's calendar-year financial…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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The following data were taken from the financial statements of Hunter Inc. for December 31 of two recent years: Line Item Description Current Year Previous Year Accounts payable $362,000 $226,000 Current maturities of serial bonds payable 360,000 360,000 Serial bonds payable, 10 % 1,700,000 2,060,000 Common stock, $1 par value 70,000 90,000 Paid-in capital in excess of par 760,000 760,000 Retained earnings 2, 630,000 2,090,000 The income before income tax expense was $803, 400 and $703,000 for the current and previous years, respectively. a. Determine the ratio of liabilities to stockholders' equity at the end of each year. Round your answers to one decimal place. Line Item Description Ratio Current year fill in the blank 1 Previous year fill in the blank 2 b. Determine the times interest earned ratio for both years. Round your answers to one decimal place.
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% $1,600,000 Preferred $5 stock, $50 par $251,000 Common stock, $6 par $466,860.00 Income before income tax was $486,400, and income taxes were $72,250 for the current year. Cash dividends paid on common stock during the current year totaled $163,401. The common stock was selling for $60 per share at the end of the year. Determine each of the following. Round answers 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 %24
Lake Incorporated and River Incorporated reported net incomes of $275,000 and $231,000, respectively, for the most recent fiscal year. Both companies had 55,000 shares of common stock issued and outstanding. The market price per share of Lake's stock was $58, while River's sold for $62 per share. Required a. Determine the P/E ratio for each company. b. Based on the P/E ratios computed in Requirement a, which company do investors believe has the greater potential for growth in income? Complete this question by entering your answers in the tabs below. Required A Required B Determine the P/E ratio for each company. Note: Do not round intermediate calculations. Round your answers to the nearest whole number. Company Lake, Incorporated River, Incorporated P/E Ratio
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
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The balance sheet for Garcon Inc. at the end of the current fiscal year indicated the following: Bonds payable, 6% $1,500,000 Preferred $5 stock, $50 par $182,000 Common stock, $12 par $163,800.00 Income before income tax was $342,000, and income taxes were $50,800 for the current year. Cash dividends paid on common stock during the current year totaled $43,680. The common stock was selling for $160 per share at the end of the year. Determine each of the following. Round answers 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 fill in the blank 1 times b. Earnings per share on common stock $fill in the blank 2 c. Price-earnings ratio fill in the blank 3 d. Dividends per share of common stock $fill in the blank 4 e. Dividend yield
PickApart Arts, Inc., had earnings of $565,300 for the year. The company had 55,000 shares of common stock outstanding during the year and issued 23,000 shares of $50 par value preferred stock. The preferred stock has a dividend of $2.10 per share. There were no transactions in either common or preferred stock during the year. Determine the basic earnings per share for PickApart Arts for the year. Round answer to two decimal places.$fill in the blank 1per share
Five Measures of Solvency or Profitability The balance sheet for Quigg Inc. at the end of the current fiscal year indicated the following: Bonds payable, 8% $1,600,000 Preferred $5 stock, $50 par 211,000 Common stock, $10 par 1,635,250 Income before income tax expense was $409,600,and income taxes were $61,450 for the current year. Cash dividends paid on common stock during the current year totaled $89,939. The common stock was selling for $22 per share at the end of the year. Determine each of the following. Round answers 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 earmed ratio times b. Earnings per share on common stock C. Priceeamings rabo d. Divioends per share of common stock e. Dividene yd
The balance sheet for Garcon Inc. at the end of the current fiscal year indicated the following: Bonds payable, 6% $1,900,000 Preferred $10 stock, $50 par $52,000 Common stock, $10 par $384,800.00 Income before income tax was $239,400, and income taxes were $36,600 for the current year. Cash dividends paid on common stock during the current year totaled $46,176. The common stock was selling for $60 per share at the end of the year. Determine each of the following. Round answers 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 b. Earnings per share on common stock c. Price-earnings ratiofill d. Dividends per share of common stock 4 e. Dividend yieldfill in the blank 5%

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