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ACCEL'S COMPANIES Income Statement Years Ended May 31, 2018 and 2017 2018 2017 Net Sales Revenue $ 40,600 $ 40,500 Cost of Goods Sold 28,400 30,600 Interest Expense 600 570 All Other Expenses 4,300 8,200 Net Income $ 7,300 $ 1,130

ACCEL'S COMPANIES Income Statement Years Ended May 31, 2018 and 2017 2018 2017 Net Sales Revenue $ 40,600 $ 40,500 Cost of Goods Sold 28,400 30,600 Interest Expense 600 570 All Other Expenses 4,300 8,200 Net Income $ 7,300 $ 1,130

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Use the following information for Short Exercises S15-6 through S15-10.

Accel’s Companies, a home improvement store chain, reported the following summarized figures:

Accel’s has 10,000 common shares outstanding during 2018.

Computing EPS and P/E ratio

Requirements

  1. Compute earnings per share (EPS) for 2018 for Accel’s. Round to the nearest cent.
  2. Compute Accel’s Companies’ price/earnings ratio for 2018. The market price Per share of Accel’s stock is $12.50.
  3. What do these results mean when evaluating Accel’s Companies’ profitability?
ACCEL'S COMPANIES Income Statement Years Ended May 31, 2018 and 2017 2018 2017 Net Sales Revenue $ 40,600 $ 40,500 Cost of Goods Sold 28,400 30,600 Interest Expense 600 570 All Other Expenses 4,300 8,200 Net Income $ 7,300 $ 1,130
Transcribed Image Text:ACCEL'S COMPANIES Income Statement Years Ended May 31, 2018 and 2017 2018 2017 Net Sales Revenue $ 40,600 $ 40,500 Cost of Goods Sold 28,400 30,600 Interest Expense 600 570 All Other Expenses 4,300 8,200 Net Income $ 7,300 $ 1,130
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