at is the rate earned on total assets for 2014? 2. What is the rate earned on stockholders' equity for 2014 3. What is the earnings per share on common stock for 2014? 4. If the market price is P30, what is the P/E ratio for the comm

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Net income is P115 000 and interest expense is P30 000 for 2014.
 
1. What is the rate earned on total assets for 2014?
2. What is the rate earned on stockholders' equity for 2014
3. What is the earnings per share on common stock for 2014?
4. If the market price is P30, what is the P/E ratio for the common stock?
Problem 1. The Balance Sheet of 3A7 Corporation at the end of the first
years of operations indicate the following:
2013
600 000
2014
560 000
Total current assets
Total investments
Total PPE
60 000
40 000
900 000
700 000
Total assets
1560 000 1300 000
Total current liabilities
150 000
80 000
Total long term liabilities
Preferred 9% stock, P100 par
Common stock, P10 par
APIC in excess of common stock's par 60 000 60 000
Retained earnings
Total liabilities and equity
350 000
250 000
100 000
100 000
600 000
600 000
300 000
210 000
1560 000
1300 000
Transcribed Image Text:Problem 1. The Balance Sheet of 3A7 Corporation at the end of the first years of operations indicate the following: 2013 600 000 2014 560 000 Total current assets Total investments Total PPE 60 000 40 000 900 000 700 000 Total assets 1560 000 1300 000 Total current liabilities 150 000 80 000 Total long term liabilities Preferred 9% stock, P100 par Common stock, P10 par APIC in excess of common stock's par 60 000 60 000 Retained earnings Total liabilities and equity 350 000 250 000 100 000 100 000 600 000 600 000 300 000 210 000 1560 000 1300 000
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