Banner Company is a small publicly traded company. A recent analysis of its financial statements and stock price showed the following:SalesS60,000,000Net Income before TaxS8,500,000Average assets during the year$20,000,000Stock price as a multiple of earnings20XCorporate Income Tax Rate:21%Shares outstanding:15,000,000Calculate the following:1. Net profit margin before tax2. Net profit margin after tax3. Return on assets4. Earnings per share

The question is based on the concept of Accounting Ratios.

Answered: Banner Company is a small publicly…

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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The following information relates to the operations of Branded Ltd. The net profit after tax was $1,000,000. The company distributed ordinary dividends of $600,000 to its shareholders. Over the year, weighted average number of ordinary shares were 2,000,000. Ordinary shares are currently selling for $8.00 per share. What is the price-earnings ratio of the company? 12 times 20 times 15 times 16 times
Income statement. Construct the Barron Pizza, Inc. income statement for the year ending 2015 with the following information (the dollar amounts are in thousands of dollars) Shares outstanding: 16,673,000 Tax rate: 37.5% Interest expense: $6,072 Revenue: $889,345 Depreciation: $31,256 Selling, general, and administrative expense: S77,498 Other income: $1,118 Research and development. $4,193 Cost of goods sold: $750,757 Note: Enter all expenses as negative numbers. (Round the earnings per share to the nearest cent. Also, use a minus sign for numbers to be subtracted.) Income Statement Barron Pizza, Incorporated Year Ending 2015 (S in thousands, except earnings per share) Gross profit %24 %24 %24
A firm had the following financials last year: Sales Revenue = $3,060Accounts receivable = $500Interest expense = $126Total operating expenses = $600Accounts payable = $240Cost of goods sold = $1,800Dividend on preferred stock = $18Tax rate = 40% Number of outstanding number of common shares = 1,000 The E.P.S of the firm, rounded to four decimal places is
Consider the following income statement for the Heir Jordan Corporation: HEIR JORDAN CORPORATIONIncome Statement Sales $ 42,900 Costs 33,900 Taxable income $ 9,000 Taxes (21%) 1,890 Net income $ 7,110 Dividends $ 2,509 Addition to retained earnings 4,601 The balance sheet for the Heir Jordan Corporation follows. HEIR JORDAN CORPORATIONBalance Sheet Assets Liabilities and Owners’ Equity Current assets Current liabilities Cash $ 2,250 Accounts payable $ 4,000 Accounts receivable 5,100 Notes payable 8,000 Inventory 8,000 Total $ 12,000 Total $ 15,350 Long-term debt $ 22,000 Owners’ equity Fixed assets Common stock and…
The most recent financial statements for Cardinal, Inc., are shown here: Income Statement Balance Sheet $27,000 17,900 $29,700 35,500 Sales Assets $65,200 Debt Costs Equity Тахable $ 9,100 Total $65,200 Total $65,200 income Taxes (24%) 2,184 Net income $ 6,916 Assets and costs are proportional to sales. Debt and equity are not. A dividend of $2,700 was paid, and the company wishes to maintain a constant payout ratio. Next year's sales are projected to be $31,320. What is the external financing needed? (Do not round intermediate calculations.) External financing needed
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Franklin Corporation reported net income of $60,000 in Year 1. The company had 80,000 shares of $14 par value common stock outstanding and a market price of $18 per share. What is Franklin's price-earnings ratio? Multiple Choice 2.4 24 14 1.3
Hijab Alisha company has financial data for 2021 as follows: Calculate the firm's earnings available to common shareholders for 2021 and what is the net profit after tax for 2021
Electronics World Inc. paid out $22.4 million intotal common dividends and reported $144.7 million of retained earnings at year-end. Theprior year’s retained earnings were $95.5 million. What was the net income? Assume thatall dividends declared were actually paid.

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