Chapter18: Accounting Periods And Methods
Section: Chapter Questions
Problem 49P
Related questions
Question
Based on the information above, what is the is the firm's EPS?
Group of answer choices
$7.55
$6.80
$5.84
$6.47
![Great Inc.
The balance sheet and income statement shown below are for Great Inc. Note that the firm has no
amortization charges, it does not lease any assets, none of its debt must be retired during the next 5 years,
and the notes payable will be rolled over.
Balance Sheet (Millions of $)
2016
$ 1,554.0
9,660.0
13.440.0
$24,654.0
17,346.0
$42,000.0
Assets
Cash and securities
Accounts receivable
Inventories
Total current assets
Net plant and equipment
Total assets
Liabilities and Equity
Accounts payable
Notes payable
$ 7,980.0
5,880.0
Accruals
Total current liabilities
Long-term bonds
Total liabilities
4,620.0
$18,480.0
10,920.0
$29,400.0
Common stock
Retained earnings
Total common equity
Total liabilities and equity
3,360.0
9,240.0
$12,600.0
$42.000.0
Income Statement (Millions of $)
Net sales
Operating costs except depr'n
Depreciation
Earnings bef int and taxes (EBIT)
Less interest
2016
$58,800.0
$54,978.0
$ 1,029.0
$ 2,793.0
1.050.0
$ 1,743.0
$ 610.1
$ 1,133.0
Earnings before taxes (EBT)
Тахes
Net income
Other data:
Shares outstanding (millions)
Common dividends
150.00
$ 509.83
Int rate on notes payable & L-T bonds
Federal plus state income tax rate
Year-end stock price
6.25%
35%
$105.75](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fb4bf7d82-81fd-4f13-bd63-f910d4b7f419%2Ff2e004f8-bd13-4a3a-8bfc-5e491083055b%2Fzwvh3tn_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Great Inc.
The balance sheet and income statement shown below are for Great Inc. Note that the firm has no
amortization charges, it does not lease any assets, none of its debt must be retired during the next 5 years,
and the notes payable will be rolled over.
Balance Sheet (Millions of $)
2016
$ 1,554.0
9,660.0
13.440.0
$24,654.0
17,346.0
$42,000.0
Assets
Cash and securities
Accounts receivable
Inventories
Total current assets
Net plant and equipment
Total assets
Liabilities and Equity
Accounts payable
Notes payable
$ 7,980.0
5,880.0
Accruals
Total current liabilities
Long-term bonds
Total liabilities
4,620.0
$18,480.0
10,920.0
$29,400.0
Common stock
Retained earnings
Total common equity
Total liabilities and equity
3,360.0
9,240.0
$12,600.0
$42.000.0
Income Statement (Millions of $)
Net sales
Operating costs except depr'n
Depreciation
Earnings bef int and taxes (EBIT)
Less interest
2016
$58,800.0
$54,978.0
$ 1,029.0
$ 2,793.0
1.050.0
$ 1,743.0
$ 610.1
$ 1,133.0
Earnings before taxes (EBT)
Тахes
Net income
Other data:
Shares outstanding (millions)
Common dividends
150.00
$ 509.83
Int rate on notes payable & L-T bonds
Federal plus state income tax rate
Year-end stock price
6.25%
35%
$105.75
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 3 steps
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
Recommended textbooks for you
![Financial Reporting, Financial Statement Analysis…](https://www.bartleby.com/isbn_cover_images/9781285190907/9781285190907_smallCoverImage.gif)
Financial Reporting, Financial Statement Analysis…
Finance
ISBN:
9781285190907
Author:
James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
Publisher:
Cengage Learning
Principles of Accounting Volume 1
Accounting
ISBN:
9781947172685
Author:
OpenStax
Publisher:
OpenStax College
![Financial Reporting, Financial Statement Analysis…](https://www.bartleby.com/isbn_cover_images/9781285190907/9781285190907_smallCoverImage.gif)
Financial Reporting, Financial Statement Analysis…
Finance
ISBN:
9781285190907
Author:
James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
Publisher:
Cengage Learning
Principles of Accounting Volume 1
Accounting
ISBN:
9781947172685
Author:
OpenStax
Publisher:
OpenStax College
![Cornerstones of Financial Accounting](https://www.bartleby.com/isbn_cover_images/9781337690881/9781337690881_smallCoverImage.gif)
Cornerstones of Financial Accounting
Accounting
ISBN:
9781337690881
Author:
Jay Rich, Jeff Jones
Publisher:
Cengage Learning
![Fundamentals Of Financial Management, Concise Edi…](https://www.bartleby.com/isbn_cover_images/9781337902571/9781337902571_smallCoverImage.jpg)
Fundamentals Of Financial Management, Concise Edi…
Finance
ISBN:
9781337902571
Author:
Eugene F. Brigham, Joel F. Houston
Publisher:
Cengage Learning
![EBK CONTEMPORARY FINANCIAL MANAGEMENT](https://www.bartleby.com/isbn_cover_images/9781337514835/9781337514835_smallCoverImage.jpg)
EBK CONTEMPORARY FINANCIAL MANAGEMENT
Finance
ISBN:
9781337514835
Author:
MOYER
Publisher:
CENGAGE LEARNING - CONSIGNMENT