Bianchi Company reported these figures for 2018 and 2017: 2018 2017 Income Statement-partial: $ 34,380 $ 18,000 Net Income Dec. 31, 2018 Dec. 31, 2017 Balance Sheet-partial: $ 285,000 $ 280,000 Total Assets Paid-In Capital: $ 108,000 $ 108,000 Preferred Stock-11%, $9 Par Value; 60,000 shares authorized, 12,000 shares issued and outstanding 100,000 Common Stock-$2 Par Value; 60,000 shares authorized, 50,000 shares issued and outstanding 100,000 Paid-In Capital in Excess of Par-Common 14,000 14,000 Retained Earnings 60,500 38,000 Total Stockholders' Equity $ 282,500 $ 260,000 Requirements 1. Compute Bianchi Company's earnings per share for 2018. Assume the company paid the minimum preferred dividend during 2018. Round to the nearest cent. 2. Compute Bianchi Company's price/earnings ratio for 2018. Assume the company's market price per share of common stock is $9. Round to two decimals. 3. Compute Bianchi Company's rate of return on common stockholders' equity for 2018. Assume the company paid the minimum preferred dividend during 2018. Round to the nearest whole percent.
Bianchi Company reported these figures for 2018 and 2017: 2018 2017 Income Statement-partial: $ 34,380 $ 18,000 Net Income Dec. 31, 2018 Dec. 31, 2017 Balance Sheet-partial: $ 285,000 $ 280,000 Total Assets Paid-In Capital: $ 108,000 $ 108,000 Preferred Stock-11%, $9 Par Value; 60,000 shares authorized, 12,000 shares issued and outstanding 100,000 Common Stock-$2 Par Value; 60,000 shares authorized, 50,000 shares issued and outstanding 100,000 Paid-In Capital in Excess of Par-Common 14,000 14,000 Retained Earnings 60,500 38,000 Total Stockholders' Equity $ 282,500 $ 260,000 Requirements 1. Compute Bianchi Company's earnings per share for 2018. Assume the company paid the minimum preferred dividend during 2018. Round to the nearest cent. 2. Compute Bianchi Company's price/earnings ratio for 2018. Assume the company's market price per share of common stock is $9. Round to two decimals. 3. Compute Bianchi Company's rate of return on common stockholders' equity for 2018. Assume the company paid the minimum preferred dividend during 2018. Round to the nearest whole percent.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question 45
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P13-45A Computing earnings per share, price/earnings ratio, and rate of
return on common stockholders' equity
Bianchi Company reported these figures for 2018 and 2017:
2018
2017
Income Statement-partial:
$ 34,380
$ 18,000
Net Income
Dec. 31, 2018
Dec. 31, 2017
Balance Sheet-partial:
$ 285,000
$ 280,000
Total Assets
Paid-In Capital:
$ 108,000
$ 108,000
Preferred Stock-11%, $9 Par Value; 60,000 shares
authorized, 12,000 shares issued and outstanding
100,000
Common Stock-$2 Par Value; 60,000 shares
authorized, 50,000 shares issued and outstanding
100,000
Paid-In Capital in Excess of Par-Common
14,000
14,000
Retained Earnings
60,500
38,000
Total Stockholders' Equity
$ 282,500
$ 260,000
Requirements
1. Compute Bianchi Company's earnings per share for 2018. Assume the company
paid the minimum preferred dividend during 2018. Round to the nearest cent.
2. Compute Bianchi Company's price/earnings ratio for 2018. Assume the company's
market price per share of common stock is $9. Round to two decimals.
3. Compute Bianchi Company's rate of return on common stockholders' equity for
2018. Assume the company paid the minimum preferred dividend during 2018.
Round to the nearest whole percent.
> Problems Group B
P13-46B Organizing a corporation and issuing stock
Jimmy and Randy are opening a comic store. There are no competing comic stores in
the area. They must decide how to organize the business. They anticipate profits of
$550.000 the first vear with the
ahili
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