Bonds payable, 6% 6% Preferred stock, P100 par Common stock, P10 par. Income before income taxes was P950,000 and income tax expense for the current year amounted to P285,000. Cash dividends paid on common stock were P200,000, and the common stock was selling for P40 per share at the end of the year. There were no ownership changes during the year. Instructions Determine each of the following: (a) times Interest earned. (b) (c) price-earnings ratio. earnings per share for common stock. P5,000,000 1,000,000 2,000,000

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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2. The balance sheet for Putnam Corporation at the end of the current year include the following:
Page 7 of 9
ManEco-01
FINANCIAL STATEMENT ANALYIS
Bonds payable, 6%
6% Preferred stock, P100 par.
Common stock, P10 par
Income before income taxes was P950,000 and income tax expense for the current year amounted to
P285,000. Cash dividends paid on common stock were P200,000, and the common stock was selling
for P40 per share at the end of the year. There were no ownership changes during the year.
Instructions
Determine each of the following:
(a) times Interest earned.
(b) earnings per share for common stock.
(c)
price-earnings ratio.
P5,000,000
1,000,000
2,000,000
Transcribed Image Text:2. The balance sheet for Putnam Corporation at the end of the current year include the following: Page 7 of 9 ManEco-01 FINANCIAL STATEMENT ANALYIS Bonds payable, 6% 6% Preferred stock, P100 par. Common stock, P10 par Income before income taxes was P950,000 and income tax expense for the current year amounted to P285,000. Cash dividends paid on common stock were P200,000, and the common stock was selling for P40 per share at the end of the year. There were no ownership changes during the year. Instructions Determine each of the following: (a) times Interest earned. (b) earnings per share for common stock. (c) price-earnings ratio. P5,000,000 1,000,000 2,000,000
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