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
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
Chapter1: Financial Statements And Business Decisions
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