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calculate the earnings per share (average of 425,000 shares outstanding for the year) for 2020. 1. Earnings per shares- B) calculate the price/earnings ratio (market price of $48 at year-end) 1. Price/ earnings ratio- C)calculate the dividend payout ratio (dividends of $1.25 per common share for the year) for 2020. 1.Dividend payout ratio-

calculate the earnings per share (average of 425,000 shares outstanding for the year) for 2020. 1. Earnings per shares- B) calculate the price/earnings ratio (market price of $48 at year-end) 1. Price/ earnings ratio- C)calculate the dividend payout ratio (dividends of $1.25 per common share for the year) for 2020. 1.Dividend payout ratio-

FINANCIAL ACCOUNTING
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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A) calculate the earnings per share (average of 425,000 shares outstanding for the year) for 2020. 1. Earnings per shares- B) calculate the price/earnings ratio (market price of $48 at year-end) 1. Price/ earnings ratio- C)calculate the dividend payout ratio (dividends of $1.25 per common share for the year) for 2020. 1.Dividend payout ratio-
Sunland Medical Comparative Income Statement and Statement of Retained Earnings For the Year Sales revenue (all on account) Cost of goods sold Gross profit Operating expenses Net operating income Interest expense Net income before taxes Income taxes (30%) Net income Dividends paid Preferred dividends Common dividends Total dividends paid Net income retained Retained earnings, beginning of year Retained earnings, end of year 2020 $10,177,250 5,612,700 4,564,550 2,840,300 1,724,250 300,400 1,423,850 427,155 $996,695 29,500 433,350 462,850 533,845 3,660,310 2019 $9,613,900 5,298,700 4,315,200 2,634,200 1,681,000 308,700 1,372,300 411,690 $960,610 29,550 413,050 442,600 518,010 3,142,300 $4,194,155 $3,660,310
Transcribed Image Text:Sunland Medical Comparative Income Statement and Statement of Retained Earnings For the Year Sales revenue (all on account) Cost of goods sold Gross profit Operating expenses Net operating income Interest expense Net income before taxes Income taxes (30%) Net income Dividends paid Preferred dividends Common dividends Total dividends paid Net income retained Retained earnings, beginning of year Retained earnings, end of year 2020 $10,177,250 5,612,700 4,564,550 2,840,300 1,724,250 300,400 1,423,850 427,155 $996,695 29,500 433,350 462,850 533,845 3,660,310 2019 $9,613,900 5,298,700 4,315,200 2,634,200 1,681,000 308,700 1,372,300 411,690 $960,610 29,550 413,050 442,600 518,010 3,142,300 $4,194,155 $3,660,310
Sunland Medical manufactures hospital beds and other institutional furniture. The company's comparative balance sheet and income statement for 2019 and 2020 follow. Assets Current assets Cash Accounts receivable, net Inventory Other current assets Sunland Medical Comparative Balance Sheet As of December 31 Total current assets Property, plant, & equipment, net Total assets Liabilities and Stockholders' Equity Current liabilities Long-term debt Total liabilities Preferred stock, $5 par value Common stock, $0.25 par value Retained earnings Total stockholders' equity Total liabilities and stockholders' equity 2020 $398,000 1,099,000 746,000 381,350 2,624,350 8,645,005 $11,269,355 $3,209,000 3,702,600 6,911,600 58,950 104,650 4,194,155 4,357,755 $11,269,355 2019 $417,450 776,450 681,000 247,000 2,121,900 8,440,010 $10,561,910 $2,846,050 3,892,700 6,738,750 59,000 103,850 3,660,310 3,823,160 $10,561,910
Transcribed Image Text:Sunland Medical manufactures hospital beds and other institutional furniture. The company's comparative balance sheet and income statement for 2019 and 2020 follow. Assets Current assets Cash Accounts receivable, net Inventory Other current assets Sunland Medical Comparative Balance Sheet As of December 31 Total current assets Property, plant, & equipment, net Total assets Liabilities and Stockholders' Equity Current liabilities Long-term debt Total liabilities Preferred stock, $5 par value Common stock, $0.25 par value Retained earnings Total stockholders' equity Total liabilities and stockholders' equity 2020 $398,000 1,099,000 746,000 381,350 2,624,350 8,645,005 $11,269,355 $3,209,000 3,702,600 6,911,600 58,950 104,650 4,194,155 4,357,755 $11,269,355 2019 $417,450 776,450 681,000 247,000 2,121,900 8,440,010 $10,561,910 $2,846,050 3,892,700 6,738,750 59,000 103,850 3,660,310 3,823,160 $10,561,910
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