Calculate the earnings per share (average of 418,000 shares outstanding for the year) for 2020. (Round answer to 2 decimal places, e.g. 2.55.) earnings per share $ 2.31 per share Calculate the price/earnings ratio (market price of $48 at year-end) for 2020. (Round answer to 1 decimal place, e.g. 2.5.) Price/earnings ratio 20.8 Calculate the dividend payout ratio (dividends of $1.25 per common share for the year) for 2020. (Round answer to 1 decimal place, e.g. 2.5.) Dividend payout ratio ? %

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Calculate the earnings per share (average of 418,000 shares outstanding for the year) for 2020. (Round answer to 2 decimal places, e.g. 2.55.)

earnings per share $ 2.31 per share

Calculate the price/earnings ratio (market price of $48 at year-end) for 2020. (Round answer to 1 decimal place, e.g. 2.5.)

Price/earnings ratio 20.8

Calculate the dividend payout ratio (dividends of $1.25 per common share for the year) for 2020. (Round answer to 1 decimal place, e.g. 2.5.)

Dividend payout ratio ? %

 

Sheridan Medical
Comparative Income Statement and Statement of Retained Earnings
For the Year
2020
2019
Sales revenue (all on account)
$10,177,250
$9,614,000
Cost of goods sold
5,612,650
5,298,700
Gross profit
4,564,600
4,315,300
Operating expenses
2,840,250
2,634,150
Net operating income
1,724,350
1,681,150
Interest expense
300,300
308,650
Net income before taxes
1,424,050
1,372,500
Income taxes (30%)
427,215
411,750
Net income
$996,835
$960,750
Dividends paid
Preferred dividends
29,450
29,550
Common dividends
433,450
413,100
Total dividends paid
462,900
442,650
Net income retained
533,935
518,100
Retained earnings, beginning of year
3,660,400
3,142,300
Retained earnings, end of year
$4,194,335
$3,660,400
Transcribed Image Text:Sheridan Medical Comparative Income Statement and Statement of Retained Earnings For the Year 2020 2019 Sales revenue (all on account) $10,177,250 $9,614,000 Cost of goods sold 5,612,650 5,298,700 Gross profit 4,564,600 4,315,300 Operating expenses 2,840,250 2,634,150 Net operating income 1,724,350 1,681,150 Interest expense 300,300 308,650 Net income before taxes 1,424,050 1,372,500 Income taxes (30%) 427,215 411,750 Net income $996,835 $960,750 Dividends paid Preferred dividends 29,450 29,550 Common dividends 433,450 413,100 Total dividends paid 462,900 442,650 Net income retained 533,935 518,100 Retained earnings, beginning of year 3,660,400 3,142,300 Retained earnings, end of year $4,194,335 $3,660,400
Sheridan Medical manufactures hospital beds and other institutional furniture. The company's comparative balance sheet and
income statement for 2019 and 2020 follow.
Sheridan Medical
Comparative Balance Sheet
As of December 31
2020
2019
Assets
Current assets
Cash
$391,000
$417,400
Accounts receivable, net
1,018,000
776,500
Inventory
720,000
681,050
Other current assets
381,350
247,050
Total current assets
2,510,350
2,122,000
Property, plant, & equipment, net
8,717,185
8,440,050
Total assets
$11,227,535
$10,562,050
Liabilities and Stockholders' Equity
Current liabilities
$3,167,000
$2,846,100
Long-term debt
3,702,600
3,892,700
Total liabilities
6,869,600
6,738,800
Preferred stock, $5 par value
58,950
58,950
Common stock, $0.25 par value
104,650
103,900
Retained earnings
4,194,335
3,660,400
Total stockholders' equity
4,357,935
3,823,250
Total liabilities and stockholders' equity
$11,227,535
$10,562,050
Transcribed Image Text:Sheridan Medical manufactures hospital beds and other institutional furniture. The company's comparative balance sheet and income statement for 2019 and 2020 follow. Sheridan Medical Comparative Balance Sheet As of December 31 2020 2019 Assets Current assets Cash $391,000 $417,400 Accounts receivable, net 1,018,000 776,500 Inventory 720,000 681,050 Other current assets 381,350 247,050 Total current assets 2,510,350 2,122,000 Property, plant, & equipment, net 8,717,185 8,440,050 Total assets $11,227,535 $10,562,050 Liabilities and Stockholders' Equity Current liabilities $3,167,000 $2,846,100 Long-term debt 3,702,600 3,892,700 Total liabilities 6,869,600 6,738,800 Preferred stock, $5 par value 58,950 58,950 Common stock, $0.25 par value 104,650 103,900 Retained earnings 4,194,335 3,660,400 Total stockholders' equity 4,357,935 3,823,250 Total liabilities and stockholders' equity $11,227,535 $10,562,050
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