Five Measures of Solvency or Profitability The balance sheet for Garcon Inc. at the end of the current fiscal year indicated the following: Bonds payable, 7% $1,300,000 Preferred $5 stock, $100 par $196,000 Common stock, $8 par $607,600.00 Income before income tax was $191,100, and income taxes were $29,400 for the current year. Cash dividends paid on common stock during the current yea totaled $26,583. The common stock was selling for $14 per share at the end of the year. Determine each of the following. Round answers to one decimal place, except for dollar amounts which should be rounded to the nearest whole cent. Use the rounded answers for subsequent requirements, if required. a. Times interest earned ratio times b. Earnings per share on common stock c. Price-earnings ratio d. Dividends per share of common stock e. Dividend yield
Five Measures of Solvency or Profitability The balance sheet for Garcon Inc. at the end of the current fiscal year indicated the following: Bonds payable, 7% $1,300,000 Preferred $5 stock, $100 par $196,000 Common stock, $8 par $607,600.00 Income before income tax was $191,100, and income taxes were $29,400 for the current year. Cash dividends paid on common stock during the current yea totaled $26,583. The common stock was selling for $14 per share at the end of the year. Determine each of the following. Round answers to one decimal place, except for dollar amounts which should be rounded to the nearest whole cent. Use the rounded answers for subsequent requirements, if required. a. Times interest earned ratio times b. Earnings per share on common stock c. Price-earnings ratio d. Dividends per share of common stock e. Dividend yield
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:Five Measures of Solvency or Profitability
The balance sheet for Garcon Inc. at the end of the current fiscal year indicated the following:
Bonds payable, 7%
$1,300,000
Preferred $5 stock, $100 par
$196,000
Common stock, $8 par
$607,600.00
Income before income tax was $191,100, and income taxes were $29,400 for the current year. Cash dividends paid on common stock during the current yea
totaled $26,583. The common stock was selling for $14 per share at the end of the year.
Determine each of the following. Round answers to one decimal place, except for dollar amounts which should be rounded to the nearest whole cent. Use the
rounded answers for subsequent requirements, if required.
a. Times interest earned ratio
times
b. Earnings per share on common stock
c. Price-earnings ratio
d. Dividends per share of common stock
e.
Dividend yield
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