Here is the income statement for Teal Mountain Inc. TEAL MOUNTAIN INC. Income Statement For the Year Ended December 31, 2020 Sales revenue $402,900 Cost of goods sold 256,700 Gross profit 146,200 Expenses (including $10,200 interest and $29,600 income taxes) 89,200 Net income $ 57,000 Additional information: 1. Common stock outstanding January 1, 2020, was 30,000 shares, and 39,000 shares were outstanding at December 31, 2020. 2. The market price of Teal Mountain stock was $15 in 2020. 3. Cash dividends of $24,700 were paid, $6,500 of which were to preferred stockholders. FInd the following: A.) Payout Ratio B.) Times interest earned
Here is the income statement for Teal Mountain Inc. TEAL MOUNTAIN INC. Income Statement For the Year Ended December 31, 2020 Sales revenue $402,900 Cost of goods sold 256,700 Gross profit 146,200 Expenses (including $10,200 interest and $29,600 income taxes) 89,200 Net income $ 57,000 Additional information: 1. Common stock outstanding January 1, 2020, was 30,000 shares, and 39,000 shares were outstanding at December 31, 2020. 2. The market price of Teal Mountain stock was $15 in 2020. 3. Cash dividends of $24,700 were paid, $6,500 of which were to preferred stockholders. FInd the following: A.) Payout Ratio B.) Times interest earned
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Here is the income statement for Teal Mountain Inc.
TEAL MOUNTAIN INC.
Income Statement For the Year Ended December 31, 2020 |
||
---|---|---|
Sales revenue
|
$402,900
|
|
Cost of goods sold
|
256,700
|
|
Gross profit
|
146,200
|
|
Expenses (including $10,200 interest and $29,600 income taxes)
|
89,200
|
|
Net income
|
$ 57,000
|
Additional information:
1. | Common stock outstanding January 1, 2020, was 30,000 shares, and 39,000 shares were outstanding at December 31, 2020. | |
2. | The market price of Teal Mountain stock was $15 in 2020. | |
3. | Cash dividends of $24,700 were paid, $6,500 of which were to preferred stockholders. |
FInd the following:
A.) Payout Ratio
B.) Times interest earned
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