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. Compute the following measures for 2020. (Round all answers to 2 decimal places, e.g. 1.83 or 2.51%) (a) Earnings per share $enter a dollar amount (b) Price-earnings ratio enter Price-earnings ratio in times times (c) Payout ratio enter percentages %
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. Compute the following measures for 2020. (Round all answers to 2 decimal places, e.g. 1.83 or 2.51%) (a) Earnings per share $enter a dollar amount (b) Price-earnings ratio enter Price-earnings ratio in times times (c) Payout ratio enter percentages %
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
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. |
Compute the following measures for 2020. (Round all answers to 2 decimal places, e.g. 1.83 or 2.51%)
|
(a)
|
Earnings per share
|
$enter a dollar amount
|
|||
|---|---|---|---|---|---|
|
(b)
|
Price-earnings ratio
|
enter Price-earnings ratio in times
|
times | ||
|
(c)
|
Payout ratio
|
enter percentages
|
% | ||
|
(d)
|
Times interest earned
|
enter Times interest earned
|
times |
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