Problem 4 EINANCIAL RATIOS. The Format Company reports the following balance sheet data: Current liabilities $280.000 Bonds payable, 16% $120,000 Preferred stock, 14%, $100 par value S200,000 Common stock $25 par value, 16.800 shares $420,000 Paid-in capital on common stock $240,000 Retained earnings S180.000 Income before taxes is $160,000. The tax rate is 40 percent. Common stockholders' equity in the previous year was $800,000. The market price per share of common stock is $35. Requirement: Calculate the following: a. Net income; b. Preferred dividends; c. Return on common stock;
Problem 4 EINANCIAL RATIOS. The Format Company reports the following balance sheet data: Current liabilities $280.000 Bonds payable, 16% $120,000 Preferred stock, 14%, $100 par value S200,000 Common stock $25 par value, 16.800 shares $420,000 Paid-in capital on common stock $240,000 Retained earnings S180.000 Income before taxes is $160,000. The tax rate is 40 percent. Common stockholders' equity in the previous year was $800,000. The market price per share of common stock is $35. Requirement: Calculate the following: a. Net income; b. Preferred dividends; c. Return on common stock;
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter15: Financial Statement Analysis
Section: Chapter Questions
Problem 55E: Rebert Inc. showed the following balances for last year: Reberts net income for last year was...
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