Question Content Area Use this information for Kellman Company to answer the question that follow. The balance sheets at the end of each of the first 2 years of operations indicate the following: Kellman Company Year 2 Year 1 Total current assets $627,500 $589,000 Total investments 69,100 44,200 Total property, plant, and equipment 892,000 608,800 Total current liabilities 107,700 82,600 Total long-term liabilities 282,500 243,500 Preferred 9% stock, $100 par 89,400 89,400 Common stock, $10 par 578,800 578,800 Paid-in capital in excess of par—Common stock 69,600 69,600 Retained earnings 460,600 178,100 Using the balance sheets for Kellman Company, if net income is $105,100 and interest expense is $41,000 for Year 2, and the market price of common shares is $33, what is the price-earnings ratio on common stock for Year 2? (Round intermediate calculation and final answer to two decimal places.)
Question Content Area Use this information for Kellman Company to answer the question that follow. The balance sheets at the end of each of the first 2 years of operations indicate the following: Kellman Company Year 2 Year 1 Total current assets $627,500 $589,000 Total investments 69,100 44,200 Total property, plant, and equipment 892,000 608,800 Total current liabilities 107,700 82,600 Total long-term liabilities 282,500 243,500 Preferred 9% stock, $100 par 89,400 89,400 Common stock, $10 par 578,800 578,800 Paid-in capital in excess of par—Common stock 69,600 69,600 Retained earnings 460,600 178,100 Using the balance sheets for Kellman Company, if net income is $105,100 and interest expense is $41,000 for Year 2, and the market price of common shares is $33, what is the price-earnings ratio on common stock for Year 2? (Round intermediate calculation and final answer to two decimal places.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Use this information for Kellman Company to answer the question that follow.
The
| Kellman Company | ||
| Year 2 | Year 1 | |
| Total current assets | $627,500 | $589,000 |
| Total investments | 69,100 | 44,200 |
| Total property, plant, and equipment | 892,000 | 608,800 |
| Total current liabilities | 107,700 | 82,600 |
| Total long-term liabilities | 282,500 | 243,500 |
| 89,400 | 89,400 | |
| Common stock, $10 par | 578,800 | 578,800 |
| Paid-in capital in excess of par—Common stock | 69,600 | 69,600 |
| 460,600 | 178,100 |
Using the balance sheets for Kellman Company, if net income is $105,100 and interest expense is $41,000 for Year 2, and the market price of common shares is $33, what is the price-earnings ratio on common stock for Year 2? (Round intermediate calculation and final answer to two decimal places.)
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