Solomon Company's income statement information follows:Net salesIncome before interest and taxesNet income after taxesInterest expenseStockholders' equity, December 31 (Year 1: $197,000)Common stock, December 31The average number of shares outstanding was 7,700 for Year 3 and 7,000 for Year 2.RequiredCompute the following ratios for Solomon for Year 3 and Year 2.a. Number of times interest was earned.Note: Round your answer to 2 decimal places.a. Times interest earnedb. Earnings per sharec. Price-earnings ratiod. Return on average equitye. Net marginYear 3b. Earnings per share based on the average number of shares outstanding.Note: Round your answer to 2 decimal places.c. Price-earnings ratio (market prices: Year 3, $64 per share; Year 2, $73 per share).Note: Round your answer to 2 decimal places.d. Return on average equity.Note: Round your percentage answer to 2 decimal places (for example, 0.2345 should be entered as 23.45).e. Net margin.Note: Round your percentage answer to 2 decimal places (for example, 0.2345 should be entered as 23.45).timesYear 3$ 415,000112,00055,3209,150times%%Year 2310,000192,500timesYear 2$ 267,00084,00062,0007,450240,000175,000times%%

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Answered: Solomon Company's income statement…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Profitability Ratios The following selected data were taken from the financial statements of Vidahill Inc. for December 31, 20Y7, 20Y6, and 20Y5: December 31 20Y7 20Y6 20Y5 Total assets $309,000 $278,000 $247,000 Notes payable (8% interest) 100,000 100,000 100,000 Common stock 40,000 40,000 40,000 Preferred 3% stock, $100 par 20,000 20,000 20,000 (no change during year) Retained earnings 114,945 75,650 60,000 The 20Y7 net income was $39,895, and the 20Y6 net income was $16,250. No dividends on common stock were declared between 20Y5 and 20Y7. Preferred dividends were declared and paid in full in 20Y6 and 20Y7. a. Determine the return on total assets, the return on stockholders' equity, and the return on common stockholders’ equity for the years 20Y6 and 20Y7. Round percentages to one decimal place. 20Y7 20Y6 Return on total assets fill in the blank 1 % fill in the blank 2 % Return on stockholders’ equity fill…
A company reports the following: Net income $233,000 Preferred dividends $13,000 Shares of common stock outstanding 40,000 Market price per share of common stock $43.45 a. Determine the company's earnings per share on common stock. Round your answer to the nearest cent. Use the rounded answer of requirement a for subsequent requirement, if required. b. Determine the company's price-earnings ratio. Round to one decimal place.
Using the information for Blue Northern Clothing Company presented in the table below, determine the following: Price-earnings ratio. The number of shares bought and sold on this trading day. Amount of income per share paid to a stockholder in the last 12 months. Additional Resources Year-to-Date % Change 1.92% EPS $1.79 52-Week Hi $58.59 PE Ratio 17.92 52-Week Lo $21.21 Volume 2,430,000 Dividend $0.83 Close Price $32.07 Yield Percentage 2.59% Net Change 1.74 1. Price-earnings ratio: 2. Number of shares: 3. Amount of income:
A company reported the following: Net income $423,790 Preferred dividends $31,390 Shares of common stock outstanding 36,000 Market price per share of common stock $184.43 Calculate the company's price-earnings ratio. Round your answer to two decimal places.fill in the blank 1
A company reports earnings per share on common stock of $2.00 when the market price of per share of common stock is $50.000. What is the company’s price-earnings ratio?
Current Position Analysis The following data were taken from the balance sheet of Albertini Company at the end of two recent fiscal years: Current Year Previous Year Current assets: Cash $620,200 $495,600 Marketable securities 718,100 557,600 Accounts and notes receivable (net) 293,700 185,800 Inventories 314,200 179,900 Prepaid expenses 161,800 115,100 Total current assets $2,108,000 $1,534,000 Current liabilities: Accounts and notes payable (short-term) $394,400 $413,000 Accrued liabilities 285,600 177,000 Total current liabilities $680,000 $590,000 a. Determine for each year (1) the working capital, (2) the current ratio, and (3) the quick ratio. Round ratios to one decimal place. Current Year Previous Year 1. Working capital $fill in the blank 1 $fill in the blank 2 2. Current ratio fill in the blank 3 fill in the blank 4…
Help with financial statements please? A. Prepare a multiple-step income statement for the year ended December 31, Year 1, concluding with earnings per share. In computing earnings per share, assume that the average number of common shares outstanding was 100,000 and preferred dividends were $100,000. Enter all amounts as positive numbers EXCEPT in the Other income and expenses. In that section only, enter amounts that represent other expenses as negative numbers using a minus sign. (Round earnings per share to the nearest cent.) B. Prepare a retained earnings statement for the year ended December 31, Year 1.* C. Prepare a balance sheet in report form as of December 31, Year 1.* Income Statement data: Advertising expense $150,000 Cost of merchandise sold 3,700,000 Delivery expense 30,000 Depreciation expense-office buildings and equipment 30,000 Depreciation expense-store buildings and equipment 100,000 Dividend revenue 4,500…
Required: 1. Present component percentages for Year 2 only. (Input all amounts as positive values. Round the final answers to the nearest whole percent. Percentages may not add exactly due to rounding.) Statement of earnings: Sales revenue Cost of sales Gross margin Operating expenses and interest expense Earnings before income taxes Income tax expense Net earnings Statement of financial position: Cash Accounts receivable (net) Inventory Property, plant, and equipment (net) Total assets Current liabilities Long-term liabilities Common shares Retained earnings Total liabilities and shareholders' equity Component Percentages Year 2 % do % 0 % de % 0 % % 0 % do do do do do % % % % 0 % % % % % 0 %
Profitability Ratios The following selected data were taken from the financial statements of Vidahill Inc. for December 31, 20Y7, 20Y6, and 20Y5: December 31 20Y7 20Y6 20Y5 Total assets $250,000 $225,000 $200,000 Notes payable (8% interest) 80,000 80,000 80,000 Common stock 32,000 32,000 32,000 Preferred 7% stock, $100 par 16,000 16,000 16,000 (no change during year) Retained earnings 88,510 64,380 48,000 The 20Y7 net income was $25,250, and the 20Y6 net income was $17,500. No dividends on common stock were declared between 20Y5 and 20Y7. Preferred dividends were declared and paid in full in 20Y6 and 20Y7. a. Determine the return on total assets, the return on stockholders' equity, and the return on common stockholders’ equity for the years 20Y6 and 20Y7. When required, round to one decimal place. 20Y7 20Y6 Return on total assets fill in the blank 1 % fill in the blank 2 % Return on stockholders’ equity fill…
Earnings per Share and Price-Earnings Ratio A company reports the following: Net income $1,340,000 Preferred dividends $76,000 Shares of common stock outstanding 80,000 Market price per share of common stock $132.72 a. Determine the company's earnings per share on common stock. Round your answer to the nearest cent. Use the rounded answer of requirement a for subsequent requirement, if required.$fill in the blank 1 b. Determine the company's price-earnings ratio. Round to one decimal place.fill in the blank 2
Questions: 1. Price-earnings ratio 2. Dividend payout ratio 3. Dividend yield ratio
hr.3

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