Give true solution for this accounting question The balance sheet for Chaney Resources Inc. at the end of the currentfiscal year indicated the following:Bonds payable, 10% (issued in 1995, due in2015) 2,250,000Preferred $25 stock, $200 parCommon stock, $10 par500,0002,500,000Income before income tax was $625,000, and income taxes were$175,000 for the current year. Cash dividends paid on the commonstock during the current year totaled $125,000. The common stock wasselling for $25 per share at the end of the year.Determine each of the following:a) number of times bond interest charges are earnedb) number of times preferred dividends are earnedc) earnings per share on common stockd) price-earnings ratio

Step 1:- Introduction to the Price-Earnings RatioThe Price-earnings ratio is calculated as market…

Answered: The balance sheet for Chaney Resources…

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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Create a Balance sheet for this information given:
The following data were taken from the financial statements of Hunter Inc. for December 31 of two recent years: Line Item Description CurrentYear PreviousYear Accounts payable $184,000 $162,000 Current maturities of serial bonds payable 240,000 240,000 Serial bonds payable, 10% 1,190,000 1,430,000 Common stock, $1 par value 60,000 60,000 Paid-in capital in excess of par 590,000 600,000 Retained earnings 2,040,000 1,630,000 The income before income tax expense was $400,400 and $350,400 for the current and previous years, respectively. a. Determine the ratio of liabilities to stockholders' equity at the end of each year. Round your answers to one decimal place. Line Item Description Ratio Current year fill in the blank 1 Previous year fill in the blank 2 b. Determine the times interest earned ratio for both years. Round your answers to one decimal place. Line Item Description Ratio Current year fill in the blank 3 Previous year…
The following data were taken from the financial statements of Hunter Inc. for December 31 of two recent years: Current Year Prior Year Accounts payable $175,000 $274,000 Current maturities of serial bonds payable 360,000 360,000 Serial bonds payable, 10% 1,890,000 2,250,000 Common stock, $1 par value 90,000 120,000 Paid-in capital in excess of par 1,070,000 1,070,000 Retained earnings 3,690,000 2,930,000 The income before income tax expense was $832,500 and $728,400 for the current and prior years, respectively. a. Determine the ratio of liabilities to stockholders' equity at the end of each year. Round to one decimal place. Current year fill in the blank 1 Prior year fill in the blank 2 b. Determine the times interest earned ratio for both years. Round to one decimal place. Current year fill in the blank 3 Prior year fill in the blank 4 c. The ratio of liabilities to stockholders' equity have and the times interest…
Selected financial data from the September 30 year-end statements of Green Company are given below: Interest expense on long-term debt P95,000.00 Profit P480,000.00 Total Assets P5,100,000.00 12% interest bearing long term debt* P760,000.00 7% Preference shares, P100 par P900,000.00 Total Stockholders' equity P3,200,000.00 *This is the only interest bearing liability Green Company has. The Company's tax rate is 25%. Total assets at the beginning of the year was P4,800,000 and total stockholders' equity was P2,900,000. There has been no change on the preference shares during the year. Required: A. Compute the return on average total assets. B. Compute the return on average ordinary shareholders' equity.
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The balance sheet and income statement for Cruise Corporation are as follows: Balance Sheet as of December 31, 2020 ASSETS LIABILITIES & EQUITY Cash & marketable securities $2,000 Accounts payable $30,000 Accounts Receivable 35,000 Taxes payable 9,000 Inventory 15,000 Short-term borrowings 12,000 Total current assets $52,000 Total current liabilities $51,000 Net P,P & E $448,000 Long-term debt…
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On January 1, Jim Shorts Corporation issued bonds for $580 million. This bond issue was originally issued at premium. During the same year, $1,500,000 of the bond premium was amortized. On a statement of cash flows prepared using the indirect method, Jim Shorts Corporation should report: O that $1.5 million to be added to net income O An investing activity of $580 million. O A financing activity of $300 million. O that $1.5 million to be deducted from net income
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In the past year, Blossom Corporation reported assets of $230229000. Liabilities reported on the balance sheet on the same date were reported at $69091655. Blossom issued a new note payable for cash during the year. The 8%, 5-year note was issued at a face value of $5008000. What is the company's debt to asset ratio after the refinance? O 29.37% 31.50% 32.18% O 30.01%

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