The balance sheet for Seuss Company at the end of the current fiscal year indicated the following: Bonds payable, 10% (20-year term) $5,000,000 Preferred 10% stock, $100 par 1,000,000 Common stock, $10 par 2,000,000 Income before income tax was $1,500,000 and income taxes were $200,000 for the current year. Cash dividends paid on common stock during the current year totaled $150,000. The common stock sells for $75 per share at the end of the year. Required: Determine each of the following: Round ratios and percentages to one decimal place, and monetary amounts to the nearest cent. 1. Times interest earned times 2. Earnings per share on common stock 3. Price-earnings ratio 4. Dividends per share of common stock 5. Dividend yield %

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Upda
The balance sheet for Seuss Company at the end of the current fiscal year indicated the following:
Bonds payable, 10% (20-year term)
$5,000,000
Preferred 10% stock, $100 par
1,000,000
Common stock, $10 par
2,000,000
Income before income tax was $1,500,000 and income taxes were $200,000 for the current year. Cash dividends paid on common stock during the current year totaled
$150,000. The common stock sells for $75 per share at the end of the year.
Required:
Determine each of the following:
Round ratios and percentages to one decimal place, and monetary amounts to the nearest cent.
1. Times interest earned
times
2. Earnings per share on common stock
3. Price-earnings ratio
4. Dividends per share of common stock
5. Dividend yield
%
( Previous
Next
Transcribed Image Text:* 司 Upda The balance sheet for Seuss Company at the end of the current fiscal year indicated the following: Bonds payable, 10% (20-year term) $5,000,000 Preferred 10% stock, $100 par 1,000,000 Common stock, $10 par 2,000,000 Income before income tax was $1,500,000 and income taxes were $200,000 for the current year. Cash dividends paid on common stock during the current year totaled $150,000. The common stock sells for $75 per share at the end of the year. Required: Determine each of the following: Round ratios and percentages to one decimal place, and monetary amounts to the nearest cent. 1. Times interest earned times 2. Earnings per share on common stock 3. Price-earnings ratio 4. Dividends per share of common stock 5. Dividend yield % ( Previous Next
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