The balance sheet for Tyde Corporation at the end of the current year indicates the following: Bonds payable, 6% $4,000,000 5% Preferred stock, $100 par 1,000,000 Common stock, $10 par 2,000,000 Income before income taxes was $480,000 and income taxes expense for the current year amounted to $144,000. Cash dividends paid on common stock were $300,000, and the common stock was selling for $22.88 per share at the end of the year. There were no ownership changes during the year. Determine each of the following: (Round earnings per share to 2 decimal places, e.g. 2.25 and all other answers to 0 decimal places, e.g. 5.) (a) Times interest earned times (b) Earnings per share $ per share (c) Price-earnings ratio times
The balance sheet for Tyde Corporation at the end of the current year indicates the following: Bonds payable, 6% $4,000,000 5% Preferred stock, $100 par 1,000,000 Common stock, $10 par 2,000,000 Income before income taxes was $480,000 and income taxes expense for the current year amounted to $144,000. Cash dividends paid on common stock were $300,000, and the common stock was selling for $22.88 per share at the end of the year. There were no ownership changes during the year. Determine each of the following: (Round earnings per share to 2 decimal places, e.g. 2.25 and all other answers to 0 decimal places, e.g. 5.) (a) Times interest earned times (b) Earnings per share $ per share (c) Price-earnings ratio times
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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The balance sheet for Tyde Corporation at the end of the current year indicates the following:
Income before income taxes was $480,000 and income taxes expense for the current year amounted to $144,000. Cash dividends paid on common stock were $300,000, and the common stock was selling for $22.88 per share at the end of the year. There were no ownership changes during the year.
Determine each of the following: (Round earnings per share to 2 decimal places, e.g. 2.25 and all other answers to 0 decimal places, e.g. 5.)
| Bonds payable, 6% | $4,000,000 | |
| 5% |
1,000,000 | |
| Common stock, $10 par | 2,000,000 |
Income before income taxes was $480,000 and income taxes expense for the current year amounted to $144,000. Cash dividends paid on common stock were $300,000, and the common stock was selling for $22.88 per share at the end of the year. There were no ownership changes during the year.
Determine each of the following: (Round earnings per share to 2 decimal places, e.g. 2.25 and all other answers to 0 decimal places, e.g. 5.)
| (a) | Times interest earned |
|
times | ||
| (b) | Earnings per share | $
|
per share | ||
| (c) | Price-earnings ratio |
|
times |
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