The balance sheets at the end of each of the first two years of operations indicate the following: 2016 2015 Total current assets $600,000 $560,000 Total investments $60,000 $40,000 Total property, plant, and equipment $900,000 $700,000 Total current liabilities $125,000 $80,000 Total long-term liabilities $350,000 $250,000 Preferred 9% stock, $100 par $100,000 $100,000 Common stock, $10 par $600,000 $600,000 Paid-in capital in excess of par-Common stock $60,000 $60,000 Retained earnings $325,000 $210,000 Based on the above information, if net income is $130,000 and interest expense is $40,000 for 2016, and the market price is $40, what is the price-earnings ratio on common stock? A. 19.8 B. 18.4 C. 17.3 D. 14.9

The balance sheets at the end of each of the first two years of operations indicate the following: 2016 2015 Total current assets $600,000 $560,000 Total investments $60,000 $40,000 Total property, plant, and equipment $900,000 $700,000 Total current liabilities $125,000 $80,000 Total long-term liabilities $350,000 $250,000 Preferred 9% stock, $100 par $100,000 $100,000 Common stock, $10 par $600,000 $600,000 Paid-in capital in excess of par-Common stock $60,000 $60,000 Retained earnings $325,000 $210,000 Based on the above information, if net income is $130,000 and interest expense is $40,000 for 2016, and the market price is $40, what is the price-earnings ratio on common stock? A. 19.8 B. 18.4 C. 17.3 D. 14.9

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter5: The Income Statement And The Statement Of Cash Flows

Section: Chapter Questions

Problem 11P: Net Income and Comprehensive Income At the beginning of 2019, JR Companys shareholders equity was as...

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