The balance sheets of Burrows Company at the end of each of the first two years of operations indicate the following: 2017 2016. Total current assets P600,000 P560,000 Total property, plant and equipment 960,000 740,000 Total current liabilities 150,000 80,000 Total long-term liabilities 350,000 250,000 Preferred 9% stock, P100 par 100,000 100,000 Common stock, P10 par 600,000 600,000 Paid-in capital in excess of par-common stock 60,000 60,000 Retained earnings 300,000 210,000 The net income is P150,000 and interest expense is P30,000 for 2017. And the current market price of the share is P22.20 in 2017, and P21.25 in 2016. What is the earning per share ratio for 2017?
The balance sheets of Burrows Company at the end of each of the first two years of operations indicate the following: 2017 2016. Total current assets P600,000 P560,000 Total property, plant and equipment 960,000 740,000 Total current liabilities 150,000 80,000 Total long-term liabilities 350,000 250,000 Preferred 9% stock, P100 par 100,000 100,000 Common stock, P10 par 600,000 600,000 Paid-in capital in excess of par-common stock 60,000 60,000 Retained earnings 300,000 210,000 The net income is P150,000 and interest expense is P30,000 for 2017. And the current market price of the share is P22.20 in 2017, and P21.25 in 2016. What is the earning per share ratio for 2017?
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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![The balance sheets of Burrows Company at the end of each of the first two years of operations indicate the following:
2017
2016.
Total current assets
P600,000
P560,000
Total property, plant and equipment
960,000
740,000
Total current liabilities
150,000
80,000
Total long-term liabilities
350,000
250,000
Preferred 9% stock, P100 par
100,000
100,000
Common stock, P10 par
600,000
600,000
Paid-in capital in excess of par-common stock
60,000
60,000
Retained earnings
300,000
210,000
The net income is P150,000 and interest expense is P30,000 for 2017. And the current
market price of the share is P22.20 in 2017, and P21.25 in 2016.
What is the earning per share ratio for 2017?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F2c0540e5-a03f-4fd3-b1bf-fddc694d81c7%2Ffa9ed7b3-e736-4d00-81f7-263acfbd8001%2Fozde3ua_processed.jpeg&w=3840&q=75)
Transcribed Image Text:The balance sheets of Burrows Company at the end of each of the first two years of operations indicate the following:
2017
2016.
Total current assets
P600,000
P560,000
Total property, plant and equipment
960,000
740,000
Total current liabilities
150,000
80,000
Total long-term liabilities
350,000
250,000
Preferred 9% stock, P100 par
100,000
100,000
Common stock, P10 par
600,000
600,000
Paid-in capital in excess of par-common stock
60,000
60,000
Retained earnings
300,000
210,000
The net income is P150,000 and interest expense is P30,000 for 2017. And the current
market price of the share is P22.20 in 2017, and P21.25 in 2016.
What is the earning per share ratio for 2017?
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