The following data were taken from the financial statements of Gates Inc. for the current fiscal year.Property, plant, and equipment (net)$3,200,000Liabilities:Current liabilities$1,000,000Note payable, 6%, due in 15 years2,000,000$3,000,000Total liabilitiesStockholders' equity:Preferred $10 stock, $100 par (no change during year)$1,000,000Common stock, $10 par (no change during year)2,000,000Retained earnings:<Balance, beginning of year$1,570,000930,000$2,500,000Net income$100,000Preferred dividends400,000500,000Common dividends2,000,000Balance, end of year$5,000,000Total stockholders' equity$18,900,000Sales$120,000Interest expenseTotal stockholders' equity$5,000,000Sales$18,900,000Interest expense$120,000Assuming that long-term investments totaled $3,000,000 throughout the year and that total assets were$7,000,000 at the beginning of the currentfiscal year, determine the following. Round to one decimal place.a. Ratio of fixed assets to long-term liabilitiesb. Ratio of liabilities to stockholders' equityc. Asset turnoverd. Return on total assetse. Return on stockholders' equityf. Return on common stockholders' equityNextPreviousCheck My Work

Prepare comparitive balance sheet for Gates Incorporation:

Answered: The following data were taken from the…

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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Five Measures of Solvency or Profitability The balance sheet for Quigg Inc. at the end of the current fiscal year indicated the following: Bonds payable, 9% $1,800,000 364,000 Preferred $5 stock, $50 par Common stock, $6 par 1,583,400 Income before income tax expense was $664,200, and income taxes were $100,000 for the current year. Cash dividends paid on common stock during the current year totaled $92,365. The common stock was selling for $14 per share at the end of the year. Determine each of the following. Round answers to one decimal place, except for dollar amounts which should be rounded to the nearest whole cent. Use the rounded answers for subsequent requirements, if required. a. Times interest earned ratio times b. Earnings per share on common stock c. Price-earnings ratio d. Dividends per share of common stock e. Dividend yield 00000 %
Current assets Net Fixed assets Total assets Accounts payable and accurals. Short term debt Long term debt Preferred Stock (10,000 shares) Common Stock (50,000 shares) Retained earnings Total common equity Total liabilities and equity $2,000 3,000 $5,000 $900 100 1,100 250 1,300 1,350 $2,650 $5,000 Sunrise's earnings per share last year were $3.20. The common stock sells for $52.00, last year's dividend (D.)was $2.25, and a flotation cost of 10% would be required to sell new common stock. Security analysts are projecting that the common dividend will grow at an annual rate of 8.8%. Sunrise's preferred stock pays a dividend of $2.90 per share, and its preferred stock sells for $25.00 per share. The firm's before-tax of debt is 12%, and its marginal tax rate is 25%. The firm's currently outstanding 10% annual coupon rate, long-term debt sells at par value. The market risk premium is 5.2%, the risk- free rate is 5.5%, and Sunrise's beta is 1.526. The firm's total debt, which is the sum of…
Current assets Net Fixed assets Total assets Accounts payable and accurals. Short term debt Long term debt Preferred Stock (10,000 shares) Common Stock (50,000 shares) Retained earnings Total common equity Total liabilities and equity $2,000 3,000 $5,000 $900 100 1,100 250 1,300 1,350 $2,650 $5,000 Sunrise's earnings per share last year were $3.20. The common stock sells for $52.00, last year's dividend (Do)was $2.25, and a flotation cost of 10% would be required to sell new common stock. Security analysts are projecting that the common dividend will grow at an annual rate of 8.8%. Sunrise's preferred stock pays a dividend of $2.90 per share, and its preferred stock sells for $25.00 per share. The firm's before-tax cost of debt is 12%, and its marginal tax rate is 25%. The firm's currently outstanding 10% annual coupon rate, long-term debt sells at par value. The market risk premium is 5.2%, the risk- free rate is 5.5%, and Sunrise's beta is 1.526. The firm's total debt, which is the…
The following selected data were taken from the financial statements of the Winter Group for the three most recent years of operations: Dec. 31, Year 3 Dec. 31, Year 2 Dec. 31, Year 1 Total assets $3,000,000 $2,700,000 $2,400,000 Notes payable (10% interest) 1,000,000 1,000,000 1,000,000 Common stock 400,000 400,000 400,000 Preferred $6 stock, $100 par 200,000 200,000 200,000 Retained earnings 1,126,000 896,000 600,000 The Year 3 net income was $242,000 and the Year 2 net income was $308,000. No dividends on common stock were declared during the 3 years. a. Determine the return on total assets, the return on stockholders' equity, and the return on common stockholders' equity for Years 2 and 3. If required, round your answers to one decimal place. i cant figure out the stockholders equity or common stockholders equity
Here is the income statement for Splish Brothers Inc. SPLISH BROTHERS INC.Income StatementFor the Year Ended December 31, 2022 Net sales $442,900 Cost of goods sold 258,800 Gross profit 184,100 Expenses (including $16,100 interest and $21,600 income taxes) 74,700 Net income $ 109,400 Additional information: 1. Common stock outstanding January 1, 2022, was 22,500 shares, and 35,800 shares were outstanding at December 31, 2022. (Use a simple average for weighted-average.) 2. The market price of Splish Brothers stock was $15 on December 31, 2022. 3. Cash dividends of $23,600 were declared and paid. Compute the following measures for 2022. (Round earnings per share to 2 decimal places, e.g. 1.83 and all answers to 1 decimal places, e.g. 1.8 or 2.5%) (a) Earnings per share $enter Earnings per share in dollars rounded to 2 decimal places (b) Price-earnings ratio enter a number for Price-earnings ratio in times…
Markus Company’s common stock sold for $1.75 per share at the end of this year. The company paid a common stock dividend of $0.42 per share this year. It also provided the following data excerpts from this year’s financial statements: Ending Balance Beginning Balance Cash $ 27,000 $ 43,800 Accounts receivable $ 48,000 $ 41,300 Inventory $ 45,100 $ 48,000 Current assets $ 120,100 $ 133,100 Total assets $ 312,000 $ 263,800 Current liabilities $ 49,500 $ 34,500 Total liabilities $ 82,000 $ 73,800 Common stock, $1 par value $ 105,000 $ 105,000 Total stockholders’ equity $ 230,000 $ 190,000 Total liabilities and stockholders’ equity $ 312,000 $ 263,800 This Year Sales (all on account) $ 580,000 Cost of goods sold $ 336,400 Gross margin $ 243,600 Net operating income $ 49,500 Interest expense $ 3,000 Net income $ 32,550 7. What are the working capital and current ratio at the end of this year?
Five Measures of Solvency or Profitability The balance sheet for Bearing Industries Inc. at the end of the current fiscal year indicated the following: Bonds payable, 7% $1,400,000 320,000 Preferred $5 stock, $100 par Common stock, $12 par 600,000 Income before income tax was $254,800, and income taxes were $38,800, for the current year. Cash dividends paid on common stock during the current year totaled $30,000. The common stock was selling for $40 per share at the end of the year. Determine each of the following. Round answers to one decimal place, except for dollar amounts which should be rounded to the nearest whole cent. Use the rounded answers for subsequent requirements, if required. a. Times interest earned ratio b. Earnings per share on common stock c. Price-earnings ratio d. Dividends per share of common stock e. Dividend yield $ $ times %
WD Corporation reports the following year-end balance sheet data. The company's debt-to-equity ratio equals: Cash $ 42,000 Current liabilities $ 77,000 Accounts receivable 57,000 Long-term liabilities 28,000 Inventory 62,000 Common stock 102,000 Equipment 147,000 Retained earnings 101,000 Total assets $ 308,000 Total liabilities and equity $ 308,000
Markus Company’s common stock sold for $4.75 per share at the end of this year. The company paid preferred stock dividends totaling $4,400 and a common stock dividend of $1.09 per share this year. It also provided the following data excerpts from this year’s financial statements: Ending Balance Beginning Balance Cash $ 44,000 $ 43,200 Accounts receivable $ 92,000 $ 66,200 Inventory $ 73,300 $ 92,000 Current assets $ 209,300 $ 201,400 Total assets $ 750,000 $ 809,000 Current liabilities $ 84,000 $ 87,000 Total liabilities $ 210,000 $ 189,000 Preferred stock $ 50,000 $ 50,000 Common stock, $1 par value $ 108,000 $ 108,000 Total stockholders’ equity $ 540,000 $ 620,000 Total liabilities and stockholders’ equity $ 750,000 $ 809,000 This Year Sales (all on account) $ 1,080,000…
Balance sheet and income statement data indicate the following: Bonds payable, 8% (due in 15 years) $1,082,526 Preferred 8% stock, $100 par (no change during the year) 200,000 Common stock, $50 par (no change during the year) 1,000,000 Income before income tax for year 414,083 Income tax for year 124,225 Common dividends paid 60,000 Preferred dividends paid 16,000 Based on the data presented, what is the times interest earned ratio (round to two decimal places)? Oa. 2.35 Оb. 3.35 Oc. 4.78 Od. 5.78
Drake Co. summarized select account balances on December 31, 2020, and activity for 2020 in the following table. Retained earnings, beginning balance $60,000 Common stock, $1 par, 100,000 shares authorized, 50,000 shares issued 40,000 Treasury stock, 1,000 shares 10,500 Paid-in capital in excess of par 440,000 Accumulated other comprehensive income 25,000 Investment in stock 100,000 Bonds payable 50,000 Net income for 2020 (not included in retained earnings above) 12,000 Dividends declared and paid during 2020 (not included in retained earnings above) 5,000 Noncontrolling interests 2,500 Based on the information provided, what is total stockholders’ equity on December 31, 2020? Select one: a. $559,000 b. $585,000 c. $564,000 d. $574,000
Earnings per Share, Price-Earnings Ratio, Dividend Yield The following information was taken from the financial statements of Tolbert Inc. for December 31 of the current fiscal year: Common stock, $25 par value (no change during the year) $6,750,000 Preferred $4 stock, $200 par (no change during the year) 8,000,000 The net income was $862,000 and the declared dividends on the common stock were $67,500 for the current year. The market price of the common stock is $22.10 per share. For the common stock, determine (a) the earnings per share, (b) the price-earnings ratio, (c) the dividends per share, and (d) the dividend yield. If required, round your answers to two decimal places. a. Earnings per Share b. Price-Earnings Ratio c. Dividends per Share d. Dividend Yield %

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