The following was provided by Elephant Company as of December 31, Year 2: Net income $ 528,000 Preferred stock, (20,000 shares at $10 par, 4%) $ 200,000 Common stock, (220,000 shares at $1 par) $ 220,000 Paid-in capital in excess of par-common $ 2,475,500 Retained earnings $ 3,824,500 On the most recent trading date, Elephant company common shares sold at $36 and the preferred shares sold at $14. The following information on industry averages is provided: Earnings per share $2.06 Price-earnings ratio 13.2:1 Required: 1) Calculate and compare Elephant Company ratios with the industry averages shown above. (Round your answer to two decimal places.)
The following was provided by Elephant Company as of December 31, Year 2: Net income $ 528,000 Preferred stock, (20,000 shares at $10 par, 4%) $ 200,000 Common stock, (220,000 shares at $1 par) $ 220,000 Paid-in capital in excess of par-common $ 2,475,500 Retained earnings $ 3,824,500 On the most recent trading date, Elephant company common shares sold at $36 and the preferred shares sold at $14. The following information on industry averages is provided: Earnings per share $2.06 Price-earnings ratio 13.2:1 Required: 1) Calculate and compare Elephant Company ratios with the industry averages shown above. (Round your answer to two decimal places.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Practice Pack
The following was provided by Elephant Company as of December 31, Year 2:
Net income $ 528,000
Preferred stock, (20,000 shares at $10 par, 4%) $ 200,000
Common stock, (220,000 shares at $1 par) $ 220,000
Paid-in capital in excess of par-common $ 2,475,500
On the most recent trading date, Elephant company common shares sold at $36 and the
The following information on industry averages is provided:
- Earnings per share $2.06
- Price-earnings ratio 13.2:1
Required:
1) Calculate and compare Elephant Company ratios with the industry averages shown above. (Round your answer to two decimal places.)
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Includes step-by-step video
Trending now
This is a popular solution!
Learn your way
Includes step-by-step video
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education