The following information pertains to Dallas Company. Assume that all balance sheet amounts represent both average and ending balance figures and that all sales were on credit. Assets Cash and short-term investments $ 40,000Accounts receivable (net) 30,000Inventory 25,000Property, plant, and equipment 280,000Total assets$375,000 Liabilities and Stockholders’ Equity Current liabilities $ 60,000Long-term liabilities 95,000Common stock, $20 par 120,000 Retained earnings 100,000Total liabilities and stockholders’ equity$375,000 Income Statement Sales $90,000Cost of goods sold 45,000Gross margin $45,000Operating expenses 15,000Net income$30,000 Number of shares of common stock 6,000Market price of common stock $20Dividends per share $1.00Cash provided by operations $40,000What is the return on stockholders’ equity? a.13.6% b.7.3% c.40.9% d.20.5%

Ratio analysis used identify the business performance of the company. It is used to measure…

Answered: What is the return on stockholders’…

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What is the return on stockholders’ equity? a. 13.6% b. 7.3% c. 40.9% d. 20.5

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter3: Evaluation Of Financial Performance

Section: Chapter Questions

Problem 19P

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Chasse Building Supply Inc. reported net cash provided by operating activities of $243,000, capital expenditures of $112,900, cash dividends of $35,800, and average maturities of long-term debt over the next 5 years of $122,300. What is Chasses free cash flow and cash flow adequacy ratio? a. $94,300 and 0.77, respectively c. $130,100 and 1.06, respectively b. $94,300 and 0.82, respectively d. $165,900 and 1.36, respectively
The following information pertains to Newman Company. Assume that all balance sheet amounts represent both average and ending balance figures. Assume that all sales were on credit.AssetsCash and short-term investments $ 40,000Accounts receivable (net) 30,000Inventory 25,000Property, plant and equipment 215,000 Total Assets $310,000Liabilities and Stockholders' EquityCurrent liabilities $ 60,000Long-term liabilities 95,000Stockholders' equity-common 155,000 Total Liabilities and stockholders' equity $310,000 Income Statement Sales $ 90,000Cost of goods sold 45,000Gross margin…
The following information pertains to Cachet Company. Assume that allBalance sheet amounts represent both average and ending balance figures.Assume that all sales were on credit.AssetsCash and short-term investments P 40,000Accounts receivable (net) 30,000Inventory 25,000Property, plant and equipment 215,000Total Assets P310, 000Liabilities and Stockholders’ EquityCurrent liabilities P 60,000Long-term liabilities 95,000Stockholders’ equity—common 55,000Total Liabilities and Stockholders’ Equity P310, 000Income StatementSales P 90,000Cost of goods sold 45,000Gross margin 45,000Operating expenses 20,000Net income P 25,000Number of shares of common stock 6,000Market price of common stock P20Dividends per share P1.00What is the price-earnings ratio for this company?A. 6 timesB. 4.2 timesC. 8 times D. 4.8 times Can you please give me a coherent solution for this?
The following information pertains to Dallas Company. Assume that all balance sheet amounts represent both average and ending balance figures and that all sales were on credit. Assets Line Item Description Amount Cash and short-term investments $35,940 Accounts receivable (net) 27,501 Inventory 32,905 Property, plant, and equipment 244,703 Total assets $341,049 Liabilities and Stockholders’ Equity Line Item Description Amount Current liabilities $66,328 Long-term liabilities 99,677 Common stock, $20 par 101,260 Retained earnings 73,784 Total liabilities and stockholders' equity $341,049 Income Statement Line Item Description Amount Sales $88,038 Cost of goods sold (39,617) Gross profit $48,421 Operating expenses (29,760) Net income $18,661 Line Item Description Amount Shares of common stock 5,063 Market price per share of common stock $20 Dividends per share $1.00 Cash provided by operations $40,000 What is the…
The following information pertains to Dallas Company. Assume that all balance sheet amounts represent both average and ending balance figures and that all sales were on credit. Assets Cash and short-term investments $41,706 Accounts receivable (net) 32,359 Inventory 33,536 Property, plant, and equipment 244,092 Total Assets $351,693 Liabilities and Stockholders' Equity Current liabilities $67,811 Long-term liabilities 92,969 Common stock, $20 par 125,380 Retained earnings 65,533 Total Liabilities and stockholders' equity $351,693 Income Statement Sales $85,174 Cost of goods sold 38,328 Gross margin $46,846 Operating expenses 28,378 Net income $18,468 Number of shares of common stock 6,269 Market price of common stock $20 Dividends per share $1.00 Cash provided by operations $40,000 What is the return on stockholders' equity? a.28.2% b.1.1% c.6.9% d.2.9%
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The following information pertains to Unique Company. Assume that all balance sheet amounts represent both average and ending balance figures. Assume that all sales were on credit. Assets Cash and short-term investments $ 40,000 Accounts receivable (net) 25,000 Inventory 20,000 Property, plant and equipment 210,000 Total Assets $295,000 Liabilities and Stockholders' Equity Current liabilities $ 60,000 Long-term liabilities Stockholders' equity-common Total Liabilities and Stockholders' Equity $295,000 85,000 150,000 Income Statement Sales revenue $ 85,000 Cost of goods sold Gross margin Operating expenses 45,000 40,000 20,000 Net income $ 20,000 Number of shares of common stock 6,000 Market price of common stock $20 Dividends per share on common stock $0.90 Cash provided by operations $30,000 What is the accounts receivable turnover for this company? 2.8 times 3 times 3.4 times 2 times
Brock Company's financial information is as follows. Assume that all balance sheet amounts represent both average and ending balance figures and that all sales were on credit. Assets Line Item Description Amount Cash and short-term investments $38,295 Accounts receivable (net) 31,903 Inventory 28,357 Property, plant, and equipment 286,566 Total assets $385,121 Liabilities and Stockholders’ Equity Line Item Description Amount Current liabilities $60,915 Long-term liabilities 88,993 Common stock, $10 par 69,670 Retained earnings 165,543 Total liabilities and stockholders’ equity $385,121 Income Statement Line Item Description Amount Sales $91,601 Cost of goods sold (41,220) Gross profit $50,381 Operating expenses (28,458) Net income $21,923 Number of shares of common stock 6,967 Market price of common stock $33 What is the current ratio? Round your answer to two decimal places.
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bartleby, a Learneo, Inc. business

Cash and short-term investments		$ 40,000
Accounts receivable (net)		30,000
Inventory		25,000
Property, plant, and equipment		280,000
Total assets	$375,000

Current liabilities		$ 60,000
Long-term liabilities		95,000
Common stock, $20 par		120,000
Retained earnings		100,000
Total liabilities and stockholders’ equity	$375,000

Sales		$90,000
Cost of goods sold		45,000
Gross margin		$45,000
Operating expenses		15,000
Net income	$30,000

Number of shares of common stock		6,000
Market price of common stock		$20
Dividends per share		$1.00
Cash provided by operations		$40,000