Accel’s Companies, a home improvement store chain, reported the following summarized figures:

Requirements
1. Compute earnings per share (EPS) for 2024 for Accel’s. Round to the nearest cent.
2. Compute Accel’s Companies’ price/earnings ratio for 2024. The market price per share of Accel’s stock is $12.50.
3. What do these results mean when evaluating Accel’s Companies’ profitability?

Transcribed Image Text:

ACCEL'S COMPANIES Income Statement Years Ended May 31, 2024 and 2023 Net Sales Revenue Cost of Goods Sold Interest Expense All Other Expenses Net Income 2024 $ 40,600 28,400 600 4,300 $ 7,300 2023 $ 40,500 30,600 570 8,200 $ 1,130