Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

1. In 2014, Pringle Company reported earnings per share of $10.50 when its stock was selling for $273. In 2015, its earnings increased by 14

1. In 2014, Pringle Company reported earnings per share of $10.50 when its stock was selling for $273. In 2015, its earnings increased by 14 percent. If all other relationships remain constant, what is the price of the stock? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

New stock price

2. A large retailer reported revenue of $1,673,000. The companys gross profit percentage was 45 percent. What amount of cost of goods sold did the company report?

Cost of goods sold

3. Current assets totaled $49,000 and the current ratio was 1.2. Assume that the following transactions were completed: (1) purchased merchandise for $6,000 on short-term credit and (2) purchased a delivery truck for $20,000, paid $4,000 cash, and signed a two-year interest-bearing note for the balance.

Required:

Compute the cumulative current ratio after each transaction. (Round your final answers to 2 decimal places.)

Transaction Cumulative Current Ratio
(1)
(2)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Fraud In Accounts Payable How To Prevent It

Authors: Mary S. Schaeffer

1st Edition

0470260459, 978-0470260456

More Books

Students also viewed these Accounting questions

Question

4. What are the current trends in computer software platforms?

Answered: 1 week ago