Ch 17.3 Exercises and Problems Five Measures of Solvency or Profitability The balance sheet for Garcon Inc. at the end of the current fiscal year indicated the following: Bonds payable, 9% $1,400,000 Preferred $5 stock, $50 par $177,000 Common stock, $7 par $334,530.00 Income before income tax was $302,400, and income taxes were $45,750 for the current year. Cash dividends paid on common stock during the current year totaled $64,517. The common stock was selling for $45 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. times 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 Check My Work 2 more Check My Work uses remaining Assignment Score: 0.0% Email Instructor Save and Exit Submit Assignment for Grading Ch 17-3 Exercises and Problems Six Measures of Solvency or Profitability The following data were taken from the financial statements of Gates Inc. for the current fiscal year. Property, plant, and equipment (net) $1,982,000 Liabilities: Current liabilities $197,000 991,000 Note payable, 6%, due in 15 years Total liabilities $1,188,000 Stockholders' equity: Preferred $4 stock, $100 par (no change during year) Common stock, $10 par (no change during year) $1,188,000 1,188,000 Retained earnings: Balance, beginning of year Net income $1,778,000 $1,268,000 510,000 $47,520 146,480 Preferred dividends Common dividends 194,000 Balance, end of year 1,584,000 Total stockholders' equity $3,960,000 Sales $29,615,050 Interest expense $59,460 Assuming that total assets were $4,891,000 at the beginning of the current fiscal year, determine the following. When required, round to one decimal place. a. Ratio of fixed assets to long-term liabilities b. Ratio of liabilities to stockholders' equity c. Asset turnover d. Return on total assets Check My Work 2 more Check My Work uses remaining Assignment Score: 0.0% Email Instructor Save and Exit Submit Assignment for Grading fiscal year. Property, plant, and equipment (net) $1.982,000 Liabilities: Current liabilities $197.000 Note payable, 6%, due in 15 years 991,000 Total liabilities $1,188,000 Stockholders' equity: Preferred $4 stock, $100 par (no change during year) Common stock, $10 par (no change during year) Retained earnings: $1,188,000 1,188,000 Balance, beginning of year Net income $1,778,000 $1,268,000 510,000 $47.520 146,480 Preferred dividends Common dividends 194,000 Balance, end of year 1.584,000 Total stockholders' equity $3,960,000 Sales $29,615,050 Interest expense $59,460 Assuming that total assets were $4,891,000 at the beginning of the current fiscal year, determine the following. When required, round to one decimal place. a. Ratio of fixed assets to long-term liabilities b. Ratio of liabilities to stockholders' equity c. Asset turnover d. Return on total assets e. Return on stockholders' equity f. Return on common stockholders' equity Check My Work 2 more Check My Work uses remaining Previous Next > Assignment Score: 0.0% Email instructor Save and Exit Submit Assignment for Grading Ch 17-3 Exercises and Problems 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, $30 par value (no change $4,500,000 during the year) Preferred $4 stock, $100 par (no change 2,000,000 during the year) The net income was $470,000 and the declared dividends on the common stock were $37,500 for the current year. The market price of the common stock is $18.20 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 Check My Work 2 more Check My Work uses remaining Assignment Score: 0.0% Email Instructor Save and Exit Submit Assignment for Grading