Question
Five Measures ofSolvencyorProfitability im having trouble with this one The balance sheet for Garcon Inc. at the end of the current fiscal year indicated the
Five Measures ofSolvencyorProfitability
im having trouble with this one The balance sheet for Garcon Inc. at the end of the current fiscal year indicated the following:
Bonds payable, 6%$1,500,000Preferred $5 stock, $50 par$182,000Common stock, $12 par$163,800.00
Income before income tax was $342,000, and income taxes were $50,800 for the current year. Cash dividends paid on common stock during the current year totaled $43,680. The common stock was selling for $160 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.
a.Times interest earned ratio]
b.Earnings per share on common stock
c.Price-earnings ratio
d.Dividends per shareof common stock
e.Dividend yield
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