Question
Net sales $400,000 Cost of goods sold 200,000 Gross profit 200,000 Expenses (including $10,000 interest and $20,000 Income taxes) 70,000 Net Income $130,000 Additional
Net sales $400,000 Cost of goods sold 200,000 Gross profit 200,000 Expenses (including $10,000 interest and $20,000 Income taxes) 70,000 Net Income $130,000 Additional information: 1. Common stock outstanding January 1, 2025, was 20,000 shares, and 35,000 shares were outstanding at December 31, 2025. (Use a simple average for weighted average.) 2. The market price of Blossom stock was $12 on December 31, 2025. 3. Cash dividends of $19,000 were declared and paid. Compute the following measures for 2025. (Round Earnings per share to 2 decimal places, eg. 1.83 and all other answers to 1 decimal place, e.g. 1.8 or 2.5%) a. Earnings per share 4.73 b. Price-earnings ratio 2.5 times C. Payout ratio 14.6 % d. Times interest earned 4.3 times
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Advanced Accounting
Authors: Gail Fayerman
1st Canadian Edition
9781118774113, 1118774116, 111803791X, 978-1118037911
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