Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Second Chance Company The balance sheet taken from the 2020 10-K of Second Chance Company is provided below. December 31 Assets: 2020 2019 Current Assets:

image text in transcribedimage text in transcribed

Second Chance Company The balance sheet taken from the 2020 10-K of Second Chance Company is provided below. December 31 Assets: 2020 2019 Current Assets: Cash $ 122,200 $108,000 Accounts Receivable 45,000 35,000 Inventory 17,000 14,000 Other Current Assets 13,000 11.000 Total Current Assets 197,200 168,000 Long-term Assets: Property, Plant & Equipment, net 1,489,800 50,000 Intangible Assets 422.500 450.000 Total Assets $2.109.500 $668.000 Liabilities and Stockholders' Equity Current Liabilities: Accounts Payable $ 11,000 $ 9,000 Interest Payable 1,000 1,000 Current Portion of Long-Term Debt 30,000 0 Income Tax Payable 37,000 46,000 Total Current Liabilities $ 79,000 56,000 Long-term Liabilities: Notes Payable 492,500 30.000 Total Liabilities 571,500 86,000 Stockholders' Equity Common Stock 120,000 70,000 Additional Paid-in Capital 1,308,000 372,000 Retained Earnings 185,000 140,000 Treasury Stock (75.000) 0 Total Stockholders' Equity 1.538.000 582.000 Total Liabilities and Stockholders' Equity $2.109.500 $668.000 Second Chance Company's income statements are available below. At December 31, 2017, Second Chance Company's total assets and total stockholders' equity were $650.000 and $575,000, respectively. For the Years Ended 2020 2019 Net Sales $950,000 $775,000 Cost of Goods Sold 480.000 400,000 Gross Profit 470,000 375,000 Operating Expenses 340,000 277.000 Income from Operations 130,000 98,000 Interest Expense 52.000 3.500 Income before Taxes 78,000 94,500 Income Taxes 30.000 37.000 Net Income $ 48,000 $ 57.500 Net Income $48,000 $57,500 Dividends Paid $ 3.000 $ 1.750 Average number of shares outstanding 45,625 35,000 Closing market price per share $ 24.00 $ 18.00 Second Chance Company had no preferred stock throughout the period 2017 hrough 2020. At December 31, 2017 Second Chance Company's total stockholders' equity was $575,000. At December 31, 2017 Second Chance Company's total assets and total stockholders' equity were $650,000 and $575,000, respectively. Refer to the balance sheet for Second Chance Company. Calculate Second Chance Company's stockholder ratios for 2020 and 2019, including Earnings per Share Retum on Common Equity, Dividend Yield Dividend Payout. Total Payout, and Stock Repurchase Payout Ratios. A) EARNINGS PER SHARE 2020 2019 A) B) 4.53 0.27 6.25 1.05 A) B) C) D) 1.64 9.94 0.28 3.04 D) C) DIVIDEND YIELD 2020 2019 1.05 4.53 0.27 6.25 A) B) C) 1.64 0.28 9.94 3.04 D) D) DIVIDEND PAYOUT 2020 2019 A) B) B) 1.05 4.53 6.25 0.27 1.64 9.94 3.04 0.28 D) D)

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

Investing Amid Low Expected Returns Making The Most When Markets Offer The Least

Authors: Antti Ilmanen

1st Edition

1119860199, 978-1119860198

More Books

Students also viewed these Accounting questions