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The balance sheet for the Big Bunny Corp. showed liabilities and stockholders' equity balances at the end of each year as given below: 2014 2013
The balance sheet for the Big Bunny Corp. showed liabilities and stockholders' equity balances at the end of each year as given below:
2014 | 2013 | |
Current liabilities | $ 750,000 | $ 600,000 |
12% Bonds payable | 1,200,000 | 1,200,000 |
Preferred 10% stock, $100 par | 900,000 | 750,000 |
Common stock, $20 par | 2,250,000 | 1,875,000 |
Additional paid-in capital | 450,000 | 375,000 |
Retained earnings | 750,000 | 540,000 |
Net income | 375,000 | 300,000 |
Market price per share, December 1 | 65 | 60 |
Common stock dividends | 75,000 | 45,000 |
Tax rate for 2014 is 40% |
Based on the data provided, compute the following ratios for 2014:
(1) The rate of earnings on average total stockholder's equity
(2) The number of times bond interest requirements were earned
(3) The earnings per share on common stock
(4) The price-earnings ratio
(5) Debt-to-equity ratio
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