The balance sheets at the end of each of the first two years of operations indicate the following: Total current assets Total investments Total property, plant, and equipment Total current liabilities Total long-term liabilities Preferred 9% stock, $100 par Common stock, $10 par Paid-in capital in excess of par-common stock Retained earnings 2010 $600,000 60,000 900,000 125,000 350,000 100,000 600,000 60,000 325,000 2009 $560,000 40,000 700,000 80,000 250,000 100,000 600,000 60,000 210,000 If net income is $115,000 and interest expense is $30,000 for 2010, and the market price is $30, What is the price-earnings ratio on common stock for 2010. (round to one decimal point)? a. 17.0 b. 12.1 c. 12.4 d. 15.9 1. On June 30, 2009, Arlington Company issued $1.500.000 of 10-year, 8% bonds, dated June 30, for $1,540,000. Present entries to record the following transactions: Arlington Company (1) Issuance of bonds. (2) Payment of first semiannual interest on December 31, 2009. (3) Amortization by straight-line method of bond premium on December 31, 2009. 2. Prepare the journal entries for the following transactions for Batson Co. (a) Batson Co. purchased 1,200 shares of the total of 100,000 shares of Michael Corp. stock for $20.75 per share plus a $70 commission. (b) Michael's total earnings for the period are $84,000. (C) Michael paid a total of $40,000 in cash dividends. The net income reported on an income statement for the current year was $63,000. Depreciation recorded on Axed assets for the year was $24,000. Balances of the current asset and current liability accounts at the end and beginning of the year are listed below. Prepare the cash flows from operating activities section of a statement of cash flows using the indirect method. End $65,000 70,000 86,000 4,000 Beginning $ 70,000 57.000 102,000 4,500 Cash Accounts receivable (net) Inventories Prepaid expenses Accounts payable (merchandise creditors) Cash dividends payable Salaries payable 51.000 4,500 6,000 58,000 6,500 7,500 4. The following items were taken from the financial statements of Stanton, Inc., over a three-year period: Item Net Sales Cost of Goods Sold Gross Profit 2010 $360,000 225,000 $135.000 2009 $335,000 205.000 $130.000 2008 $300,000 190.000 $120.000 Compute the following for each of the above time periods. a. The amount and percentage change from 2009 to 2010. b. The amount and percentage change from 2008 to 2009