The following information is provided for Jennings Company for a promissory note the company signed in October Net sales 2,550,000 Cost of goods sold 1,100,000 Net income 266,000 Average common shares outstanding 500,000 Stock price 23 1 Calculate earnings per share 2 Calculate price earnings ratio

The Answer is in the image, click to view ...

Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Sep 10, 2024

The following information is provided for Jennings Company for a promissory note the company signed in October Net sales 2,550,000 Cost of goods sold 1,100,000

The following information is provided for Jennings Company for a promissory note the company signed in October

Net sales	2,550,000
Cost of goods sold	1,100,000
Net income	266,000
Average # common shares outstanding	500,000
Stock price	23

1. Calculate earnings per share. 2. Calculate price/earnings ratio.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

Step: 3

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

Process Driven Comprehensive Auditing A New Way To Conduct ISO 9001 2000 Internal Audits

Authors: Paul C. Palmes

1st Edition

0873896416, 978-0873896412

More Books

Students also viewed these Accounting questions

Question

★★★★★

Schlofman Company has the following assets. Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 20,000 Accounts receivable . . . . . . . . . . . . . ....

Answered: 1 week ago

Question

★★★★★

On October 18 of last year, a flood washed away heavy construction equipment owned by Company K. The adjusted tax basis in the equipment was $416,000. On December 8 of last year, Company K received a...

Answered: 1 week ago

Question

★★★★★

People living in the United States and Canada have strong preferences about the gender of their firstborn child; more than two-thirds would prefer a son rather than a daughter. True or False

Answered: 1 week ago

Question

★★★★★

Joe Gaskins and Matthew Perry began operations of their furniture repair shop (New Again Furniture, Inc.) on January 1, 2010. The annual reporting period ends December 31. The trial balance on...

Answered: 1 week ago

Question

★★★★★

10. Which of the following ratios, used in analytical review would not assist the auditor in planning audit? A. B. Gross profit margin Inventory turnover CReceivables collection period D. Earnings...

Answered: 1 week ago

Question

★★★★★

2020 2021 2022 2023 2024 2025 54000000 58,320,0009# 62,985,600 68,024.448 73,466.404 79,343,716 (37,800,000) (40.824,000) (44.089,920) (47.617,114) (51.426,483) (55.540,601) 16,200,000 17,496,000...

Answered: 1 week ago

Question

★★★★★

Ken is 63 years old and unmarried. He retired at age 55 when he sold his business, Understock.com. Though Ken is retired, he is still very active. Ken reported the following financial information...

Answered: 1 week ago

Question

★★★★★

The following accounts were taken from Henry Company's unadjusted trial balance at December 31, 2027: Accounts payable $59,000 Accounts receivable $47,000 Cash $36,000 Common stock $52,000 Cost of...

Answered: 1 week ago

Question

★★★★★

Determine the price of a $1.6 million bond issue under each of the following independent assumptions: 1. Maturity 10 years, interest paid annually, stated rate 8%, effective (market) rate 10%. 2....

Answered: 1 week ago

Question

★★★★★

UMPI's Potatoes produces ready-to-eat mashed potatoes for resale at food stores. UMPI expected to use 0.40 direct labor hours to produce one unit (batch) of product at a cost of $7.50 per hour....

Answered: 1 week ago

Question

★★★★★

Rather than mention the minimum effort he had put into the assignment Jeremy told his manager that he had lost the client because it was the wrong time of the year to ask for new business Jeremy...

Answered: 1 week ago

Question

★★★★★

Evaluate the impact of unions on nurses and physicians.

Answered: 1 week ago

Question

★★★★★

Describe the impact of strikes on patient care.

Answered: 1 week ago

Question

★★★★★

Evaluate long-term care insurance.

Answered: 1 week ago

Previous Question Next Question