Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The following information pertains to Diane Company. Assume that all balance sheet amounts represent both average and ending balance figures and that all sales were

The following information pertains to Diane Company. Assume that all balance sheet amounts represent both average and ending balance figures and that all sales were on credit. Assets Cash and short-term investments $ 30,000 Accounts receivable (net) 20,000 Inventory 15,000 Property, plant, and equipment 185,000 Total assets $250,000 Liabilities and Stockholders Equity Current liabilities $ 45,000 Long-term liabilities 70,000 Stockholders equityCommon 135,000 Total liabilities and stockholders equity $250,000 Income Statement Sales $ 85,000 Cost of goods sold 45,000 Gross margin $ 40,000 Operating expenses (15,000) Interest expense (5,000) Net income $ 20,000 Number of shares of common stock outstanding 6,000 Market price of common stock $20 Total dividends paid $9,000 Cash provided by operations $30,000 Determine the following (and remember to show all work): ratio of sales to total assets rate earned on total assets dividends per common share dividend yield rate earned on common stockholders equity price earnings ratio

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

The Effect Of The Internal Auditing On Financial Performance

Authors: Shakir Al Ghalayini, Mohammed A. Keshta, Thabet M. Hassan

1st Edition

3656943052, 978-3656943051

More Books

Students also viewed these Accounting questions