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The income statement, statement of retained earnings, and balance sheet for Somerville Company are as follows: Somerville Company Income Statement For the Year Ended December
The income statement, statement of retained earnings, and balance sheet for Somerville Company are as follows:
Somerville Company
Income Statement
For the Year Ended December X
Line Item Description Amount Percent
Net sales $
Less: Cost of goods sold
Gross margin $
Less: Operating expenses
Operating income $
Less: Interest expense
Income before taxes $
Less: Income taxes
Net income $
Includes both state and federal taxes.
Somerville Company
Statement of Retained Earnings
For the Year Ended December X
Line Item Description Amount
Balance, beginning of period $
Net income
Total $
Preferred dividends
Dividends to common stockholders
Balance, end of period $
Somerville Company
Comparative Balance Sheets
At December X and X
Line Item Description XX
Assets
Current assets:
Cash $ $
Marketable securities
Accounts receivable net
Inventories
Other
Total current assets $ $
Property and equipment:
Land $ $
Building and equipment net
Total longterm assets $ $
Total assets $ $
Liabilities and Stockholders' Equity
Current liabilities:
Notes payable, short term $ $
Accounts payable
Current maturity of longterm debt
Accrued payables
Total current liabilities $ $
Longterm liabilities:
Bonds payable,
Total liabilities $ $
Stockholders' equity:
Preferred stock, $ par, $ $
Common stock, $ par
Additional paidin capital
Retained earnings
Total stockholders' equity $ $
Total liabilities and stockholders' equity $ $
For common stock only.
Also, assume that the price per common share for Somerville is $
Required:
Compute the priceearnings ratio. Round your interim calculation and final answer to two decimal places.
fill in the blank of
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