The following information was taken from the financial statements of KIM Distributors, for December 31 of...

The following information was taken from the financial statements of KIM Distributors, for December 31 of the current year:

Common stock, $5 par value (no change during the year) ……………………………..$1,500,000

Preferred $5 stock, $50 par (no change during the year) …………………………………. 450,000

The net income was $450,000, and the declared dividends on the common stock were $75,000 for the current year. The market price of the common stock is $20 per share.

For the common stock, determine (a) earnings per share, (b) the price-earnings ratio, (c) the dividends per share, and, (d) the dividend yield. Round EPS to two decimal places, and the rest to one decimal place.

a. Earnings per share

b. Price-earnings ratio

c. Dividends per share

d. Dividend yield

Solutions

Expert Solution

The following information was taken from the financial statements of KIM Distributors, for December 31 of the current year:

Common stock, $5 par value =.$1,500,000

Preferred $5 stock, $50 par= 450,000

The net income was =$450,000,

The declared dividends on the common stock were= $75,000

The market price of the common stock is = $20 per share.

a) Earnings per share,
EPS
(450000-(450000/50*5))/300000 1.35

b.Price-earnings ratio

PE ratio=MPS/EPS
20/1.35 14.81

c. Dividends per share
=75000/300000 0.25

d. Dividend yield

DPS/MPS= .25/20   0.0125
or .0125*100=1.25%

Any doubt comment below i will explain or resolve until you got....
PLEASE.....UPVOTE....ITS REALLY HELPS ME....THANK YOU....SOOO MUCH....
Please comment if any querry i will resolve as soon as possible

ekkarill92 answered 1 year ago

Next > < Previous

Related Solutions

The following information was taken from the financial statements of Tolbert Inc. for December 31 of...

The following information was taken from the financial statements of Tolbert Inc. for December 31 of the current fiscal year: Common stock, $40 par value (no change during the year) $9,600,000 Preferred $5 stock, $100 par (no change during the year) 3,000,000 The net income was $822,000 and the declared dividends on the common stock were $60,000 for the current year. The market price of the common stock is $21.00 per share. For the common stock, determine (a) the earnings...

The following information was taken from the financial statements of Tolbert Inc. for December 31 of...

The following information was taken from the financial statements of Tolbert Inc. for December 31 of the current fiscal year: Common stock, $15 par value (no change during the year) $3,600,000 Preferred $4 stock, $200 par (no change during the year) 6,000,000 The net income was $792,000 and the declared dividends on the common stock were $60,000 for the current year. The market price of the common stock is $19.60 per share. For the common stock, determine (a) the earnings...

The following information was taken from the financial statements of Monarch Resources Inc. for December 31...

The following information was taken from the financial statements of Monarch Resources Inc. for December 31 of the current year: Common stock, $40 par value (no change during the year) $6,400,000 Preferred $10 stock, $200 par (no change during the year) 4,000,000 The net income was $616,000, and the declared dividends on the common stock were $166,400 for the current year. The market price of the common stock is $40 per share. For the common stock, determine (a) the earnings...

The following information is taken from Lisa Corporation's financial statements: December 31 2021 2020 Cash $...

The following information is taken from Lisa Corporation's financial statements: December 31 2021 2020 Cash $ 75,600 $ 32,400 Accounts receivable 122,400 96,000 Allowance for doubtful accounts (5,400) (3,720) Inventory 192,000 210,000 Prepaid expenses 9,000 8,160 Land 120,000 72,000 Buildings 352,800 292,800 Accumulated depreciation (38,400) (15,600) Patents 24,000 42,000 $852,000 $734,040 Accounts payable $ 108,000 $ 100,800 Accrued liabilities 64,800 75,600 Bonds payable 150,000 72,000 Common stock 120,000 120,000 Retained earnings―appropriated 96,000 12,000 Retained earnings―unappropriated 331,200 363,240 Treasury stock, at...

The following information is taken from French Corporation's financial statements: December 31 2018 2017 Cash $...

The following information is taken from French Corporation's financial statements: December 31 2018 2017 Cash $ 89,060 $ 32,940 Accounts receivable 124,440 97,600 Allowance for doubtful accounts (5,490) (3,782) Inventory 189,100 213,500 Prepaid expenses 9,150 8,296 Land 122,000 73,200 Buildings 352,580 297,680 Accumulated depreciation (39,040) (15,860) Patents 24,400 42,700 $866,200 $746,274 Accounts payable $ 109,800 $ 102,480 Accrued liabilities 65,880 76,860 Bonds payable 152,500 73,200 Common stock 122,000 122,000 Retained earnings―appropriated 97,600 12,200 Retained earnings―unappropriated 336,720 369,294 Treasury stock, at...

Question 23 The following information is taken from Debra Corporation's financial statements: December 31 2021 2020...

Question 23 The following information is taken from Debra Corporation's financial statements: December 31 2021 2020 Cash $ 68,670 $ 29,430 Accounts receivable 111,180 87,200 Allowance for doubtful accounts (4,905) (3,379) Inventory 174,400 190,750 Prepaid expenses 8,175 7,412 Land 109,000 65,400 Buildings 320,460 265,960 Accumulated depreciation (34,880) (14,170) Patents 21,800 38,150 $773,900 $666,753 Accounts payable $ 98,100 $ 91,560 Accrued liabilities 58,860 68,670 Bonds payable 136,250 65,400 Common stock 109,000 109,000 Retained earnings―appropriated 87,200 10,900 Retained earnings―unappropriated 300,840 329,943 Treasury...

The following information is taken from ABC Corporation's financial statements: December 31 2011 2010 Cash $90,000...

The following information is taken from ABC Corporation's financial statements: December 31 2011 2010 Cash $90,000 $ 27,000 Accounts receivable, net 87,500 76,900 Inventory 155,000 175,000 Prepaid expenses 7,500 6,800 Land 90,000 60,000 Buildings 287,000 244,000 Accumulated depreciation (32,000) (13,000) Patents 20,000 35,000 $705,000 $611,700 Accounts payable $ 90,000 $ 84,000 Accrued liabilities 54,000 63,000 Bonds payable 125,000 60,000 Common stock 100,000 100,000 Retained earnings 351,000 312,700 Treasury stock, at cost (15,000) (8,000) $705,000 $611,700 For 2011 Year Net income...

The following information is taken from Smith Corporation's financial statements: December 31 2020 2019 Cash $100,000...

The following information is taken from Smith Corporation's financial statements: December 31 2020 2019 Cash $100,000 $ 27,000 Accounts receivable 95,000 80,000 Allowance for doubtful accounts (4,500) (3,100) Inventory 145,000 175,000 Prepaid expenses 7,500 6,800 Land 100,000 60,000 Buildings 287,000 244,000 Accumulated depreciation (35,000) (13,000) Patents 20,000 ———————— $715,000 35,000 ———————— $611,700 Accounts payable $ 90,000 $ 84,000 Accrued liabilities 54,000 63,000 Bonds payable 135,000 60,000 Common stock 100,000 100,000 Retained earnings——appropriated 80,000 10,000 Retained earnings——unappropriated 271,000 302,700...

The following items are taken from the financial statements of Ivanhoe Company at December 31, 2022....

The following items are taken from the financial statements of Ivanhoe Company at December 31, 2022. Land $197,900 Accounts receivable 22,000 Supplies 10,200 Cash 12,050 Equipment 82,100 Buildings 261,200 Land improvements 45,900 Notes receivable (due in 2023) 6,200 Accumulated depreciation—land improvements 12,700 Common stock 80,000 Retained earnings (December 31, 2022) 495,000 Accumulated depreciation—buildings 33,600 Accounts payable 9,800 Mortgage payable 91,900 Accumulated depreciation—equipment 18,950 Interest payable 3,400 Income taxes payable 15,500 Patents 46,700 Investments in stock (long-term) 71,300 Debt investments (short-term)...

The following items are taken from the financial statements of Sheridan Company at December 31, 2022....

The following items are taken from the financial statements of Sheridan Company at December 31, 2022. Land $196,500 Accounts receivable 22,600 Supplies 10,700 Cash 12,050 Equipment 84,000 Buildings 263,000 Land improvements 46,250 Notes receivable (due in 2023) 5,400 Accumulated depreciation—land improvements 13,100 Common stock 76,000 Retained earnings (December 31, 2022) 491,000 Accumulated depreciation—buildings 33,300 Accounts payable 9,900 Mortgage payable 103,950 Accumulated depreciation—equipment 18,950 Interest payable 4,000 Income taxes payable 14,700 Patents 46,700 Investments in stock (long-term) 72,400 Debt investments (short-term)...

Subjects