Question
In: Accounting
7. Five Measures of Solvency or Profitability The balance sheet for Bearing Industries Inc. at the...
7.
Five Measures of Solvency or Profitability
The balance sheet for Bearing Industries Inc. at the end of the current fiscal year indicated the following:
| Bonds payable, 10% | $1,600,000 |
| Preferred $5 stock, $100 par | 440,000 |
| Common stock, $11 par | 726,000 |
Income before income tax was $336,000, and income taxes were $50,000, for the current year. Cash dividends paid on common stock during the current year totaled $110,880. The common stock was selling for $48 per share at the end of the year.
Determine each of the following. Round answers to one decimal place, except for dollar amounts which should be rounded to the nearest whole cent. Use the rounded answers for subsequent requirements, if required.
| a. Times interest earned ratio | times | |
| b. Earnings per share on common stock | $ | |
| c. Price-earnings ratio | ||
| d. Dividends per share of common stock | $ | |
| e. Dividend yield | % |
Solutions
ekkarill92 answered 1 year agoRelated Solutions
Five Measures of Solvency or Profitability The balance sheet for Bearing Industries Inc. at the end...
Five Measures of Solvency or Profitability
The balance sheet for Bearing Industries Inc. at the end of the
current fiscal year indicated the following:
Bonds payable, 7%
$1,500,000
Preferred $10 stock, $100 par
174,000
Common stock, $14 par
1,126,650
Income before income tax was $399,000, and income taxes were
$59,700, for the current year. Cash dividends paid on common stock
during the current year totaled $77,256. The common stock was
selling for $48 per share at the end of the...
Five Measures of Solvency or Profitability The balance sheet for Bearing Industries Inc. at the end...
Five Measures of Solvency or Profitability
The balance sheet for Bearing Industries Inc. at the end of the
current fiscal year indicated the following:
Bonds payable, 7%
$1,700,000
Preferred $5 stock, $50 par
87,000
Common stock, $11 par
394,762.5
Income before income tax was $178,500, and income taxes were
$26,250, for the current year. Cash dividends paid on common stock
during the current year totaled $43,065. The common stock was
selling for $40 per share at the end of the...
Five Measures of Solvency or Profitability The balance sheet for Bearing Industries Inc. at the end...
Five Measures of Solvency or Profitability
The balance sheet for Bearing Industries Inc. at the end of the
current fiscal year indicated the following:
Bonds payable, 8%
$1,500,000
Preferred $10 stock, $50 par
106,000
Common stock, $6 par
63,600
Income before income tax was $336,000, and income taxes were
$49,800, for the current year. Cash dividends paid on common stock
during the current year totaled $79,500. The common stock was
selling for $250 per share at the end of the...
Five Measures of Solvency or Profitability The balance sheet for Bearing Industries Inc. at the end...
Five Measures of Solvency or Profitability
The balance sheet for Bearing Industries Inc. at the end of the
current fiscal year indicated the following:
Bonds payable, 10%
$1,700,000
Preferred $5 stock, $50 par
340,000
Common stock, $14 par
3,808,000
Income before income tax was $680,000, and income taxes were
$102,000, for the current year. Cash dividends paid on common stock
during the current year totaled $97,920. The common stock was
selling for $24 per share at the end of the...
Five Measures of Solvency or Profitability The balance sheet for Bearing Industries Inc. at the end...
Five Measures of Solvency or Profitability
The balance sheet for Bearing Industries Inc. at the end of the
current fiscal year indicated the following:
Bonds payable, 10%
$1,700,000
Preferred $5 stock, $50 par
340,000
Common stock, $14 par
3,808,000
Income before income tax was $680,000, and income taxes were
$102,000, for the current year. Cash dividends paid on common stock
during the current year totaled $97,920. The common stock was
selling for $24 per share at the end of the...
Five Measures of Solvency or Profitability The balance sheet for Garcon Inc. at the end of...
Five Measures of Solvency or Profitability
The balance sheet for Garcon Inc. at the end of the current
fiscal year indicated the following:
Bonds payable, 10%
$900,000
Preferred $5 stock, $50 par
$72,000
Common stock, $9 par
$44,064.00
Income before income tax was $153,000, and income taxes were
$23,400 for the current year. Cash dividends paid on common stock
during the current year totaled $12,876. The common stock was
selling for $175 per share at the end of the year....
Five Measures of Solvency or Profitability The balance sheet for Garcon Inc. at the end of...
Five Measures of Solvency or Profitability
The balance sheet for Garcon Inc. at the end of the current
fiscal year indicated the following:
Bonds payable, 8%
$1,500,000
Preferred $5 stock, $50 par
$246,000
Common stock, $8 par
$106,272.00
Income before income tax was $420,000, and income taxes were
$63,300 for the current year. Cash dividends paid on common stock
during the current year totaled $99,630. The common stock was
selling for $250 per share at the end of the year....
Five Measures of Solvency or Profitability The balance sheet for Garcon Inc. at the end of...
Five Measures of Solvency or Profitability
The balance sheet for Garcon Inc. at the end of the current
fiscal year indicated the following:
Bonds payable, 7%
$1,800,000
Preferred $5 stock, $50 par
$222,000
Common stock, $9 par
$1,348,650.00
Income before income tax was $378,000, and income taxes were
$56,100 for the current year. Cash dividends paid on common stock
during the current year totaled $62,937. The common stock was
selling for $14 per share at the end of the year....
Five Measures of Solvency or Profitability The balance sheet for Garcon Inc. at the end of...
Five Measures of Solvency or Profitability
The balance sheet for Garcon Inc. at the end of the current
fiscal year indicated the following:
Bonds payable, 7%
$1,800,000
Preferred $5 stock, $50 par
$222,000
Common stock, $9 par
$1,348,650.00
Income before income tax was $378,000, and income taxes were
$56,100 for the current year. Cash dividends paid on common stock
during the current year totaled $62,937. The common stock was
selling for $14 per share at the end of the year....
Five Measures of Solvency or Profitability The balance sheet for Garcon Inc. at the end of...
Five Measures of Solvency or Profitability
The balance sheet for Garcon Inc. at the end of the current
fiscal year indicated the following:
Bonds payable, 8%
$900,000
Preferred $5 stock, $100 par
$100,000
Common stock, $5 par
$23,125.00
Income before income tax was $115,200, and income taxes were
$17,700 for the current year. Cash dividends paid on common stock
during the current year totaled $38,850. The common stock was
selling for $240 per share at the end of the year....
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