Calculate the Price Earnings Ratio and Return on Shareholders' Equity for 2020. (Round pri 15.25 and return on shareholders' equity to 1 decimal place. e.g. 15.2%) Price Earnings Ratio - Return On Equity %
Q: On Aug 29, Sindhu received an invoice for $85.49, dated Aug 27. If the terms of the invoice are…
A: The invoice is prepared by the seller and given to the buyer with details of amount due, discount…
Q: Lipsion Ltd company is thinking about investing in one of two potential new products for sale. The…
A: A financial analysis tool used to determine the profitability of possible investments is the…
Q: Sheffield Company has the following information available: Net income, $22000; Cash provided by…
A: The amount of cash flows generated by an entity during a period and which are free from all kind of…
Q: Discount Pizza retires its 7% bonds for $59,000 before their scheduled maturity. At the time, the…
A: Introduction:- Journal entry is the first stage of accounting process. Journal entry used to record…
Q: [The following information applies to the questions displayed below.] Simon Company's year-end…
A: Ratio Analysis -The ratio is the technique used by the prospective investor or an individual or…
Q: The meaning of goodwill in accounting is:
A: The correct answer is: (A) The amount by which a company's value exceeds the value of its individual…
Q: Raleigh Department Store uses the conventional retall method for the year ended December 31, 2022.…
A: Solution: Raleigh Department…
Q: Buying shares in a corporation is attractive to investors because: a All of these answers are…
A: Shareholder's are the owner's of the corporation in which the amount of capital is known as…
Q: Tyson owns a condominium near Laguna Beach, California. This year, he incurs the following expenses…
A: Itemized deduction: It is a deduction that a taxpayer gets on its taxable income. It reduce the…
Q: On June 1, 20x4, a tract of land that originally cost P 800,000 was sold to SHE Company. The company…
A: Introduction The compensation received by an entity for borrowing its cash or permitting another…
Q: Meyda Company's bank statement for the month of June showe balance per bank of €10,336. The…
A: Bank reconciliation statement, it's the statement which is prepared to tally the cash balances as…
Q: Income Statement October November December…
A: Lets understand the basics. Management prepares various type of budgets based on the activity…
Q: tthew bought a new Jeep Commander for $30,000. The Jeep Commander has a life expectancy of 5 years…
A: Answer : Cost = $30,000 Life = 5 Years Residual value = $10,000 Depreciation expenses per year =…
Q: You are getting ready to start a new project that will incur some cleanup and shutdown costs when it…
A: In order to calculate NPV, we must first determine the present value of all cash inflows and the…
Q: Rachel Weitzman's basis in investment-use land was $15,000. She received a gross condemnation award…
A: Introduction:- Calculation of unrealized gain as follows:- Unrealized gain = Net condemnation award…
Q: in 2024, the marion company purchased land containing a mineral mine for $1,500,000. Additional…
A: Book Value of any asset means the value obtained after subtracting the depreciation amount from the…
Q: Alexander Inc. makes basketballs. The results for the year were as follows: Basketballs…
A: Since you have posted a question with multiple sub-parts, we will solve first three subparts for…
Q: Define the following and provide respective examples; Simple interest Compound interest Annual…
A: Simple Interest: Simple interest is a type of interest calculation where the interest amount is…
Q: Joe's Soup plant has a monthly capacity of 2,000 cases. Joe's Soup plant has jus special order to…
A: Lets understand the basics. When any special order situation arise then management chooses to accept…
Q: brate Reporting and Analysis Problems ... Required information [The following information applies to…
A: PAR VALUE Par value, in finance and accounting, means stated value or face value. Par value,…
Q: Assume a company is preparing a budget for its first two months of operations. During the first and…
A: Note: Accounts receivable at the end of the month means the amount not received from the debtors.…
Q: Problem 4: Calculate net tax due Saji and Henry Lozano are married for all of 2022 and have an AGI…
A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: Addison, Inc. uses a perpetual inventory system. The following is information about one inventory…
A: LIFO: LIFO stands for Last-In, First-Out. In this method inventory purchased at last will be sold…
Q: Total Current Assets Long-Term Assets: Machinery Acc. Depreciation, Machinery Total Long-Term Assets…
A: Cash flows statement is one of the financial statement of the business, which shows all cash inflows…
Q: Condensed income statements for Werly Corporation are shown below for two years.…
A: whenever any mistake is done and that mistake is due to the any wrong recording or the overstatement…
Q: Compute the breakeven revenue. Revenue Variable costs Contribution margin $40,000 30,000 10,000
A: Solution... Contribution margin ratio = Contribution margin / sales revenue
Q: Applying Excel-Data Visualization: Exercise (Part 2 of 2) On the Data Visualization - Student tab in…
A: 1. We first enter the data in a Microsoft Excel spreadsheet. We then format the Per per unit column…
Q: Stockholders' equity of Ernst Company consists of 80,000 shares of $5 pa 280,000 shares of $1 par…
A: Solution.. As the Preferred stocks are Cumulative therefore, Arrear of preferred dividend will…
Q: Epic Incorporated has 10,500 shares of $2 par value common stock outstanding. Epic declares a 10%…
A: The stock dividend is the dividend for which company issues shares instead of cash. The stock…
Q: Use the following information for the Quick Studies below. (Algo) ($ thousands) Net sales Current…
A: Given, Current year net sales = $802,213 Prior year net sales = $453.350
Q: Using the above information and the direct method, calculate the cash payments to suppliers. Cash…
A: Introduction:- The following formula used to calculate as follows:- Cash payment to supplier =Cost…
Q: On July 1, 20x3, Wenna Inc. purchased as a short-term investment a P 1,000,000 face value Keizen Co.…
A: WORKINGS- Date of Purchase - July 1 ,20x3 Calculation of Accrued Interest P1,000,000 X 10% X 1/2…
Q: 1. Explain the term internal controls. 2. Explain two (2) major objectives of a system of internal…
A: 1. 1. Internal controls are the procedures, processes and systems that an organization puts in place…
Q: Several years ago Brant, Inc., sold $950,000 in bonds to the public. Annual cash interest of 8…
A: Bond One sort of long-term debt is a bond. Bonds are tradable assets that represent units of…
Q: Question 27 Fundamentally, the identification of a performance shortfall becomes an exercise in…
A: Performance analysis is the process of observing the operation and evaluating the information…
Q: A loan of $172,000 at 3.12% compounded quarterly was to be settled with month-end payments of…
A: Annual, semi-annual, quarterly, or monthly payment of loan includes the portion of interest expense…
Q: Problem 3: Calculate Tax Liability Andrew Golden works as a personal secretary for Jackson…
A: Workings :- 1) Tax on Wages & Self Employment income Andrew has qualified dependent and…
Q: Suppose that A arranges for B to clean A's windows, and promises to pay B $1000 for his work. B does…
A: Consideration is a fee made with the aid of using one birthday celebration to some other in trade…
Q: Gee Company accumulates the following adjustment data at December 31. Indicate the type of…
A: Solution:- Indication of the type of adjustment (prepaid expense, accrued revenue, and so on) and…
Q: oseph Company purchased equipment on Jan. 1, 2025 for P800,000. The company spent P30,000 for its…
A: The straight line method is a depreciation method which charges the depreciation expense to the…
Q: Nebraska Inc. issues 2,200 shares of common stock for $70,400. The stock has a stated value of $20…
A: Common stock is the kind of stock issued by the entity for raising funds from the market. The…
Q: Commodore Entertainment has four profitable business segments, described as follows: • Media…
A: The profit margin is simply calculated by dividing the amount of income that an organization or…
Q: Use the information provided to calculate standard costs: To make one switch it takes 17 feet of…
A: Introduction:- Standard costs are estimates of the actual costs in a company’s production process…
Q: to help George and Jude Sullivan determine how much they need to retire early in about 20 years.…
A: Investment: An investment is an asset purchased with the idea of generating income out of it. It…
Q: Current Attempt in Progress On January 1, Year 3, a company changed its inventory costing method…
A: The implementation of an accounting approach that differs from that utilized previously is referred…
Q: Elite services both residential and commercial clients. Management believes that the commercial…
A: If overhead for the year was $205,000, with 20,000 hours worked last year, what were the profits of…
Q: You buy $1,500 worth of materials to build your office at home. It will be the primary place of…
A: The wage System includes two methods i.e, payment made to the workers based on time spent on the…
Q: Accompanying the bank statement has a memo for bank service charges. On the bank reconciliation, the…
A: Bank reconciliation: It is a statement drawn up by the business to verify the cash book balance with…
Q: The following information pertains to Oliwander's annual operations: Selling price per unit $50…
A: Variable Cost :— It is the cost that changes with change in units. Variable cost per units is…
Q: Murray Company reports net income of $769,500 for the year. It has no preferred stock, and its…
A: BASIC EARNINGS PER SHARE : = (NET INCOME - PREFERRED DIVIDEND) / WEIGHTED AVERAGE COMMON SHARES…
need help
Step by step
Solved in 3 steps
- Monona Company reported net income of 29,975 for 2019. During all of 2019, Monona had 1,000 shares of 10%, 100 par, nonconvertible preferred stock outstanding, on which the years dividends had been paid. At the beginning of 2019, the company had 7,000 shares of common stock outstanding. On April 2, 2019, the company issued another 2,000 shares of common stock so that 9,000 common shares were outstanding at the end of 2019. Common dividends of 17,000 had been paid during 2019. At the end of 2019, the market price per share of common stock was 17.50. Required: 1. Compute Mononas basic earnings per share for 2019. 2. Compute the price/earnings ratio for 2019.Lyon Company shows the following condensed income statement information for the year ended December 31, 2019: Lyon declared dividends of 6,000 on preferred stock and 17,280 on common stock. At the beginning of 2019, 10,000 shares of common stock were outstanding. On May 1, 2019, the company issued 2,000 additional common shares, and on October 31, 2019, it issued a 20% stock dividend on its common stock. The preferred stock is not convertible. Required: 1. Compute the 2019 basic earnings per share. 2. Show the 2019 income statement disclosure of basic earnings per share. 3. Draft a related note to accompany the 2019 financial statements.Roseau Company is preparing its annual earnings per share amounts to be disclosed on its 2019 income statement. It has collected the following information at the end of 2019: 1. Net income: 120,400. Included in the net income is income from continuing operations of 130,400 and a loss from discontinued operations (net of income taxes) of 10,000. Corporate income tax rate: 30%. 2. Common stock outstanding on January 1, 2019: 20,000 shares. 3. Common stock issuances during 2019: July 6, 4,000 shares; August 24, 3,000 shares. 4. Stock dividend: On October 19, 2019, the company declared a 10% stock dividend that resulted in 2,700 additional outstanding shares of common stock. 5. Common stock prices: 2019 average market price, 30 per share; 2019 ending market price, 27 per share. 6. 7% preferred stock outstanding on January 1, 2019: 1,000 shares. Terms: 100 par, nonconvertible. Current dividends have been paid. No preferred stock issued during 2019. 7. 8% convertible preferred stock outstanding on January 1, 2019: 800 shares. The stock was issued in 2018 at 130 per share. Each 100 par preferred stock is currently convertible into 1.7 shares of common stock. Current dividends have been paid. To date, no preferred stock has been converted. 8. Bonds payable outstanding on January 1, 2019: 100,000 face value. These bonds were issued several years ago at 97 and pay annual interest of 9.6%. The discount is being amortized in the amount of 300 per year. Each 1,000 bond is currently convertible into 22 shares of common stock. To date, no bonds have been converted. 9. Compensatory share options outstanding: Key executives may currently acquire 3,000 shares of common stock at 20 per share. The options were granted in 2018. To date, none have been exercised. The unrecognized compensation cost (net of tax) related to the options is 4 per share. Required: 1. Compute the basic earnings per share. Show supporting calculations. 2. Compute the diluted earnings per share. Show supporting calculations. 3. Show how Roseau would report these earnings per share figures on its 2019 income statement. Include an explanatory note to the financial statements.
- Hyde Corporations capital structure at December 31, 2018, was as follows: On July 2, 2019, Hyde issued a 10% stock dividend on its common stock and paid a cash dividend of 2.00 per share on its preferred stock. Net income for the year ended December 31, 2019, was 780,000. What should be Hydes 2019 basic earnings per share? a. 7.80 b. 7.09 c. 7.68 d. 6.73Anoka Company reported the following selected items in the shareholders equity section of its balance sheet on December 31, 2019, and 2020: In addition, it listed the following selected pretax items as a December 31, 2019 and 2020: The preferred shares were outstanding during all of 2019 and 2020; annual dividends were declared and paid in each year. During 2019, 2,000 common shares were sold for cash on October 4. During 2020, a 20% stock dividend was declared and issued in early May. At the end of 2019 and 2020, the common stock was selling for 25.75 and 32.20, respectively. The company is subject to a 30% income tax rate. Required: 1. Prepare the comparative 2019 and 2020 income statements (multiple-step), and the related note that would appear in Anokas 2020 annual report. 2. Next Level Compute the price/earnings ratio for 2020. How does this compare to 2019? Why is it different?On January 1, 2019, Kittson Company had a retained earnings balance of 218,600. It is subject to a 30% corporate income tax rate. During 2019, Kittson earned net income of 67,000, and the following events occurred: 1. Cash dividends of 3 per share on 4,000 shares of common stock were declared and paid. 2. A small stock dividend was declared and issued. The dividend consisted of 600 shares of 10 par common stock. On the date of declaration, the market price of the companys common stock was 36 per share. 3. The company recalled and retired 500 shares of 100 par preferred stock. The call price was 125 per share; the stock had originally been issued for 110 per share. 4. The company discovered that it had erroneously recorded depreciation expense of 45,000 in 2018 for both financial reporting and income tax reporting. The correct depreciation for 2018 should have been 20,000. This is considered a material error. Required: 1. Prepare journal entries to record Items 1 through 4. 2. Prepare Kittsons statement of retained earnings for the year ended December 31, 2019.
- Ratio Analysis Consider the following information taken from the stockholders equity section: How do you interpret the companys payout and profitability performance? Required: 1. Calculate the following for 2020. (Note. Round answers to two decimal places.) 2. CONCEPTUAL CONNECTION Assume 2019 ratios were: and the current year industry averages are: How do you interpret the companys payout and profitability performance?Net Income and Comprehensive Income At the beginning of 2019, JR Companys shareholders equity was as follows: During 2019, the following events and transactions occurred: 1. JR recognized sales revenues of 108,000. It incurred cost of goods sold of 62,000 and operating expenses of 12,000, 2. JR issued 1,000 shares of its 5 par common stock for 14 per share. 3. JR invested 30,000 in available-for-sale securities. At the end of the year, the securities had a fair value of 35,000. 4. JR paid dividends of 6,000. The income tax rate on all items of income is 30%. Required: 1. Prepare a 2019 income statement for JR which includes net income and comprehensive income ignore earnings per share). 2. For 2016 prepare a separate (a) income statement (ignore earnings per share) and (b) statement of comprehensive income.Jumbo Corporation reported the following information about its stock on its December 31, 2018, balance sheet: Jumbo Corporation engaged in the following stock transactions during 2019: Required: 1. Does Jumbo Corporation have a simple or complex capital structure? 2. Calculate the number of shares that Jumbo would use to calculate basic EPS for its 2019 income statement.
- Leverage Cook Corporation issued financial statements at December 31, 2019, that include the following information: Balance sheet at December 31,2019 Assets $8,000,000 Liabilities $1,200,000 Stockholders' equity (300,000 shares) $6,800,000 Income statement for 2019: Income from operations $1,200,000 Less: Interest expense (100,000) Income before taxes $1,100,000 Less: Income taxes expense (0,30) (330,000) Net income $ 770,000 The levels of assets, liabilities, stockholders' equity, and operating income have been stable in recent years; however, Cook Corporation is planning a 51,800,000 expansion program that will increase income from operations by $350,000 to $1,550,000, Cook is planning to sell 8.5% notes at par to finance the expansion. Required: What earnings per share does Cook report before the expansion?Comprehensive The following are Farrell Corporations balance sheets as of December 31, 2019, and 2018, and the statement of income and retained earnings for the year ended December 31, 2019: Additional information: a. On January 2, 2019, Farrell sold equipment costing 45,000, with a book value of 24,000, for 19,000 cash. b. On April 2, 2019, Farrell issued 1, 000 shares of common stock for 23,000 cash. c. On May 14, 2019, Farrell sold all of its treasury stock for 25,000 cash. d. On June 1, 2019, Farrell paid 50, 000 to retire bonds with a face value (and book value) of 50, 000. e. On July 2, 2019, Farrell purchased equipment for 63, 000 cash. f. On December 31, 2019, land with a fair market value of 150,000 was purchased through the issuance of a long-term note in the amount of 150,000. The note bears interest at the rate of 15% and is due on December 31, 2021. g. Deferred taxes payable represent temporary differences relating to the use of accelerated depreciation methods for income tax reporting and the straight-line method for financial statement reporting. Required: 1. Prepare a spreadsheet to support a statement of cash flows for Farrell for the year ended December 31, 2019, based on the preceding information. 2. Prepare the statement of cash flows. (Appendix 21.1) Spreadsheet and Statement Refer to the information for Farrell Corporation in P21-13. Required: 1. Using the direct method for operating cash flows, prepare a spreadsheet to support a 2019 statement of cash flows. (Hint: Combine the income statement and December 31, 2019, balance sheet items for the adjusted trial balance. Use a retained earnings balance of 291,000 in this adjusted trial balance.) 2. Prepare the statement of cash flows. (A separate schedule reconciling net income to cash provided by operating activities is not necessary.)Comprehensive The following are Farrell Corporations balance sheets as of December 31, 2019, and 2018, and the statement of income and retained earnings for the year ended December 31, 2019: Additional information: a. On January 2, 2019, Farrell sold equipment costing 45,000, with a book value of 24,000, for 19,000 cash. b. On April 2, 2019, Farrell issued 1,000 shares of common stock for 23,000 cash. c. On May 14, 2019, Farrell sold all of its treasury stock for 25,000 cash. d. On June 1, 2019, Farrell paid 50,000 to retire bonds with a face value (and book value) of 50,000. e. On July 2, 2019, Farrell purchased equipment for 63,000 cash. f. On December 31, 2019. land with a fair market value of 150,000 was purchased through the issuance of a long-term note in the amount of 150,000. The note bears interest at the rate of 15% and is due on December 31, 2021. g. Deferred taxes payable represent temporary differences relating to the use of accelerated depreciation methods for income tax reporting and the straight-line method for financial statement reporting. Required: 1. Prepare a spreadsheet to support a statement of cash flows for Farrell for the year ended December 31, 2019, based on the preceding information. 2. Prepare the statement of cash flows.