Fowler Company reported these figures for 2018and 2017: Data table: 2017 2018 Income Statement—partial: Net Income $18,200 $25,000 Dec. 31, 2018 Dec. 31, 2017 Balance Sheet—partial: Total Assets $265,000 $275,000 Paid-In Capital: Preferred Stock—5%, $6 Par Value; 55,000 shares $84,000 $84,000 authorized, 14,000 shares issued and outstanding Common Stock—$3 Par Value; 70,000 shares 105,000 105,000 authorized; 35,000 shares issued and outstanding Paid-In Capital in Excess of Par—Common 5,000 5,000 Retained Earnings 59,000 45,000 Total Stockholders' Equity $253,000 $239,000 Requirements: Compute Fowler Company's earnings per share for 2018. Assume the company paid the minimum preferred dividend during 2018. Round to the nearest cent. Compute Fowler Company's price/earnings ratio for 2018. Assume the company's market price per share of common stock is $4. Round to two decimals. Compute Fowler Company's rate of return on common stockholders' equity for 2018. Assume the company paid the minimum preferred dividend during 2018. Round to the nearest whole percent.

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter16: Retained Earnings And Earnings Per Share

Section: Chapter Questions

Problem 18E: Monona Company reported net income of 29,975 for 2019. During all of 2019, Monona had 1,000 shares...

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Fowler Company reported these figures for 2018and 2017:

Data table: 2017

	2018
Income Statement—partial:
Net Income	$18,200	$25,000
	Dec. 31, 2018	Dec. 31, 2017
Balance Sheet—partial:
Total Assets	$265,000	$275,000
Paid-In Capital:
Preferred Stock—5%, $6 Par Value; 55,000 shares	$84,000	$84,000
authorized, 14,000 shares issued and outstanding
Common Stock—$3 Par Value; 70,000 shares	105,000	105,000
authorized; 35,000 shares issued and outstanding
Paid-In Capital in Excess of Par—Common	5,000	5,000
Retained Earnings	59,000	45,000
Total Stockholders' Equity	$253,000	$239,000

Requirements:

Compute Fowler Company's earnings per share for 2018. Assume the company paid the minimum preferred dividend during 2018. Round to the nearest cent.
Compute Fowler Company's price/earnings ratio for 2018. Assume the company's market price per share of common stock is $4. Round to two decimals.
Compute Fowler Company's rate of return on common stockholders' equity for 2018. Assume the company paid the minimum preferred dividend during 2018. Round to the nearest whole percent.

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