Intermediate Accounting - Myaccountinglab - Pearson Etext Access Card Student Value Edition
1st Edition
ISBN: 9780134047430
Author: Elizabeth A. Gordon, Jana S. Raedy, Alexander J. Sannella
Publisher: PEARSON
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Chapter 20, Problem 20.3BE
Computing Income for Basic EPS. Russo Watches, Ltd reported $1,625,000 net income for the current year Russo has $5,000,000, 6% convertible debt issued at par and $320,000 par value, 4% nonconvertible, noncumulative
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The following data were taken from the financial statements of Hunter Inc. for December 31 of two recent years: Line
Item Description Current Year Previous Year Accounts payable $362,000 $226,000 Current maturities of serial bonds
payable 360,000 360,000 Serial bonds payable, 10 % 1,700,000 2,060,000 Common stock, $1 par value 70,000 90,000
Paid-in capital in excess of par 760,000 760,000 Retained earnings 2, 630,000 2,090,000 The income before income tax
expense was $803, 400 and $703,000 for the current and previous years, respectively. a. Determine the ratio of liabilities
to stockholders' equity at the end of each year. Round your answers to one decimal place. Line Item Description Ratio
Current year fill in the blank 1 Previous year fill in the blank 2 b. Determine the times interest earned ratio for both years.
Round your answers to one decimal place.
The following data were taken from the financial statements of Hunter Inc. for December 31 of two recent years:
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Current Year
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Accounts payable
$175,000
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$274,000
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Current maturities of serial bonds payable
360,000
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360,000
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Serial bonds payable, 10%
1,890,000
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2,250,000
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Common stock, $1 par value
90,000
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120,000
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Paid-in capital in excess of par
1,070,000
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1,070,000
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3,690,000
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2,930,000
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The income before income tax expense was $832,500 and $728,400 for the current and prior years, respectively.
a.  Determine the ratio of liabilities to stockholders' equity at the end of each year. Round to one decimal place.
Current year
fill in the blank 1
Prior year
fill in the blank 2
b.  Determine the times interest earned ratio for both years. Round to one decimal place.
Current year
fill in the blank 3
Prior year
fill in the blank 4
c. Â The ratio of liabilities to stockholders' equity haveÂ
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 and the times interest…
The following data were taken from the financial statements of Hunter Inc. for December 31 of two recent years:
Current Year Previous Year Accounts payable $924,000 $800,000
Current maturities of serial bonds payable 200,000 200,000
Serial bonds payable, 10%, issued 2009, due 2019 1,000,000 1,200,000
Common stock, $10 par value 250,000 250,000
Paid-in capital in excess of par 1,250,000 1,250,000
Retained earnings 860,000 500,000
The income before income tax was $480,000 and $420,000 for the current and previous years, respectively.
a. Determine the ratio of liabilities to stockholders' equity at the end of each year. Round to one decimal place.
Current year
Previous year
b. Determine the number of times the bond interest charges are earned during the year for both years. Current year Previous year
Chapter 20 Solutions
Intermediate Accounting - Myaccountinglab - Pearson Etext Access Card Student Value Edition
Ch. 20 - Prob. 20.1QCh. 20 - Prob. 20.2QCh. 20 - If-Converted Method. Does the if-converted...Ch. 20 - Diluted EPS. If all potentially dilutive...Ch. 20 - Diluted EPS. Can diluted earnings per share on...Ch. 20 - Diluted EPS, Convertible Debt, and Preferred...Ch. 20 - Prob. 20.7QCh. 20 - Prob. 20.8QCh. 20 - Prob. 20.9QCh. 20 - EPS Disclosures. is an entity required to present...
Ch. 20 - Prob. 20.11QCh. 20 - Hutchins Company had 200,000 shares of common...Ch. 20 - Prob. 20.2MCCh. 20 - Prob. 20.3MCCh. 20 - Prob. 20.4MCCh. 20 - Refer to the information about Hutchins Company in...Ch. 20 - Prob. 20.6MCCh. 20 - Prob. 20.1BECh. 20 - Prob. 20.2BECh. 20 - Computing Income for Basic EPS. Russo Watches, Ltd...Ch. 20 - Prob. 20.4BECh. 20 - Compute Weighted-Average Number of Shares...Ch. 20 - Compute Weighted-Average Number of Shares...Ch. 20 - Prob. 20.7BECh. 20 - Prob. 20.8BECh. 20 - Prob. 20.9BECh. 20 - Prob. 20.10BECh. 20 - Prob. 20.11BECh. 20 - Computing Basic and Diluted EPS, Options. Nicks...Ch. 20 - Computing Diluted EPS, Convertible Debt. Axelon...Ch. 20 - Computing Basic and Diluted EPS, Preferred Stock....Ch. 20 - Computing Weighted-Average Number of Common Shares...Ch. 20 - Prob. 20.3ECh. 20 - Computing Basic and Diluted EPS, Convertible...Ch. 20 - Prob. 20.5ECh. 20 - Computing Basic and Diluted EPS, Convertible Bonds...Ch. 20 - Computing Basic and Diluted EPS, Convertible Bonds...Ch. 20 - Computing Basic and Diluted EPS, Convertible...Ch. 20 - Computing Basic and Diluted EPS, Options,...Ch. 20 - Computing Basic and Diluted EPS, Convertible...Ch. 20 - Computing Basic and Diluted EPS, Convertible...Ch. 20 - Prob. 20.12ECh. 20 - Prob. 20.1PCh. 20 - Prob. 20.2PCh. 20 - Computing Basic and Diluted EPS. Convertible...Ch. 20 - Prob. 20.4PCh. 20 - Computing Basic and Diluted EPS, Convertible...Ch. 20 - Computing Basic and Diluted EPS, Convertible...Ch. 20 - Prob. 20.7PCh. 20 - Prob. 20.8PCh. 20 - Computing Basic and Diluted EPS, Convertible...Ch. 20 - Prob. 1JCCh. 20 - Prob. 1FSACCh. 20 - Prob. 1SSCCh. 20 - Basis for Conclusions Case 1: Antidilutive...Ch. 20 - Basis for Conclusions Case 2: Treasury Stock...
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