The balance sheet for Bearing Industries Inc. at the end of the current fiscal year indicated the following: Bonds payable, 8% $1,100,000 Preferred $10 stock, $50 par 33,000 Common stock, $8 par 84,480 Income before income tax was $132,000, and income taxes were $19,800, for the current year. Cash dividends paid on common stock during the current year totaled $18,480. The common stock was selling for $70 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 %
The balance sheet for Bearing Industries Inc. at the end of the current fiscal year indicated the following: Bonds payable, 8% $1,100,000 Preferred $10 stock, $50 par 33,000 Common stock, $8 par 84,480 Income before income tax was $132,000, and income taxes were $19,800, for the current year. Cash dividends paid on common stock during the current year totaled $18,480. The common stock was selling for $70 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 %
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 12RE: Given the following year-end information, compute Greenwood Corporations basic and diluted earnings...
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The balance sheet for Bearing Industries Inc. at the end of the current fiscal year indicated the following:
| Bonds payable, 8% | $1,100,000 |
| 33,000 | |
| Common stock, $8 par | 84,480 |
Income before income tax was $132,000, and income taxes were $19,800, for the current year. Cash dividends paid on common stock during the current year totaled $18,480. The common stock was selling for $70 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 | % |
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