Question :
71. Grogan Inc. had the following information available from its 2007 : 1295724
71. Grogan Inc. had the following information available from its 2007 and 2008 financial statements:
Balance sheet information:
2007
2008
Current assets
$ 30,000
$ 80,000
Long-term assets
100,000
200,000
Total assets
$130,000
$280,000
Current liabilities
$ 15,000
$ 10,000
Long-term liabilities
30,000
40,000
Total liabilities
$ 45,000
$ 50,000
Common stock
$ 60,000
$100,000
Retained earnings
25,000
130,000
Total stockholders’ equity
$ 85,000
$230,000
Income statement information:
Income before interest and taxes
$ 30,000
$200,000
Interest expense
3,000
8,000
Tax expense
2,000
50,000
Net income
$ 25,000
$142,000
Other information:
Dividends paid to stockholders
$ 0
$ 37,000
Average income tax rate
23%
26%
Net cash flows from operations
$ 25,000
$150,000
Cash paid for acquisitions
$ 10,000
$ 75,000
Refer to the Grogan Inc information above. Grogan’s times-interest-earned ratio for 2008 is: (round to two decimal places) A. 17.75B. 19.38C. 25.00D. 18.75
72. Grogan Inc. had the following information available from its 2007 and 2008 financial statements:
Balance sheet information:
2007
2008
Current assets
$ 30,000
$ 80,000
Long-term assets
100,000
200,000
Total assets
$130,000
$280,000
Current liabilities
$ 15,000
$ 10,000
Long-term liabilities
30,000
40,000
Total liabilities
$ 45,000
$ 50,000
Common stock
$ 60,000
$100,000
Retained earnings
25,000
130,000
Total stockholders’ equity
$ 85,000
$230,000
Income statement information:
Income before interest and taxes
$ 30,000
$200,000
Interest expense
3,000
8,000
Tax expense
2,000
50,000
Net income
$ 25,000
$142,000
Other information:
Dividends paid to stockholders
$ 0
$ 37,000
Average income tax rate
23%
26%
Net cash flows from operations
$ 25,000
$150,000
Cash paid for acquisitions
$ 10,000
$ 75,000
Refer to the Grogan Inc information above. Grogan’s cash flow from operations to capital expenditures ratio for 2008 is: (round to two decimal places) A. 249.33%B. 150.67%C. 200.00%D. 50.00%
73. Grogan Inc. had the following information available from its 2007 and 2008 financial statements:
Balance sheet information:
2007
2008
Current assets
$ 30,000
$ 80,000
Long-term assets
100,000
200,000
Total assets
$130,000
$280,000
Current liabilities
$ 15,000
$ 10,000
Long-term liabilities
30,000
40,000
Total liabilities
$ 45,000
$ 50,000
Common stock
$ 60,000
$100,000
Retained earnings
25,000
130,000
Total stockholders’ equity
$ 85,000
$230,000
Income statement information:
Income before interest and taxes
$ 30,000
$200,000
Interest expense
3,000
8,000
Tax expense
2,000
50,000
Net income
$ 25,000
$142,000
Other information:
Dividends paid to stockholders
$ 0
$ 37,000
Average income tax rate
23%
26%
Net cash flows from operations
$ 25,000
$150,000
Cash paid for acquisitions
$ 10,000
$ 75,000
Refer to the Grogan Inc information above. Grogan’s return on assets (ROA) ratio for 2008 is: (round to two decimal places) A. 72.16%B. 73.17%C. 69.27%D. 50.71%
74. Grogan Inc. had the following information available from its 2007 and 2008 financial statements:
Balance sheet information:
2007
2008
Current assets
$ 30,000
$ 80,000
Long-term assets
100,000
200,000
Total assets
$130,000
$280,000
Current liabilities
$ 15,000
$ 10,000
Long-term liabilities
30,000
40,000
Total liabilities
$ 45,000
$ 50,000
Common stock
$ 60,000
$100,000
Retained earnings
25,000
130,000
Total stockholders’ equity
$ 85,000
$230,000
Income statement information:
Income before interest and taxes
$ 30,000
$200,000
Interest expense
3,000
8,000
Tax expense
2,000
50,000
Net income
$ 25,000
$142,000
Other information:
Dividends paid to stockholders
$ 0
$ 37,000
Average income tax rate
23%
26%
Net cash flows from operations
$ 25,000
$150,000
Cash paid for acquisitions
$ 10,000
$ 75,000
Refer to the Grogan Inc information above. Grogan’s return on common stockholders’ equity (ROCSE) ratio for 2008 is: (round to two decimal places) A. 177.50%B. 76.92%C. 61.74%D. 90.16%
75. Grogan Inc. had the following information available from its 2007 and 2008 financial statements:
Balance sheet information:
2007
2008
Current assets
$ 30,000
$ 80,000
Long-term assets
100,000
200,000
Total assets
$130,000
$280,000
Current liabilities
$ 15,000
$ 10,000
Long-term liabilities
30,000
40,000
Total liabilities
$ 45,000
$ 50,000
Common stock
$ 60,000
$100,000
Retained earnings
25,000
130,000
Total stockholders’ equity
$ 85,000
$230,000
Income statement information:
Income before interest and taxes
$ 30,000
$200,000
Interest expense
3,000
8,000
Tax expense
2,000
50,000
Net income
$ 25,000
$142,000
Other information:
Dividends paid to stockholders
$ 0
$ 37,000
Average income tax rate
23%
26%
Net cash flows from operations
$ 25,000
$150,000
Cash paid for acquisitions
$ 10,000
$ 75,000
Refer to the Grogan Inc information above. Grogan had an average of 5,000 shares of common stock outstanding during 2008. The company’s earnings per share for 2008 is: (round to two decimal places) A. $26.00B. $46.00C. $28.40D. $20.00
76. Grogan Inc. had the following information available from its 2007 and 2008 financial statements:
Balance sheet information:
2007
2008
Current assets
$ 30,000
$ 80,000
Long-term assets
100,000
200,000
Total assets
$130,000
$280,000
Current liabilities
$ 15,000
$ 10,000
Long-term liabilities
30,000
40,000
Total liabilities
$ 45,000
$ 50,000
Common stock
$ 60,000
$100,000
Retained earnings
25,000
130,000
Total stockholders’ equity
$ 85,000
$230,000
Income statement information:
Income before interest and taxes
$ 30,000
$200,000
Interest expense
3,000
8,000
Tax expense
2,000
50,000
Net income
$ 25,000
$142,000
Other information:
Dividends paid to stockholders
$ 0
$ 37,000
Average income tax rate
23%
26%
Net cash flows from operations
$ 25,000
$150,000
Cash paid for acquisitions
$ 10,000
$ 75,000
Refer to the Grogan Inc information above. Grogan had an average of 5,000 shares of common stock outstanding during 2008. At the end of the year, the market price per share was $100. The company’s price earnings (P/E) ratio for 2008 is: (round to two decimal places) A. 3.52 to 1B. 50 to 1C. 4 to 1D. 3.85 to 1
77. Which ratio gives an indication of how investors believe a company’s stock will perform in the future compared to other companies? A. Return on stockholders’ equityB. Earnings per shareC. Price earnings (P/E)D. Return on assets
