Question :
131. Tanner Corporation had net income of $250,000 and paid dividends : 1234279
131. Tanner Corporation had net income of $250,000 and paid dividends to common stockholders of $50,000 in 2007. The weighted average number of shares outstanding in 2007 was 50,000 shares. Banner Corporation’s common stock is selling for $50 per share on the New York Stock Exchange.Tanner Corporation’s price-earnings ratio is A. 10 times.B. 5 times.C. 2 times.D. 8 times.
132. A company that is leveraged is one that A. contains debt financing.B. contains equity financing.C. has a high current ratio.D. has a high earnings per share.
133. The following information pertains to Jantsen Company. Assume that all balance sheet amounts represent both average and ending balance figures. Assume that all sales were on credit.
Assets
Cash and short-term investments $ 40,000
Accounts receivable (net) 25,000
Inventory 20,000
Property, plant and equipment 210,000
Total Assets$295,000
Liabilities and Stockholders’ Equity
Current liabilities 85,000
Long-term liabilities 85,000
Stockholders’ equity-common 150,000
Total Liabilities and stockholders’ equity$295,000
Income Statement
Sales $ 85,000
Cost of goods sold 45,000
Gross margin 40,000
Operating expenses 20,000
Net income$ 20,000
Number of shares of common stock 6,000000
Market price of common stock $20
Dividends per share .90
Cash provided by operations $30,000
What is the current ratio for this company? Round your answer to one decimal point. A. .60B. 1.16C. .80D. 1.42
134. The following information pertains to Jantsen Company. Assume that all balance sheet amounts represent both average and ending balance figures. Assume that all sales were on credit.Assets
Cash and short-term investments $ 40,000
Accounts receivable (net) 25,000
Inventory 20,000
Property, plant and equipment 210,000
Total Assets$295,000
Liabilities and Stockholders’ Equity
Current liabilities $ 60,000
Long-term liabilities 85,000
Stockholders’ equity-common 150,000
Total Liabilities and stockholders’ equity$295,000
Income Statement
Sales $ 85,000
Cost of goods sold 45,000
Gross margin 40,000
Operating expenses 20,000
Net income$ 20,000
Number of shares of common stock 6,000000
Market price of common stock $20
Dividends per share .90
Cash provided by operations $30,000
What is the receivable turnover for this company? Round your answer to one decimal point. A. 3.4 timesB. 2.8 timesC. 2 timesD. 3 times
135. The following information pertains to Jantsen Company. Assume that all balance sheet amounts represent both average and ending balance figures. Assume that all sales were on credit.
Assets
Cash and short-term investments $ 40,000
Accounts receivable (net) 25,000
Inventory 20,000
Property, plant and equipment 210,000
Total Assets$295,000
Liabilities and Stockholders’ Equity
Current liabilities 85,000
Long-term liabilities 85,000
Stockholders’ equity-common 150,000
Total Liabilities and stockholders’ equity$295,000
Income Statement
Sales $ 85,000
Cost of goods sold 45,000
Gross margin 40,000
Operating expenses 20,000
Net income$ 20,000
Number of shares of common stock 6,000000
Market price of common stock $20
Dividends per share .90
Cash provided by operations $30,000
What is the inventory turnover for this company? Round your answer to one decimal point. A. .44 timesB. 2.25 timesC. 2 timesD. 1 times
136. The following information pertains to Jantsen Company. Assume that all balance sheet amounts represent both average and ending balance figures. Assume that all sales were on credit.
Assets
Cash and short-term investments $ 40,000
Accounts receivable (net) 25,000
Inventory 20,000
Property, plant and equipment 210,000
Total Assets$295,000
Liabilities and Stockholders’ Equity
Current liabilities 85,000
Long-term liabilities 85,000
Stockholders’ equity-common 150,000
Total Liabilities and stockholders’ equity$295,000
Income Statement
Sales $ 85,000
Cost of goods sold 45,000
Gross margin 40,000
Operating expenses 20,000
Net income$ 20,000
Number of shares of common stock 6,000000
Market price of common stock $20
Dividends per share .90
Cash provided by operations $30,000
What is the return on assets for this company? Round your answer to one decimal point. A. 11.5%B. 10.5%C. 26.7%D. 6.8%
137. The following information pertains to Jantsen Company. Assume that all balance sheet amounts represent both average and ending balance figures. Assume that all sales were on credit.
Assets
Cash and short-term investments $ 40,000
Accounts receivable (net) 25,000
Inventory 20,000
Property, plant and equipment 210,000
Total Assets$295,000
Liabilities and Stockholders’ Equity
Current liabilities 85,000
Long-term liabilities 85,000
Stockholders’ equity-common 150,000
Total Liabilities and stockholders’ equity$295,000
Income Statement
Sales $ 85,000
Cost of goods sold 45,000
Gross margin 40,000
Operating expenses 20,000
Net income$ 20,000
Number of shares of common stock 6,000000
Market price of common stock $20
Dividends per share .90
Cash provided by operations $30,000
What is the profit margin for this company? Round your answer to one decimal point. A. 23.5%B. 18.75%C. 42.86%D. 15.0%
138. The following information pertains to Jantsen Company. Assume that all balance sheet amounts represent both average and ending balance figures. Assume that all sales were on credit.
Assets
Cash and short-term investments $ 40,000
Accounts receivable (net) 25,000
Inventory 20,000
Property, plant and equipment 210,000
Total Assets$295,000
Liabilities and Stockholders’ Equity
Current liabilities 85,000
Long-term liabilities 85,000
Stockholders’ equity-common 150,000
Total Liabilities and stockholders’ equity$295,000
Income Statement
Sales $ 85,000
Cost of goods sold 45,000
Gross margin 40,000
Operating expenses 20,000
Net income$ 20,000
Number of shares of common stock 6,000000
Market price of common stock $20
Dividends per share .90
Cash provided by operations $30,000
What is the return on common stockholders’ equity for this company? Round your answer to one decimal point. A. 5.0%B. 13.3%C. 53.3%D. 23.3%
139. The following information pertains to Jantsen Company. Assume that all balance sheet amounts represent both average and ending balance figures. Assume that all sales were on credit.
Assets
Cash and short-term investments $ 40,000
Accounts receivable (net) 25,000
Inventory 20,000
Property, plant and equipment 210,000
Total Assets$295,000
Liabilities and Stockholders’ Equity
Current liabilities 85,000
Long-term liabilities 85,000
Stockholders’ equity-common 150,000
Total Liabilities and stockholders’ equity$295,000
Income Statement
Sales $ 85,000
Cost of goods sold 45,000
Gross margin 40,000
Operating expenses 20,000
Net income$ 20,000
Number of shares of common stock 6,000000
Market price of common stock $20
Dividends per share .90
Cash provided by operations $30,000
What is the price earnings ratio for this company? Round your answer to one decimal point. A. 8 timesB. 2.5 timesC. 4 timesD. 6 times
140. The following information pertains to Tanzi Company. Assume that all balance sheet amounts represent both average and ending balance figures. Assume that all sales were on credit.
Assets
Cash and short-term investments $ 40,000
Accounts receivable (net) 30,000
Inventory 25,000
Property, plant and equipment 215,000
Total Assets$310,000
Liabilities and Stockholders’ Equity
Current liabilities 60,000
Long-term liabilities 95,000
Stockholders’ equity-common 155,000
Total Liabilities and stockholders’ equity$310,000
Income Statement
Sales $ 90,000
Cost of goods sold 45,000
Gross margin 45,000
Operating expenses 20,000
Net income$ 25,000
Number of shares of common stock 6,000000
Market price of common stock $20
Dividends per share 1.00
Cash provided by operations $40,000
What is the rate earned on total assets for this company? A. 8.1%B. 6.8%C. 10.5%D. 16.1%
