Question : 117.Donner Corporation had net income of $400,000 and paid dividends : 1312000

 

 

117.Donner Corporation had net income of $400,000 and paid dividends to common stockholders of $40,000 in 2013. The weighted average number of shares outstanding in 2013 was 50,000 shares. Donner Corporation’s common stock is selling for $50 per share on the New York Stock Exchange. Donner Corporation’s payout ratio for 2013 is

a.$8 per share.

b.10%.

c.12.5%.

d.20%.

 

 

118.Town Company reported the following on its income statement:

Income before income taxes$750,000

Income tax expense  150,000

Net income$600,000

An analysis of the income statement revealed that interest expense was $100,000. Town Company’s times interest earned was

a.5 times.

b.8.5 times.

c.6 times.

d.7.5 times.

 

 

119.The following information pertains to Sampson 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$  45,000

Accounts receivable (net)25,000

Inventory20,000

Property, plant and equipment  210,000

Total Assets$300,000

 

Liabilities and Stockholders’ Equity

Current liabilities$  50,000

Long-term liabilities90,000

Stockholders’ equity—common  160,000

Total Liabilities and Stockholders’ Equity$300,000

 

Income Statement

Sales$  120,000

Cost of goods sold    66,000

Gross profit54,000

Operating expenses   30,000

Net income$  24,000

 

Number of shares of common stock6,000

Market price of common stock$20

Dividends per share.50

 

MC 119.(Cont.)

 

What is the current ratio for Sampson?

a.1.80

b.1.30

c.1.40

d..64

 

 

120.The following information pertains to Sampson 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$  45,000

Accounts receivable (net)35,000

Inventory20,000

Property, plant and equipment  210,000

Total Assets$310,000

 

Liabilities and Stockholders’ Equity

Current liabilities$  50,000

Long-term liabilities90,000

Stockholders’ equity—common  160,000

Total Liabilities and Stockholders’ Equity$310,000

 

Income Statement

Sales$  105,000

Cost of goods sold    66,000

Gross profit39,000

Operating expenses   30,000

Net income$  9,000

 

Number of shares of common stock6,000

Market price of common stock$20

Dividends per share.50

 

What is the receivables turnover for Sampson?

a.1.5 times

b.1.1 times

c.3.0 times

d.12.9 times

 

 

121.The following information pertains to Sampson 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$  45,000

Accounts receivable (net)25,000

Inventory11,000

Property, plant and equipment  210,000

Total Assets$291,000

 

Liabilities and Stockholders’ Equity

Current liabilities$  50,000

Long-term liabilities90,000

Stockholders’ equity—common  151,000

Total Liabilities and Stockholders’ Equity$291,000

 

Income Statement

Sales$  120,000

Cost of goods sold   55,000

Gross profit65,000

Operating expenses   30,000

Net income$  35,000

 

Number of shares of common stock6,000

Market price of common stock$20

Dividends per share.50

 

What is the inventory turnover for Sampson?

a.3.2 times

b.5 times

c.10.9 times

d.0.20 times

 

 

122.The following information pertains to Sampson 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$  45,000

Accounts receivable (net)25,000

Inventory20,000

Property, plant and equipment  210,000

Total Assets$300,000

 

Liabilities and Stockholders’ Equity

Current liabilities$  50,000

Long-term liabilities90,000

Stockholders’ equity—common  160,000

Total Liabilities and Stockholders’ Equity$300,000

 

MC 122.(Cont.)

Income Statement

Sales$  120,000

Cost of goods sold    66,000

Gross profit54,000

Operating expenses   30,000

Net income$  24,000

 

Number of shares of common stock6,000

Market price of common stock$20

Dividends per share.50

 

What is the return on assets for Sampson?

a.8.0%

b.7.0%

c.18.0%

d.16.0%

 

 

123.The following information pertains to Sampson 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$  45,000

Accounts receivable (net)25,000

Inventory20,000

Property, plant and equipment  310,000

Total Assets$400,000

 

Liabilities and Stockholders’ Equity

Current liabilities$  50,000

Long-term liabilities90,000

Stockholders’ equity—common  260,000

Total Liabilities and Stockholders’ Equity$400,000

 

Income Statement

Sales$  300,000

Cost of goods sold    66,000

Gross profit234,000

Operating expenses   30,000

Net income$  204,000

 

Number of shares of common stock6,000

Market price of common stock$20

Dividends per share.50

 

MC 123.(Cont.)

 

What is the profit margin for Sampson?

a.115%

b.28.2%

c.68%

d.51%

 

 

124.The following information pertains to Sampson 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$  45,000

Accounts receivable (net)25,000

Inventory20,000

Property, plant and equipment  230,000

Total Assets$320,000

 

Liabilities and Stockholders’ Equity

Current liabilities$  50,000

Long-term liabilities90,000

Stockholders’ equity—common  180,000

Total Liabilities and Stockholders’ Equity$320,000

 

Income Statement

Sales$  150,000

Cost of goods sold    66,000

Gross profit84,000

Operating expenses   30,000

Net income$  54,000

 

Number of shares of common stock6,000

Market price of common stock$20

Dividends per share.50

 

What is the return on common stockholders’ equity for Sampson?

a.30%

b.46.7%

c.36%

d.16.9%

 

 

125.The following information pertains to Sampson 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$  45,000

Accounts receivable (net)25,000

Inventory20,000

Property, plant and equipment  210,000

Total Assets$300,000

 

Liabilities and Stockholders’ Equity

Current liabilities$  50,000

Long-term liabilities90,000

Stockholders’ equity—common  160,000

Total Liabilities and Stockholders’ Equity$300,000

 

Income Statement

Sales$  120,000

Cost of goods sold    66,000

Gross profit54,000

Operating expenses   18,000

Net income$  36,000

 

Number of shares of common stock6,000

Market price of common stock$33

Dividends per share.50

 

What is the price-earnings ratio for Sampson?

a.5.5 times

b.1.1 times

c.6 times

d.6.6 times

 

 

126.The following information pertains to Eura 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

Inventory25,000

Property, plant and equipment  215,000

Total Assets$310,000

Liabilities and Stockholders’ Equity

Current liabilities$  60,000

Long-term liabilities75,000

Stockholders’ equity—common  175,000

Total Liabilities and Stockholders’ Equity$310,000

MC 126.(Cont.)

Income Statement

Sales$  90,000

Cost of goods sold    45,000

Gross profit45,000

Operating expenses    25,000

Net income$  20,000

Number of shares of common stock5,000

Market price of common stock$22

Dividends per share1.00

 

What is the return on assets for Eura?

a.4.8%

b.9.7%

c.6.5%

d.12.9%

 

 

 

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