Question :
71. Grogan Inc.Grogan Inc. had the following information available from its : 1291644
71. Grogan Inc.Grogan Inc. had the following information available from its 2011 and 2012 financial statements:
Balance sheet information:
2011
2012
Current assets
$ 15,000
$ 20,000
Long-term assets
107,000
207,000
Total assets
$122,000
$227,000
Current liabilities
$ 16,000
$ 11,500
Long-term liabilities
40,000
60,000
Total liabilities
$ 56,000
$ 71,500
Common stock
$ 30,000
$71,750
Retained earnings
36,000
83,750
Total stockholders’ equity
$ 66,000
$155,500
Income statement information:
Income before interest and taxes
$ 50,000
$105,000
Interest expense
4,000
6,000
Tax expense
10,000
26,250
Net income
$ 36,000
$72,750
Other information:
Dividends paid to stockholders
$ 0
$25,000
Average income tax rate
20%
25%
Net cash flows from operations
$25,000
$75,000
Cash paid for acquisitions
$10,000
$85,000
Refer to the Grogan Inc. information above. Grogan’s times-interest-earned ratio for 2012 is: (round to two decimal places) A. 12.13.B. 16.50.C. 17.50.D. 12.50.
72. Grogan Inc.Grogan Inc. had the following information available from its 2011 and 2012 financial statements:
Balance sheet information:
2011
2012
Current assets
$ 15,000
$ 20,000
Long-term assets
107,000
207,000
Total assets
$122,000
$227,000
Current liabilities
$ 16,000
$ 11,500
Long-term liabilities
40,000
60,000
Total liabilities
$ 56,000
$ 71,500
Common stock
$ 30,000
$71,750
Retained earnings
36,000
83,750
Total stockholders’ equity
$ 66,000
$155,500
Income statement information:
Income before interest and taxes
$ 50,000
$105,000
Interest expense
4,000
6,000
Tax expense
10,000
26,250
Net income
$ 36,000
$72,750
Other information:
Dividends paid to stockholders
$ 0
$25,000
Average income tax rate
20%
25%
Net cash flows from operations
$25,000
$75,000
Cash paid for acquisitions
$10,000
$85,000
Refer to the Grogan Inc. information above. Grogan’s ratio cash flow from operations to capital expenditures for 2012 is: (round to two decimal places) A. 170.00%.B. 58.82%.C. 250.00%D. 88.24%.
73. Grogan Inc.Grogan Inc. had the following information available from its 2011 and 2012 financial statements:
Balance sheet information:
2011
2012
Current assets
$ 15,000
$ 20,000
Long-term assets
107,000
207,000
Total assets
$122,000
$227,000
Current liabilities
$ 16,000
$ 11,500
Long-term liabilities
40,000
60,000
Total liabilities
$ 56,000
$ 71,500
Common stock
$ 30,000
$71,750
Retained earnings
36,000
83,750
Total stockholders’ equity
$ 66,000
$155,500
Income statement information:
Income before interest and taxes
$ 50,000
$105,000
Interest expense
4,000
6,000
Tax expense
10,000
26,250
Net income
$ 36,000
$72,750
Other information:
Dividends paid to stockholders
$ 0
$25,000
Average income tax rate
20%
25%
Net cash flows from operations
$25,000
$75,000
Cash paid for acquisitions
$10,000
$85,000
Refer to the Grogan Inc. information above. Grogan’s return on assets (ROA) ratio for 2012 is: (round to two decimal places) A. 44.27%.B. 35.05%.C. 15.04%.D. 45.13%.
74. Grogan Inc.Grogan Inc. had the following information available from its 2011 and 2012 financial statements:
Balance sheet information:
2011
2012
Current assets
$ 15,000
$ 20,000
Long-term assets
107,000
207,000
Total assets
$122,000
$227,000
Current liabilities
$ 16,000
$ 11,500
Long-term liabilities
40,000
60,000
Total liabilities
$ 56,000
$ 71,500
Common stock
$ 30,000
$71,750
Retained earnings
36,000
83,750
Total stockholders’ equity
$ 66,000
$155,500
Income statement information:
Income before interest and taxes
$ 50,000
$105,000
Interest expense
4,000
6,000
Tax expense
10,000
26,250
Net income
$ 36,000
$72,750
Other information:
Dividends paid to stockholders
$ 0
$25,000
Average income tax rate
20%
25%
Net cash flows from operations
$25,000
$75,000
Cash paid for acquisitions
$10,000
$85,000
Refer to the Grogan Inc. information above. Grogan’s return on common stockholders’ equity (ROCSE) ratio for 2012 is: (round to two decimal places) A. 43.12%.B. 72.23%.C. 46.78%.D. 65.69%.
75. Grogan Inc.Grogan Inc. had the following information available from its 2011 and 2012 financial statements:
Balance sheet information:
2011
2012
Current assets
$ 15,000
$ 20,000
Long-term assets
107,000
207,000
Total assets
$122,000
$227,000
Current liabilities
$ 16,000
$ 11,500
Long-term liabilities
40,000
60,000
Total liabilities
$ 56,000
$ 71,500
Common stock
$ 30,000
$71,750
Retained earnings
36,000
83,750
Total stockholders’ equity
$ 66,000
$155,500
Income statement information:
Income before interest and taxes
$ 50,000
$105,000
Interest expense
4,000
6,000
Tax expense
10,000
26,250
Net income
$ 36,000
$72,750
Other information:
Dividends paid to stockholders
$ 0
$25,000
Average income tax rate
20%
25%
Net cash flows from operations
$25,000
$75,000
Cash paid for acquisitions
$10,000
$85,000
Refer to the Grogan Inc. information above. Grogan had an average of 7,000 shares of common stock outstanding during 2012. The company’s earnings per share for 2012 is: (round to two decimal places) A. $ 6.82.B. $15.00.C. $10.39.D. $ 5.14.
76. Grogan Inc.Grogan Inc. had the following information available from its 2011 and 2012 financial statements:
Balance sheet information:
2011
2012
Current assets
$ 15,000
$ 20,000
Long-term assets
107,000
207,000
Total assets
$122,000
$227,000
Current liabilities
$ 16,000
$ 11,500
Long-term liabilities
40,000
60,000
Total liabilities
$ 56,000
$ 71,500
Common stock
$ 30,000
$71,750
Retained earnings
36,000
83,750
Total stockholders’ equity
$ 66,000
$155,500
Income statement information:
Income before interest and taxes
$ 50,000
$105,000
Interest expense
4,000
6,000
Tax expense
10,000
26,250
Net income
$ 36,000
$72,750
Other information:
Dividends paid to stockholders
$ 0
$25,000
Average income tax rate
20%
25%
Net cash flows from operations
$25,000
$75,000
Cash paid for acquisitions
$10,000
$85,000
Refer to the Grogan Inc. information above. Grogan had an average of 7,000 shares of common stock outstanding during 2012. At the end of the year, the market price per share was $100. The company’s price earnings (P/E) ratio for 2012 is: (round to two decimal places) A. 9.62 to 1.B. 6.67 to 1.C. 14.66 to 1.D. 19.44 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
