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

 

 

 

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