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%
