Question :
127.The following information pertains to Eura Company. Assume that all : 1312001
127.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$310,000
Income Statement
Sales$ 135,000
Cost of goods sold 45,000
Gross profit90,000
Operating expenses 25,000
Net income$ 65,000
Number of shares of common stock5,000
Market price of common stock$22
Dividends per share1.00
What is the profit margin for Eura?
a.27.8%
b.51.9%
c.72.2%
d.48.1%
128.The following information pertains to Eura Company. Assume that all balance sheet amounts represent both average and ending balance figures. Assume that all sales were on credit.
Assets
Cash and short-term investments$ 40,000
Accounts receivable (net)30,000
Inventory45,000
Property, plant and equipment 215,000
Total Assets$330,000
Liabilities and Stockholders’ Equity
Current liabilities$ 60,000
Long-term liabilities75,000
Stockholders’ equity—common 195,000
Total Liabilities and Stockholders’ Equity$330,000
Income Statement
Sales$ 90,000
Cost of goods sold 45,000
Gross profit45,000
Operating expenses 30,000
Net income$ 15,000
Number of shares of common stock5,000
Market price of common stock$22
Dividends per share1.00
What is the return on common stockholders’ equity for Eura?
a.4.8%
b.7.7%
c.23.1%
d.46.2%
129.The following information pertains to Eura Company. Assume that all balance sheet amounts represent both average and ending balance figures. Assume that all sales were on credit.
Assets
Cash and short-term investments$ 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$310,000
MC 129.(Cont.)
Income Statement
Sales$ 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$22
Dividends per share1.00
What is the price-earnings ratio for Eura?
a.5 times
b.4.0 times
c.7.3 times
d.5.5 times
130.The following information is available for Compton Company:
2013 2012
Accounts receivable$ 460,000$ 500,000
Inventory 280,000320,000
Net credit sales2,470,0001,400,000
Cost of goods sold1,860,0001,060,000
Net income300,000170,000
The receivables turnover ratio for 2013 is
a.1.6 times.
b.5.4 times.
c.5.1 times.
d.3.9 times.
131.The following information is available for Compton Company:
2013 2012
Accounts receivable$ 360,000$ 400,000
Inventory 340,000420,000
Net credit sales2,470,0001,400,000
Cost of goods sold1,860,0001,060,000
Net income300,000170,000
The inventory turnover ratio for 2013 is
a.6.2 times.
b.4.9 times.
c.5.5 times.
d.4.4 times.
132.The following amounts were taken from the financial statements of Plant Company:
2013 2012
Total assets$800,000$1,000,000
Net sales720,000650,000
Gross profit352,000320,000
Net income126,000117,000
Weighted average number of common shares outstanding90,00090,000
Market price of common stock$35$39
The return on assets ratio for 2013 is
a.16%.
b.14%.
c.32%.
d.28%.
133.The following amounts were taken from the financial statements of Plant Company:
2013 2012
Total assets$800,000$1,000,000
Net sales840,000650,000
Gross profit352,000320,000
Net income155,400117,000
Weighted average number of common shares outstanding90,00090,000
Market price of common stock$35$39
The profit margin ratio for 2013 is
a.19.4%.
b.44.1%.
c.18.5%.
d.10.7%.
134.The following amounts were taken from the financial statements of Plant Company:
2013 2012
Total assets$800,000$1,000,000
Net sales720,000650,000
Gross profit352,000320,000
Net income150,000117,000
Weighted average number of common shares outstanding60,00090,000
Market price of common stock$67.50$39
The price-earnings ratio for 2013 is
a.27 times.
b.45 times.
c.11 times.
d.2.5 times.
135.Star Corporation had net income of $300,000 and paid dividends to common stockholders of $40,000 in 2013. The weighted average number of shares outstanding in 2013 was 50,000 shares. Star Corporation’s common stock is selling for $36 per share on the New York Stock Exchange.
Star Corporation’s price-earnings ratio is
a.5.2 times.
b.6 times.
c.18 times.
d.6.9 times.
136.Star Corporation had net income of $320,000 and paid dividends to common stockholders of $80,000 in 2013. The weighted average number of shares outstanding in 2013 was 50,000 shares. Star Corporation’s common stock is selling for $30 per share on the New York Stock Exchange.
Star Corporation’s payout ratio for 2013 is
a.16%.
b.25%.
c.9%.
d.$4 per share.
