1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
kodGreya [7K]
2 years ago
6

The income statement for the Carolina Service Company for the year ended December 31, 2017, appears below. Includes $25,000 of i

nterest expense and $20,000 of income tax expense. Additional information: Common stock outstanding on January 1, 2017, was 50,000 shares. On July 1, 2017, 10,000 more shares were issued. The market price of Carolina's stock was $22 at the end of 2017. Cash dividends of $35,000 were paid, $5,000 of which were paid to preferred stockholders. Compute the following ratios for 2017: (a) Earnings per share. (b) Price-earnings. (c) Times interest earned. (a) Earnings per share (b) Price-earnings (c) Times interest earned
Business
1 answer:
KATRIN_1 [288]2 years ago
6 0

Answer:

Earning per share = 2.166

Price earning = 10.15

Times interest earned = 5.4

Explanation:

Common stock outstanding at end =  Shares outstanding  (open) +Shares issued.

                                         = 50000+10000= 60000 outstanding shares (at end)

a.)we know that earning per share =<u> net income - preference dividend</u>

                                                       Common shares outstanding at end

                                          =  ( N#1)    <u>135000  -      5000</u>

                                                                 60000

                                          =  2.166 earning per share

(N#1):To calculate net income we will need statement of changes in equity,Suppose par value of shares  = $10,

we have Beginning equity + net income - Dividend = Equity (end)

      Net Income = 600000+35000-500000

    Net income = 135000

b.) Price earning =  <u>Market value per share </u>  =   <u>22   </u>    =  10.15

                                Earning per share                2.166

c.) Times interest earned =<u> Income before interest and taxes</u> or EBIT

                                              Interest expense

  EBIT = 135000

                                  =     135000 /  25000  = 5.4 times

You might be interested in
Andy deposited $3,000 this morning into an account that pays 5 percent interest, compounded annually. Barb also deposited $3,000
fiasKO [112]

Answer:

Barb will earn interest on interest yes because she don't retire the interest

Explanation:

a. Barb will earn compound interest both will aearn compound interest.

b. Barb will earn more interest the first year than Andy both are compound annualy. The first year both will earn the same amount of interest.

c. Barb will earn interest on interest yes because she don't retire the interest and reinvest it.

Compound interest (or compounding interest) is interest calculated on the initial principal, which also includes all of the accumulated interest of previous periods of a deposit or loan

d. After five years, Andy will have more money in his account than Barb. No because he spend his interest.

e. Andy will earn more interest the first year than Barb both are compound annualy. The first year both will earn the same amount of interest.

3 0
3 years ago
13. Which of the following is NOT used to describe the state of an economy?
Anni [7]

Answer:C.TINSTAAFL Rating

Explanation:

7 0
3 years ago
What is an example of statistical reasoning?
zubka84 [21]

Answer/Explanation:

Statistics educators often talk about their desired learning goals for students, and invariably, refer to outcomes such as being statistically literate, thinking statistically, and using good statistical reasoning. Despite the frequent reference to these outcomes and terms, there have been no agreed upon definitions or distinctions. Therefore, the following definitions were proposed by Garfield (2005 and have been elaborated in Garfield and Ben-Zvi (2008).

Statistical literacy is regarded as a key ability expected of citizens in information-laden societies, and is often touted as an expected outcome of schooling and as a necessary component of adults’ numeracy and literacy. Statistical literacy involves understanding and using the basic language and tools of statistics: knowing what basic statistical terms mean, understanding the use of simple statistical symbols, and recognizing and being able to interpret different representations of data (Garfield 1999; Rumsey 2002; Snell 1999)

5 0
2 years ago
Juniper Company uses a perpetual inventory system. The company purchased $9,750 of merchandise on August 7 with terms 1/10, n/30
kozerog [31]

Answer:

Amount of cash paid on Aug 16 = <u>$8,167.50</u>

Explanation:

As for the information provided the terms of purchase are,

1% discount if payment made within 10 days,

and a total credit period of 30 days without any discount beyond 10 days.

Here, inventory purchased on August 7 = $9,750

Less; Return on 11 August = $1,500

Net Purchases = $8,250

Since payment is made on 16 August that is within 10 days from purchase discount will be received

= $8,250 \times 1% = $82.50

Amount of cash paid on Aug 16 = $8,250 - $82.50 = $8,167.50

8 0
3 years ago
Performing quality assurance is a subprocess of the _____ process of project quality management. a. initiating b. monitoring and
puteri [66]

Answer:

d. executing

Explanation:

Quality Management in Project Management implies the elaboration of a quality plan for the creation of the product, taking into account the scope of the project and the requirements of the interested parties.

This area has three processes, as exposed in the PMBOK Guide prepared by the Project Management Institute (PMI):

Quality management planning

Carrying out quality assurance

Quality control

Quality management planning is placed in the group of planning processes; quality assurance is placed in the execution process group; and quality control is in the group of monitoring and control processes.

The Quality Management deliverables are as follows: quality management plan, process improvement plan, quality metrics, quality checklists, quality control measures, validated changes, and verified deliverables

7 0
3 years ago
Other questions:
  • You are a Group Supervisor working in a Branch within the Operations Section. Who is your immediate supervisor?
    7·1 answer
  • Which of the following statements is definitely true when price is less than average total cost for a firm producing the profit-
    8·1 answer
  • Which choice best describes labor laws passed during the New Deal?
    11·2 answers
  • Kendra’s Quilts makes custom baby quilts embroidered with the baby’s name and date of birth. The company is considering the purc
    10·1 answer
  • Assuming no employees are subject to ceilings for their earnings, Harris Company has the following information for the pay perio
    9·1 answer
  • Regarding risk levels, financial managers should
    13·1 answer
  • Your portfolio is 230 shares of Barden, Inc. The stock currently sells for $93 per share. The company has announced a dividend o
    14·1 answer
  • Smythe Co. makes furniture. The following data are taken from its production plans for the year.
    14·1 answer
  • Coworker: "I have a customer who is very taciturn."
    13·1 answer
  • On August 1, Hanes Co. determines that it cannot collect $150 from a customer. Hanes uses the direct write-off method. Hanes wil
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!