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
faltersainse [42]
3 years ago
7

Here is the income statement for Windsor, Inc. WINDSOR, INC. Income Statement For the Year Ended December 31, 2022 Sales revenue

$420,100 Cost of goods sold 235,100 Gross profit 185,000 Expenses (including $16,100 interest and $21,900 income taxes) 72,500 Net income $ 112,500 Additional information: 1. Common stock outstanding January 1, 2022, was 22,400 shares, and 36,600 shares were outstanding at December 31, 2022. 2. The market price of Windsor stock was $12 in 2022. 3. Cash dividends of $22,600 were paid, $4,600 of which were to preferred stockholders. Compute the following measures for 2022. (Round all answers to 2 decimal places, e.g. 1.83 or 2.51%) (a) Earnings per share $enter earnings per share in dollars 3.66 (b) Price-earnings ratio enter price-earnings ratio in times 3.28 times (c) Payout ratio enter payout ratio in percentages 19.8 % (d) Times interest earned enter times interest earned 9.35 times
Business
1 answer:
astraxan [27]3 years ago
3 0

Answer:

a) Earning per share $3.66

b) Price earning ratio 3.28 times

c) Payout ratio 20.09%

d) Time Interest earned 9.35 times

Explanation:

A) Calculation for Earnings per share

First step is to calculate the Weighted Average number of common shares outstanding using this formula.

Weighted Average number of common shares outstanding = (Number of common shares outstanding in the beginning + Number of common shares outstanding in the end)/2

Let plug in the formula

Weighted Average number of common shares outstanding= (22,400 + 36,600)/2

Weighted Average number of common shares outstanding= 29,500

Now let calculate the Earnings per share using this formula

Earnings per share = (Net income – Preferred stock dividend)/Weighted Average number of common shares outstanding

Let plug in the formula

Earnings per share= (112,500 – 4,600)/29,500

Earnings per share= 107,900/29,500

Earnings per share= $3.66

B) Calculation for Price-earnings ratio enter price-earnings ratio in times

Using this formula

Price earnings ratio = Market price of 1 common share/Earnings per share

Let plug in the formula

Price earnings ratio= 12/3.66

Price earnings ratio= 3.28 times

C) Calculation for Payout ratio enter payout ratio in percentages using this formula

Payout ratio = Cash dividends/Net income

Let plug in the formula

Payout ratio= 22,600/112,500

Payout ratio= 20.09%

D) Calculation for Times interest earned enter times interest earned using this formula

Times interest earned = (Net income + Interest expense + Tax expense)/Interest expense

Let plug in the formula

Times interest earned= (112,500 + 16,100 + 21,900)/16,100

Times interest earned= 150,500/16,100

Times interest earned= 9.35 times

Therefore:

a) Earning per share $3.66

b) Price earning ratio 3.28 times

c) Payout ratio 20.09%

d) Time Interest earned 9.35 times

You might be interested in
Which conclusion is accurately reflected in the data table? (5 points)
Anna11 [10]

Answer:

As your level of education increases, your income potential also increases.

Explanation:

As per the graph, the highest earners are holders of a doctoral degree, professional degrees, and master degrees. These are highly educated individuals.

At the bottom end, the lowest earners are those with high school diplomas and below.

The graphs clearly illustrate that acquiring a high level of education increases the probability of increased earning.

6 0
3 years ago
what circumstances could impact a business ability to share their profits with non profit organizations​
Juli2301 [7.4K]

A non- profit organisation cannot gain profit from the business.

Explanation:

In case of non profit organisation the main aim is to help with health care as well as education. Non- profit organisation is important because it helps in building healthy communities and it also helps in maintaining mobility and stability.They help in strengthening communities as well as non profit leader acted as people's voice.

The circumstances that impact a business ability to share their profits with non profit organisations are the non profit organisation acts as a pulse for the community, non profit organisation helps to develop corporate culture, the volunteers grow as organisation grows.

8 0
3 years ago
a While troubleshooting a problem, you realize the problem is caused by a complex series of issues that will affect a large numb
Jet001 [13]

The next step to undertake in the troubleshooting process is:

  • To document the incident

<h3>What is Troubleshooting?</h3>

This refers to the various ways through which a person assesses a problem and eliminates them.

In the troubleshooting process, we can see that there are various processes which includes: Information gathering, analysis, implementation, etc.

However, as the problem is caused by complex issues, it is best to document the incident so that it can be more carefully analysed.

Read more about troubleshooting here:
brainly.com/question/25953942

8 0
3 years ago
An ad agency creates two ads for a particular car. one stresses the car's safety and gas mileage; the other simply shows how fun
muminat

Answer:

Central, Peripheral

Explanation:

The advert is intended to highlight the pros of the particular car. However, the ad agency recognizes that to convince prospective buyers they must explore different options to persuasion. The car's safety and gas mileage are the Central Route. The driving fun is the Peripheral

3 0
4 years ago
Incline Company generated $4,900,000 in revenue selling 4,025 units of its only product. Each unit has a contribution margin of
Hatshy [7]

Answer:

23%

Explanation:

The computation of the contribution margin ratio is shown below:-

Selling price per unit = $4,900,000 ÷ 4,025 units

= 1217.39

Contribution margin ratio = Contribution margin ÷ Selling price

= $280 ÷ 1217.39

= 23%

Therefore for computing the contribution margin ratio we simply divide selling price by contribution margin.

6 0
3 years ago
Other questions:
  • Productivity is output multiplied by worker hours. <br><br> a. True <br><br> b. False
    11·1 answer
  • The following balances were taken from the general ledger of Doogie Corporation as of December 31. All balances are normal. Cash
    12·1 answer
  • Pablo is saving for a big-screen television. Which of the following actions could be the most harmful to Pablo's savings goal? S
    13·1 answer
  • A property is being appraised by the cost approach. The appraiser estimates that the land is worth $17,000 and the replacement c
    14·1 answer
  • Suppose a government finances its expansionary fiscal policy by borrowing from the public. Joseph is concerned that this will in
    14·1 answer
  • Seven years ago, Carlos took out a 30-year mortgage for $185,000 at 5.6 percent. He has made all of the monthly payments as agre
    12·1 answer
  • As a certified public accountant, you have been contacted by Joe Davidson, CEO of Sports Pro Athletics, Inc., a manufacturer of
    6·1 answer
  • Which of the following, if true, would illustrate why price indexes such as the CSPI might overstate inflation in the cost of go
    6·1 answer
  • Which of the following statements is CORRECT? Assume that the project being considered has normal cash flows, with one outflow f
    12·1 answer
  • Need help ASAP please answer this
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!