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127.The following information pertains to Eura Company. Assume that all

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.

 

 

 

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