Compute the earning per share and price-earning ratio

Assignment Help Cost Accounting
Reference no: EM13215145

The 2008 financial statements for Fay Thill Country Stores show total assets of $490,000, total liabilities of $290,000, net sales of $1,800,000, net income of $450,000, income from operations of $520,000, cost of goods sold of $1,080,000, preferred dividends of $225,000, and interest expenses of $20,000. Total assests and total liabilities for 2007 were $430,000 and $270,000, respectively. Compute the following ratios for 2008:

1. Profit margin
2. Return on assets
3. Return on equity
4. Times-interest-earned
5. Debt ratio

a market price of $25 per share, and 100,000 shares of common stock outstanding, compute the following for 2008:

1. Earning per share
2. Price/earning ratio

Reference no: EM13215145

Questions Cloud

Write a usable code snippet that demonstrates an iterator : A client of K & R has come to you for information regarding loops, iterators, and arrays. He needs you to help him comprehend these concepts. To assist this client, briefly address the following in a 1-2 page Notepad document.
Compute trend percentages for each item for 2007 : Compute the rate of return on net sales for 2008 through 2010, rounding to three decimal places. In this industry, rates of 6% are average, rates above 8% are considered good and rates above 10% are viewed as outstanding.
Explain what does the market believe will be the stock price : The dividend is expected to grow at some constant rate g, the stock currently sells for $33 a share. Assuming the market is in equilibrium, what does the market believe will be the stock price at the end of 3 years (i.e.,what is P^3)?
Draw and name a one-dimensional array : Draw and name a one-dimensional array that would hold 10 temperatures. Number the elements. I am supposed to finish those 1 to 6 questions for my assignment. please help me.
Compute the earning per share and price-earning ratio : The 2008 financial statements for Fay Thill Country Stores show total assets of $490,000, total liabilities of $290,000, net sales of $1,800,000, net income of $450,000, income from operations of $520,000, cost of goods sold of $1,080,000, preferr..
Explain functional currency of the subsidiary the peso : Senior managers of the subsidiary are employees of Qing Corporation who have been transferred to the subsidiary for a tour of international service. Is the functional currency of the subsidiary the peso or the U.S. dollar? Explain your reasoning
Explain the points off inancial impact on a company : Explain why the present value of a stream of cash flow and assets associated there with, fluctuate in value with the level of interest rates in the bond markets.
Use rfid for inventory and theft prevention : Write clearly and concisely about information security legal issues and topics using proper writing mechanics and technical style conventions
Compute the ratio of accounts receivable turnover : The 2007 and 2008 balance sheets for Alan Jack and Sons showed net accounts receivable of $10,000 and $14,000, respectively, and inventory of $8,000 and $6,000, respectively. Their 2008 income statement showed net sales of $109,500 and cost of goo..

Reviews

Write a Review

 

Cost Accounting Questions & Answers

  Cost accounting assignment

Evaluate Method of measuring costs associated with production, budgeting process, normal job-order costing system , master budget, cycle time.

  Prepare the journal entries

Prepare the journal entries to record the bond issue and interest expense.

  Advise as to the liability of all the parties

Write a report on given case study and Advise as to the liability of ALL the parties both under common law and the Corporations Law.

  Prepare revenues budget

Prepare Revenues budget and Production budget in units

  Effect of exchange rate changes on cash and cash

Effect of exchange rate changes on cash and cash

  Corporate governance

You are to reflect on how this case of China Sky relates to what the arguments for and against allowing audit firm partners and/or employees to join audit committees.

  Cost-benefit analysis

A cost-benefit analysis of electronic medical records in primary care

  Non-annual interest rates and annuities

Theory of Interest- Non-annual interest rates and annuities

  Job costing in service organizations

How is job costing in service organizations different from job costing in manufacturing environments?

  Accounting for bad debt expense

Accounting for bad debt expense

  Accounting and partnership problems

Accounting and Partnership problems

  Development of relevant cash flows

Development of relevant cash flows - Cost estimating and financial analysis

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd