Solution-Compute the earnings per share and price-earnings

Compute the earnings per share and price-earnings

Assignment Help Accounting Basics

Reference no: EM131769299

Question - The income statement for Christensen, Inc., appears below.

CHRISTENSEN, INC. Income Statement For the Year Ended December 31, 2011
Sales	$400,000
Cost of goods sold	230,000
Gross profit	170,000
Expenses (including $16,000 interest and $24,000 income taxes)	105,000
Net income	$65,000

Additional information:

1. The weighted-average common shares outstanding in 2011 were 30,000 shares.

2. The market price of Christensen, Inc. stock was $13 in 2011.

3. Cash dividends of $26,000 were paid, $5,000 of which were to preferred stockholders.

Instructions - Compute the following ratios for 2011.

(a) Earnings per share.

(b) Price-earnings.

(d) Times interest earned.

Reference no: EM131769299

Questions Cloud

Discuss comply with the regulatory bodys requirements : the proper format to comply with the regulatory body's requirements and should be a document that you would be willing

Create an erd for each of the following statements that : Create an ERD for each of the following statements that describe the current business rules for HTH. For each new statement being the business rule, extend the ERD to include the additional business rule in the ERD (created in previous point for exam..

What is the approximate distribution of coating thickness : An optical company uses a vacuum deposition method to apply a protective coating to certain lenses. The coating is built up one layer at a time.

Prepare adjusting entries from selected data : Prepare adjusting entries from selected data, Compute cash and accrual accounting income

Compute the earnings per share and price-earnings : The weighted-average common shares outstanding in 2011 were 30,000 shares. Compute the following ratios for 2011 - Earnings per share

Explain the demoivre-laplace theorem : A batch of 100 steel rods passes inspection if the average of their diameters falls between 0.495 cm and 0.505 cm. Let µ and s denote the mean.

Provide dunelm with a better understanding of the views : Provide Dunelm with a better understanding of the views, attitudes and general characteristics of their customers.

Commercial building to ann an educated person : Wendy sold a commercial building to Ann an educated person, Ann merely half read the contract that she signed. As a result, she did not notice the provision

Define quality of the approximation by the methods : Use the DeMoivre-Laplace Theorem, with and without continuity correction, to approximate P(270 = X = 320). Comment on the quality of the approximation provided.

User Account

All Pages

Compute the earnings per share and price-earnings

Reference no: EM131769299

Reference no: EM131769299

Questions Cloud

Reviews

Write a Review

Accounting Basics Questions & Answers

How much control does fed have over this longer real rate

Coures:- fundamental accounting principles

Accounting problems

Theory of interest - term structure of interest rates

Write a report on internal controls

Prepare the bank reconciliation for company

Cost-benefit analysis

Theory of interest

Liquidity and profitability

What is the expected risk premium on the portfolio

Simple interest and compound interest

Capm and venture capital

Assured A++ Grade

Academics

Major Subjects

Majors

Get In Touch

TERMS & POLICIES

HELP & SUPPORT