230. Recher Corporation’s common stock has a par value of $3 per share and has been stable
at a total value of $270,000 on the company’s balance sheet for several years. The total
stockholders’ equity at the end of this year was $1,023,000 and at the beginning of the year was
$1,010,000. Net income for the year was $17,500. Dividends on common stock during the year
totaled $4,500. The market price of common stock at the end of the year was $3.76 per share.
The company’s dividend payout ratio is closest to:
231. Recher Corporation’s common stock has a par value of $3 per share and has been stable
at a total value of $270,000 on the company’s balance sheet for several years. The total
stockholders’ equity at the end of this year was $1,023,000 and at the beginning of the year was
$1,010,000. Net income for the year was $17,500. Dividends on common stock during the year
totaled $4,500. The market price of common stock at the end of the year was $3.76 per share.
The company’s dividend yield ratio is closest to:
232. Recher Corporation’s common stock has a par value of $3 per share and has been stable
at a total value of $270,000 on the company’s balance sheet for several years. The total
stockholders’ equity at the end of this year was $1,023,000 and at the beginning of the year was
$1,010,000. Net income for the year was $17,500. Dividends on common stock during the year
totaled $4,500. The market price of common stock at the end of the year was $3.76 per share.
The company’s book value per share at the end of the year is closest to:
233. Sperle Corporation has provided the following data concerning its stockholders’ equity
accounts:
Year 2 Year 1
Stockholders’ equity:
Common stock, $5 par value $400,000 $400,000
Additional paid-in capital-common stock 60,000 60,000
Retained earnings 654,000 630,000
Total stockholders’ equity $1,114,000 $1,090,000
Net income for Year 2 was $30,400. Dividends on common stock during Year 2 totaled $6,400.
The market price of common stock at the end of Year 2 was $3.08 per share.
The company’s earnings per share for Year 2 is closest to:
234. Sperle Corporation has provided the following data concerning its stockholders’ equity
accounts:
Year 2 Year 1
Stockholders’ equity:
Common stock, $5 par value $400,000 $400,000
Additional paid-in capital-common stock 60,000 60,000
Retained earnings 654,000 630,000
Total stockholders’ equity $1,114,000 $1,090,000
Net income for Year 2 was $30,400. Dividends on common stock during Year 2 totaled $6,400.
The market price of common stock at the end of Year 2 was $3.08 per share.
The company’s price-earnings ratio for Year 2 is closest to:
235. Sperle Corporation has provided the following data concerning its stockholders’ equity
accounts:
Year 2 Year 1
Stockholders’ equity:
Common stock, $5 par value $400,000 $400,000
Additional paid-in capital-common stock 60,000 60,000
Retained earnings 654,000 630,000
Total stockholders’ equity $1,114,000 $1,090,000
Net income for Year 2 was $30,400. Dividends on common stock during Year 2 totaled $6,400.
The market price of common stock at the end of Year 2 was $3.08 per share.
The company’s dividend payout ratio for Year 2 is closest to:
236. Sperle Corporation has provided the following data concerning its stockholders’ equity
accounts:
Year 2 Year 1
Stockholders’ equity:
Common stock, $5 par value $400,000 $400,000
Additional paid-in capital-common stock 60,000 60,000
Retained earnings 654,000 630,000
Total stockholders’ equity $1,114,000 $1,090,000
Net income for Year 2 was $30,400. Dividends on common stock during Year 2 totaled $6,400.
The market price of common stock at the end of Year 2 was $3.08 per share.
The company’s dividend yield ratio for Year 2 is closest to:
237. Sperle Corporation has provided the following data concerning its stockholders’ equity
accounts:
Year 2 Year 1
Stockholders’ equity:
Common stock, $5 par value $400,000 $400,000
Additional paid-in capital-common stock 60,000 60,000
Retained earnings 654,000 630,000
Total stockholders’ equity $1,114,000 $1,090,000
Net income for Year 2 was $30,400. Dividends on common stock during Year 2 totaled $6,400.
The market price of common stock at the end of Year 2 was $3.08 per share.
The company’s book value per share at the end of Year 2 is closest to:
13-249
238. Symons Corporation has provided the following financial data:
Balance Sheet
December 31, Year 2 and Year 1
Assets Year 2 Year 1
Current assets:
Cash $225,000 $160,000
Accounts receivable 191,000 180,000
Inventory 96,000 110,000
Prepaid expenses 91,000 80,000
Total current assets 603,000 530,000
Plant and equipment, net 810,000 840,000
Total assets $1,413,000 $1,370,000
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable $226,000 $190,000
Accrued liabilities 66,000 70,000
Notes payable, short term 54,000 50,000
Total current liabilities 346,000 310,000
Bonds payable 170,000 170,000
Total liabilities 516,000 480,000
Stockholders’ equity:
Common stock, $5 par value 250,000 250,000
Additional paid-in capital-common stock 70,000 70,000
Retained earnings 577,000 570,000
Total stockholders’ equity 897,000 890,000
Total liabilities & stockholders’ equity $1,413,000 $1,370,000
Income Statement—Year 2
For the Year Ended December 31, Year 2
Sales (all on account) $1,260,000
Cost of goods sold 760,000
Gross margin 500,000
Operating expenses 473,429
Net operating income 26,571
Interest expense 13,000
Net income before taxes 13,571
Income taxes (30%) 4,071
Net income $9,500
Dividends on common stock during Year 2 totaled $2,500. The market price of common stock at
the end of Year 2 was $2.01 per share.
The company’s earnings per share for Year 2 is closest to:
13-251
239. Symons Corporation has provided the following financial data:
Balance Sheet
December 31, Year 2 and Year 1
Assets Year 2 Year 1
Current assets:
Cash $225,000 $160,000
Accounts receivable 191,000 180,000
Inventory 96,000 110,000
Prepaid expenses 91,000 80,000
Total current assets 603,000 530,000
Plant and equipment, net 810,000 840,000
Total assets $1,413,000 $1,370,000
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable $226,000 $190,000
Accrued liabilities 66,000 70,000
Notes payable, short term 54,000 50,000
Total current liabilities 346,000 310,000
Bonds payable 170,000 170,000
Total liabilities 516,000 480,000
Stockholders’ equity:
Common stock, $5 par value 250,000 250,000
Additional paid-in capital-common stock 70,000 70,000
Retained earnings 577,000 570,000
Total stockholders’ equity 897,000 890,000
Total liabilities & stockholders’ equity $1,413,000 $1,370,000
Income Statement—Year 2
For the Year Ended December 31, Year 2
Sales (all on account) $1,260,000
Cost of goods sold 760,000
Gross margin 500,000
Operating expenses 473,429
Net operating income 26,571
Interest expense 13,000
Net income before taxes 13,571
Income taxes (30%) 4,071
Net income $9,500
Dividends on common stock during Year 2 totaled $2,500. The market price of common stock at
the end of Year 2 was $2.01 per share.
The company’s price-earnings ratio for Year 2 is closest to:
13-253
240. Symons Corporation has provided the following financial data:
Balance Sheet
December 31, Year 2 and Year 1
Assets Year 2 Year 1
Current assets:
Cash $225,000 $160,000
Accounts receivable 191,000 180,000
Inventory 96,000 110,000
Prepaid expenses 91,000 80,000
Total current assets 603,000 530,000
Plant and equipment, net 810,000 840,000
Total assets $1,413,000 $1,370,000
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable $226,000 $190,000
Accrued liabilities 66,000 70,000
Notes payable, short term 54,000 50,000
Total current liabilities 346,000 310,000
Bonds payable 170,000 170,000
Total liabilities 516,000 480,000
Stockholders’ equity:
Common stock, $5 par value 250,000 250,000
Additional paid-in capital-common stock 70,000 70,000
Retained earnings 577,000 570,000
Total stockholders’ equity 897,000 890,000
Total liabilities & stockholders’ equity $1,413,000 $1,370,000
Income Statement—Year 2
For the Year Ended December 31, Year 2
Sales (all on account) $1,260,000
Cost of goods sold 760,000
Gross margin 500,000
Operating expenses 473,429
Net operating income 26,571
Interest expense 13,000
Net income before taxes 13,571
Income taxes (30%) 4,071
Net income $9,500
Dividends on common stock during Year 2 totaled $2,500. The market price of common stock at
the end of Year 2 was $2.01 per share.
The company’s dividend payout ratio for Year 2 is closest to:
13-255
241. Symons Corporation has provided the following financial data:
Balance Sheet
December 31, Year 2 and Year 1
Assets Year 2 Year 1
Current assets:
Cash $225,000 $160,000
Accounts receivable 191,000 180,000
Inventory 96,000 110,000
Prepaid expenses 91,000 80,000
Total current assets 603,000 530,000
Plant and equipment, net 810,000 840,000
Total assets $1,413,000 $1,370,000
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable $226,000 $190,000
Accrued liabilities 66,000 70,000
Notes payable, short term 54,000 50,000
Total current liabilities 346,000 310,000
Bonds payable 170,000 170,000
Total liabilities 516,000 480,000
Stockholders’ equity:
Common stock, $5 par value 250,000 250,000
Additional paid-in capital-common stock 70,000 70,000
Retained earnings 577,000 570,000
Total stockholders’ equity 897,000 890,000
Total liabilities & stockholders’ equity $1,413,000 $1,370,000
Income Statement—Year 2
For the Year Ended December 31, Year 2
Sales (all on account) $1,260,000
Cost of goods sold 760,000
Gross margin 500,000
Operating expenses 473,429
Net operating income 26,571
Interest expense 13,000
Net income before taxes 13,571
Income taxes (30%) 4,071
Net income $9,500
Dividends on common stock during Year 2 totaled $2,500. The market price of common stock at
the end of Year 2 was $2.01 per share.
The company’s dividend yield ratio for Year 2 is closest to:
13-257
242. Symons Corporation has provided the following financial data:
Balance Sheet
December 31, Year 2 and Year 1
Assets Year 2 Year 1
Current assets:
Cash $225,000 $160,000
Accounts receivable 191,000 180,000
Inventory 96,000 110,000
Prepaid expenses 91,000 80,000
Total current assets 603,000 530,000
Plant and equipment, net 810,000 840,000
Total assets $1,413,000 $1,370,000
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable $226,000 $190,000
Accrued liabilities 66,000 70,000
Notes payable, short term 54,000 50,000
Total current liabilities 346,000 310,000
Bonds payable 170,000 170,000
Total liabilities 516,000 480,000
Stockholders’ equity:
Common stock, $5 par value 250,000 250,000
Additional paid-in capital-common stock 70,000 70,000
Retained earnings 577,000 570,000
Total stockholders’ equity 897,000 890,000
Total liabilities & stockholders’ equity $1,413,000 $1,370,000
Income Statement—Year 2
For the Year Ended December 31, Year 2
Sales (all on account) $1,260,000
Cost of goods sold 760,000
Gross margin 500,000
Operating expenses 473,429
Net operating income 26,571
Interest expense 13,000
Net income before taxes 13,571
Income taxes (30%) 4,071
Net income $9,500
Dividends on common stock during Year 2 totaled $2,500. The market price of common stock at
the end of Year 2 was $2.01 per share.
The company’s book value per share at the end of Year 2 is closest to:
243. Rubendall Corporation’s total current assets are $310,000, its noncurrent assets are
$630,000, its total current liabilities are $250,000, its long-term liabilities are $300,000, and its
stockholders’ equity is $390,000.
Required:
Compute the company’s current ratio. Show your work!
13-260
244. Gremel Corporation has provided the following financial data:
Current assets:
Cash $241,000
Accounts receivable $234,000
Inventory $119,000
Prepaid expenses $45,000
Total current assets $639,000
Current liabilities:
Accounts payable $163,000
Accrued liabilities $87,000
Notes payable, short term $57,000
Total current liabilities $307,000
Required:
a. What is the company’s working capital?
b. What is the company’s current ratio?
c. What is the company’s acid-test (quick) ratio?