Chapter 15 – Financial Statement Analysis
Chapter 15 – Financial Statement Analysis
191. Lunghofer Corporation’s net income for the most recent year was $3,189,000. A total of
300,000 shares of common stock and 100,000 shares of preferred stock were outstanding
throughout the year. Dividends on common stock were $4.90 per share and dividends on
preferred stock were $1.95 per share.
Required:
192. Basta Corporation’s net income last year was $1,401,000. The dividend on common
stock was $1.00 per share and the dividend on preferred stock was $3.90 per share. The
market price of common stock at the end of the year was $65.40 per share. Throughout the
year, 300,000 shares of common stock and 100,000 shares of preferred stock were
outstanding.
Required:
Chapter 15 – Financial Statement Analysis
193. Sabb Corporation’s net income last year was $6,190,000. The dividend on common stock
was $13.90 per share and the dividend on preferred stock was $1.60 per share. The market
price of common stock at the end of the year was $41.50 per share. Throughout the year,
300,000 shares of common stock and 100,000 shares of preferred stock were outstanding.
Required:
194. Last year, Bickham Corporation’s dividend on common stock was $8.70 per share and
the dividend on preferred stock was $3.80 per share. The market price of common stock at the
end of the year was $66.10 per share.
Required:
Chapter 15 – Financial Statement Analysis
195. Gulick Corporation’s most recent income statement appears below:
The beginning balance of total assets was $320,000 and the ending balance was $280,000.
Required:
Chapter 15 – Financial Statement Analysis
196. Excerpts from Ruden Corporation’s most recent balance sheet appear below:
Net income for Year 2 was $102,000. Dividends on common stock were $47,000 in total and
dividends on preferred stock were $15,000 in total.
Required:
Chapter 15 – Financial Statement Analysis
197. Data from Paynter Corporation’s most recent balance sheet appear below:
A total of 100,000 shares of common stock and 20,000 shares of preferred stock were
outstanding at the end of the year.
Required:
Chapter 15 – Financial Statement Analysis
15-167
198. Financial statements for Rarig Company appear below:
Chapter 15 – Financial Statement Analysis
15-168
Required:
Compute the following for Year 2:
a. Current ratio.
b. Acid-test ratio.
c. Average collection period.
d. Inventory turnover.
e. Times interest earned.
f. Debt-to-equity ratio.
Chapter 15 – Financial Statement Analysis
Chapter 15 – Financial Statement Analysis
15-170
199. Malbrough Corporation’s most recent balance sheet and income statement appear below:
Chapter 15 – Financial Statement Analysis
Required:
Compute the following for Year 2:
Chapter 15 – Financial Statement Analysis