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163 a company reports the following net income 270 000 preferred dividends 10 000 sh 4295142

 

163. A company reports the following:
 

Net income

$270,000

Preferred dividends

$  10,000

Shares of common stock outstanding

20,000

Market price per share of common stock

$36.40

 

 

Determine the company’s price-earnings ratio.  Round your answer to one decimal place. 

 

 

 

 

 

164. Why would you compare or not compare Coca-Cola and Pepsi-Cola (PepsiCo) as companies to each other? 

 

 

 

 

 

165. Revenue and expense data for Young Technologies are as follows:

 

2012

2011

Sales

$500,000

$440,000

Cost of goods sold

325,000

242,000

Selling expense

70,000

79,200

Administrative expenses

75,000

70,400

Income tax expense

10,500

16,400

 

 

 

Required:

(1)

Prepare an income statement in comparative form, stating each item for both 2012 and 2011 as a percent of sales. Round to the nearest decimal place..

(2)

Comment on the significant changes disclosed by the comparative income statement.

 

 

 

 

 

 

 

 

166. The following data were extracted from the income statement of Maine Solutions, Inc.

 

2012

2011

Sales

$1,139,600

$1,192,320

Beginning inventories

80,000

64,000

Cost of goods sold

500,800

606,000

Ending inventories

72,000

80,000

 

 

 

Required:

(1)

Determine for each year:

 

 

 

a.

The inventory turnover; and

 

 

b.

The number of days’ sales in inventory. Round intermediate calculation to the nearest whole number and your final answer to one decimal place.

(2)

What conclusions can be drawn from these data concerning the inventories?

 

 

 

 

 

 

 

 

 

 

 

 

 

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