### 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?