Question

RUSH A company reports the following: 2018 2017 Net income $ 120,000 $ 140,000 Shares of...

RUSH

A company reports the following:

2018 2017
Net income $ 120,000 $ 140,000
Shares of common stock outstanding 10,000 10,000
Cash dividend per share $1.00 $1.20
Market price per share of common stock $50.00 $40.00

What caused the price-earnings ratio to move higher in 2018?

higher profitability

more shares of common stock outstanding

lower cash dividends paid per share

higher market price per share of common stock

Which change in financial ratios indicates an improvement in a company's financial performance?

the rate earned on total assets decreased.

the current ratio and quick ratio decreased.

the number of day's sales in inventory decreased.

accounts receivable turnover decreased

Which change in financial ratios between 2017 and 2018 does not indicate an improvement in financial performance?

the rate earned on total assets increased.

the current ratio and quick ratio decreased.

the number of day's sales in inventory decreased.

accounts receivable turnover increased.

Cost of advertising in a national magazine is what type of cost?

direct materials

direct labor

factory overhead

selling and administrative expense

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

1) higher market price per share of common stock

pe r atio = marke price per share /earning per share

so when the market price of shares wuld increase defiinety the pe ratio wuld increae

2) the number of day's sales in inventory decreased.

3) the current ratio and quick ratio decreased.

it measn that shor term debit is piiling up as we have to meet the obligation on time

4) selling and administrative expense

THANKS IN ADVANCE FOR GIVING ME POSITIVE RATINGS
MAY GOD BLESS YOU
STAY HOME STAY SAFE
HAVE A WONDERFUL DAY
0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
The condensed financial statements of Marks Company for the years 2017-2018 are presented below: Marks Company...
The condensed financial statements of Marks Company for the years 2017-2018 are presented below: Marks Company Comparative Balance Sheets As of December 31, 2017 and 2018                                                                                                           2018                      2017                                                                                              Cash                                                                                              $   630,000    $   180,000 Accounts receivable (net)                                                                  540,000         450,000 Inventories                                                                                         570,000         510,000 Plant and equipment                                                                       2,700,000      1,608,000 Accumulated depreciation                                                                 (390,000)    (228,000)                                                                                                       $4,050,000    $2,520,000 Accounts payable                                                                          $   510,000    $   240,000 Dividends payable                                                                                   -0-              60,000 Bonds payable                                                                                   600,000                 -0- Common stock ($10 par)                                                                2,280,000      1,800,000 Retained earnings                                                                             660,000         420,000                                                                                                       $4,050,000    $2,520,000 Additional data:             Market...
Common Stockholders' Profitability Analysis A company reports the following: Net income $120,000 Preferred dividends 4,800 Average...
Common Stockholders' Profitability Analysis A company reports the following: Net income $120,000 Preferred dividends 4,800 Average stockholders' equity 975,610 Average common stockholders' equity 587,755 Determine (a) the the return on stockholders’ equity and (b) the return on common stockholders’ equity. If required, round your percentages to one decimal place. a. The rate earned on stockholders' equity % b. The rate earned on common stockholders' equity % Earnings per Share and Price-Earnings Ratio A company reports the following: Net income $404,500...
Just Dew It Corporation reports the following balance sheet information for 2017 and 2018. JUST DEW...
Just Dew It Corporation reports the following balance sheet information for 2017 and 2018. JUST DEW IT CORPORATION 2017 and 2018 Balance Sheets Assets Liabilities and Owners' Equity 2017 2018 2017 2018   Current assets   Current liabilities     Cash $   10,750        $ 10,900        Accounts payable $ 71,250     $ 60,500           Accounts receivable 27,050      27,000        Notes payable 48,500     50,000           Inventory 62,500      63,800          Total $ 119,750     $ 110,500            Total $ 100,300      $...
Just Dew It Corporation reports the following balance sheet information for 2017 and 2018. JUST DEW...
Just Dew It Corporation reports the following balance sheet information for 2017 and 2018. JUST DEW IT CORPORATION 2017 and 2018 Balance Sheets Assets Liabilities and Owners' Equity 2017 2018 2017 2018   Current assets   Current liabilities     Cash $   10,650        $ 10,700        Accounts payable $ 73,500     $ 63,500           Accounts receivable 28,050      27,350        Notes payable 45,250     48,000           Inventory 64,400      65,000          Total $ 118,750     $ 111,500            Total $ 103,100      $...
Comparative financial statement data of Manfield, Inc.​ follow: Compute the following ratios for 2018 and 2017​:...
Comparative financial statement data of Manfield, Inc.​ follow: Compute the following ratios for 2018 and 2017​: a. Current ratio b. Cash ratio c. ​Times-interest-earned ratio d. Inventory turnover e. Gross profit percentage f. Debt to equity ratio g. Rate of return on common​ stockholders' equity h. Earnings per share of common stock i. ​Price/earnings ratio 2. Decide​ (a) whether Manfield​'s ability to pay debts and to sell inventory improved or deteriorated during 2018 and​ (b) whether the investment attractiveness of...
Question 291 pts Ward Corporation had net income of P2 million in 2018. Using the 2018...
Question 291 pts Ward Corporation had net income of P2 million in 2018. Using the 2018 financial elements as the base data, net income decreased by 70% in 2019 and increased by 175% in 2020. The respective net income reported by Ward Corporation for 2019 and 2020 are: Group of answer choices P1,400,000 and P3,500,000 P1,400,000 and P5,500,000 P600,000 and P5,500,000 P5,500,000 and P600,000 Flag this Question Question 301 pts Eugene Store had net credit sales of P6,500,000 and cost...
Smile corp had 900,000 net income in 2018. The tax rate is 40%. 220,0000 shares of...
Smile corp had 900,000 net income in 2018. The tax rate is 40%. 220,0000 shares of common stock outstanding throughout 2018. Smile corp had the following potentially dilutive securities. -There are 30,000 options to buy common stock at 40 a share outstanding. The market price of the common stock averaged 50 during 2018. . During 2018, there were 40,000 shares of Cumulative convertible 7% preferred stock outstanding. The preferred is $100 par, pays $3.50 a year dividend, and is convertible...
On December 31, 2017, Jackson Company had 100,000 shares of common stock outstanding and 30,000 shares...
On December 31, 2017, Jackson Company had 100,000 shares of common stock outstanding and 30,000 shares of 7%, $50 par, cumulative preferred stock outstanding. On February 28, 2018, Jackson purchased 24,000 shares of common stock on the open market as treasury stock paying $45 per share. Jackson sold 6,000 of the treasury shares on September 30, 2018, for $47 per share. Net income for 2018 was $180,905. Also outstanding at December 31, 2017, were fully vested incentive stock options giving...
Assume that the following data relative to Kane Company for 2018 is available: Net Income $2,760,000...
Assume that the following data relative to Kane Company for 2018 is available: Net Income $2,760,000 Transactions in Common Shares Change Cumulative Jan. 1, 2018, Beginning number 720,000 Mar. 1, 2018, Purchase of treasury shares (61,200) 658,800 June 1, 2018, Stock split 2-1 658,800 1,317,600 Nov. 1, 2018, Issuance of shares 240,000 1,557,600 6% Cumulative Convertible Preferred Stock Sold at par, convertible into 210,000 shares of common (adjusted for split). $1,050,000 Stock Options Exercisable at the option price of $25...
On December 31, 2017, Jackson Company had 100,000 shares of common stock outstanding and 34,000 shares...
On December 31, 2017, Jackson Company had 100,000 shares of common stock outstanding and 34,000 shares of 5%, $50 par, cumulative preferred stock outstanding. On February 28, 2018, Jackson purchased 28,000 shares of common stock on the open market as treasury stock for $39 per share. Jackson sold 6,400 treasury shares on September 30, 2018, for $41 per share. Net income for 2018 was $184,905. Also outstanding during the year were fully vested incentive stock options giving key personnel the...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT