Account balances at the beginning of the companys fiscal

Assignment Help Accounting Basics

Reference no: EM13570528

Recent financial statements for Madison Company follow:

Madison Company Balance Sheet June 30
Assets
Current assets:
Cash			$	22,000
Accounts receivable, net				180,000
Merchandise inventory				370,000
Prepaid expenses				12,000

Total current assets				584,000
Plant and equipment, net				820,000

Total assets			$	1,404,000

Liabilities and Stockholders' Equity
Liabilities:
Current liabilities			$	290,000
Bonds payable, 10%				330,000

Total liabilities				620,000
Stockholders' equity:
Common stock, $10 par value	$	170,000
Retained earnings		614,000

Total stockholders' equity				784,000

Total liabilities and stockholders' equity			$	1,404,000

Madison Company Income Statement For the Year Ended June 30
Sales	$	2,200,000
Cost of goods sold		1,250,000

Gross margin		950,000
Selling and administrative expenses		660,000

Net operating income		290,000
Interest expense		33,000

Net income before taxes		257,000
Income taxes		77,100

Net income	$	179,900

Account balances at the beginning of the company's fiscal year were: accounts receivable, $230,000; and inventory, $270,000. All sales were on account.

Assume that Madison Company paid dividends of $4.05 per share during the year. Also assume that the company's common stock had a market price of $68.00 per share on June 30 and that there was no change in the number of outstanding shares of common stock during the fiscal year.

Required:

Compute the following:

1.	Earnings per share. (Round your answer to 2 decimal places. Omit the "$" sign in your response.)

Earnings per share

2.	Dividend payout ratio. (Round your intermediate calculations to 2 decimal places and final answer to 1 decimal place.Omit the "%" sign in your response.)

Dividend payout ratio

3.	Dividend yield ratio. (Round your answer to 1 decimal place.Omit the "%" sign in your response.)

Dividend yield ratio

4.	Price-earnings ratio. (Round your intermediate calculations to 2 decimal places and final answer to 1 decimal place.)

Price-earnings ratio

Reference no: EM13570528

Questions Cloud

What metrics can be used to assess improvement or : what is meant by liquidity?what metrics can be used to assess improvement or deterioration in liquidity?how is

Degrees inc a manufacturer of frozen food began operations : degrees inc. a manufacturer of frozen food began operations on july 1 of the current year. during this time the company

Tangier manufacturings common stock has a beta of 18 if : tangier manufacturings common stock has a beta of 1.8. if the expected risk free return is 5 and the expected return on

Interest is said to drive the stock market but interest is : interest is said to drive the stock market. but interest is paid on bonds and loans while stocks pay dividends never

Account balances at the beginning of the companys fiscal : recent financial statements for madison company followmadison company balance sheet june 30assetscurrent

A buffer that contains 0347 m of a base b and 0483 m of : a buffer that contains 0.347 m of a base b and 0.483 m of its conjugate acid bh has a ph of 8.08. what is the ph after

Suppose boyson corporations projected free cash flow for : suppose boyson corporations projected free cash flow for next year is fcf1 150000 and fcf is expected to grow at a

The cost of materials transferred into the rolling : the cost of materials transferred into the rolling department of matco steel company is 540300 from the casting

No aspect of our mental life is more important to the : no aspect of our mental life is more important to the quality and meaning of our existence than emotions. they are what

User Account

All Pages