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Compute the earnings per share for year two

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Reference no: EM132493346

Selected items from successive annual reports of Middlebrook, Inc., appear as follows.

                                                                           Year 2                        Year 1

Total assets (40% of which are current)         $414,000                 $344,000

Current liabilities                                        $80,000                        $100,000

Bonds payable, 12%                                    100,000                         50,000

Capital stock, $5 par value                            100,000                      100,000

Retained earnings                                        134,000                        94,000

Total liabilities & stockholders' equity                 $414,000              $344,000

  • Dividends of $16,000 were declared and paid in year 2.

Question a. Compute the current ratio for year 2 and year 1. (Round your answers to 1 decimal place.)

Question b. Compute the debt ratio for year 2 and year 1. (Round your percentage answers to nearest whole percent. i.e. 0.1234 as 12%.)

Question c. Compute the earnings per share for year 2. (Round your answer to 2 decimal places.)

Reference no: EM132493346

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