43 Trenton Company has provided the following information: • Net income, $240,00
ID: 2501266 • Letter: 4
Question
43 Trenton Company has provided the following information:
• Net income, $240,000;
• Preferred shares issued, 6,000;
• Average number of common stock shares issued, 24,000;
• Cash dividends declared and paid on common stock, $30,000;
• Market price per share, $36;
• Average treasury shares of common stock, 4,000.
What is Trenton's earnings per share?
A $8.00.
B $7.00.
C $10.50.
D $12.00.
44 Trenton Company has provided the following information:
• Net income, $240,000;
• Preferred shares issued, 6,000;
• Average number of common shares issued, 24,000;
• Cash dividends declared and paid on common stock, $30,000;
• Market price per share, $36;
• Average treasury shares of common stock, 4,000.
What is Trenton's price/earnings ratio?
A 3.0
B 5.1
C 3.4
D 4.5
45 Which of the following is not a measure of solvency?
A Debt-to-equity ratio.
B Cash coverage ratio.
C Times interest earned ratio.
D Earnings per share.
46 Main Street Company paid out $2.30 in dividends per share of common stock and had earnings per share of $5.00 during 2014. The market price of the stock on December 31, 2014 was $21.00 per share. There were 15,000 shares of stock outstanding for the entire year. The dividend yield as of December 31, 2014 is closest to:
A 16.43%
B 10.95%
C 9.13%
D 46.00%
47 Lee Company has provided the following information:
• Cash flow from operating activities, $240,000
• Net income, $204,000
• Interest expense, $20,000
• Interest cash payments, $10,000
• Income tax payments, $140,000
• Income tax expense, $136,000
Lee's quality of income ratio is closest to:
A 1.18
B 0.85
C 1.76
D 0.74
48 Rice Company, a retailer, has provided the following information pertaining to its recent year of operation:
• Net income, $100,000
• Accounts receivable increased $9,000
• Prepaid insurance decreased $3,000
• Depreciation expense was $15,000
• Gain on sale of land, $2,000
• Wages payable decreased $7,000
• Unearned revenue increased $11,000
Using the indirect method, how much was Rice's net cash provided by operating activities?
A $89,000.
B $115,000.
C $125,000.
D $111,000.
Explanation / Answer
44
Calculation of Earning per share:
Net Income (A)
$ 240,000
Average number of common stock shares Outstanding 24000-4000 (B)
20,000
Earning per share = A/B
$ 12.00
44
Calculation of Earning per share:
Net Income (A)
$ 240,000
Average number of common stock shares Outstanding 24000-4000 (B)
20,000
Earning per share = A/B
$ 12.00
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