The balance sheet for Tyde Corporation at the end of the current year indicates the following: $\begin{array}{llr}
\text { Bonds payable, $ 6 \% $ } &\$4,000,000\
\text { $ 5 \% $ Preferred stock, \$100 par } &1,000,000\
\text { Common stock $ \$ 10 $ par} &2,000,000
\end{array}$
Income before income taxes was $480000 and income taxes expense for the current year amounted to $144000. Cash dividends paid on common stock were $300000 and the common stock was selling for $22.88 per share at the end of the year. There were no ownership changes during the year.
Instructions
Determine each of the following:
(a) Times that bond interest was earned.
(b) Earnings per share for common stock.
(c) Price-earnings ratio.

Question

The balance sheet for Tyde Corporation at the end of the current year indicates the following: $\begin{array}{llr}
  \text {  Bonds payable, $ 6 \% $ } &\$4,000,000\
 \text { $ 5 \% $ Preferred stock, \$100 par  } &1,000,000\
 \text {  Common stock $ \$ 10 $ par} &2,000,000
\end{array}$
 Income before income taxes was $480000 and income taxes expense for the current year amounted to $144000. Cash dividends paid on common stock were $300000 and the common stock was selling for $22.88 per share at the end of the year. There were no ownership changes during the year.
Instructions
Determine each of the following:
(a) Times that bond interest was earned.
(b) Earnings per share for common stock.
(c) Price-earnings ratio.

Quizplus · Accepted Answer

The Answer of The balance sheet for Tyde Corporation at the end of the current year indicates the following: $\begin{array}{llr}
  \text {  Bonds payable, $ 6 \% $ } &\$4,000,000\
 \text { $ 5 \% $ Preferred stock, \$100 par  } &1,000,000\
 \text {  Common stock $ \$ 10 $ par} &2,000,000
\end{array}$
 Income before income taxes was $480000 and income taxes expense for the current year amounted to $144000. Cash dividends paid on common stock were $300000 and the common stock was selling for $22.88 per share at the end of the year. There were no ownership changes during the year.
Instructions
Determine each of the following:
(a) Times that bond interest was earned.
(b) Earnings per share for common stock.
(c) Price-earnings ratio.

The Balance Sheet for Tyde Corporation at the End of the Current