The balance sheet for Farley Corporation at the end of the current year indicates the following:
Income before income taxes was $480,000 and income taxes expense for the current year amounted to $144,000. Cash dividends paid on common stock were $300,000, and the common stock was selling for $22 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 Farley Corporation at the end of the current year indicates the following:  
Income before income taxes was $480,000 and income taxes expense for the current year amounted to $144,000. Cash dividends paid on common stock were $300,000, and the common stock was selling for $22 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 Farley Corporation at the end of the current year indicates the following:  
Income before income taxes was $480,000 and income taxes expense for the current year amounted to $144,000. Cash dividends paid on common stock were $300,000, and the common stock was selling for $22 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 Farley Corporation at the End of the Current