This paper circulates around the core theme of Compute the following ratios for 2014: (a) Earnings per share. (b) Price-earnings. (c) Times interest earned. together with its essential aspects. It has been reviewed and purchased by the majority of students thus, this paper is rated 4.8 out of 5 points by the students. In addition to this, the price of this paper commences from £ 99. To get this paper written from the scratch, order this assignment now. 100% confidential, 100% plagiarism-free.
The income statement for Pointe Company for the
year ended December 31, 2014 appears below.
Sales $720,000
Cost
of goods sold 380,000
Gross
profit 340,000
Expenses 190,000*
Net
income $150,000
*Includes $20,000 of
interest expense and $25,000 of income tax expense.
Additional information:
1. Common
stock outstanding on January 1, 2014 was 50,000 shares. On July 1, 2014, 10,000
more shares were issued.
2. The
market price of Pointe’s stock was $11.70 at the end of 2014.
3. Cash
dividends of $30,000 were paid, $7,000 of which were paid to preferred
stockholders.
Instructions
Compute the
following ratios for 2014:
(a) Earnings per share.
(b) Price-earnings.
(c) Times interest earned.
