The balance sheets at the end of each of the first two years of operations indicate the
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Question:
The balance sheets at the end of each of the first two years of operations indicate the following:
Kellman Company | ||
Year 2 | Year 1 | |
Total current assets | $608,732 | $584,406 |
Total investments | 65,725 | 53,425 |
Total property, plant, and equipment | 879,976 | 789,415 |
Total current liabilities | 119,515 | 89,512 |
Total long-term liabilities | 297,749 | 245,944 |
Preferred 9% stock, $100 par | 85,722 | 85,722 |
Common stock, $10 par | 588,705 | 588,705 |
Paid-in capital in excess of par-common stock | 67,128 | 67,128 |
Retained earnings | 395,614 | 350,235 |
Using the balance sheets for Kellman Company, if net income is $117,421 and interest expense is $48,321 for Year 2, and the market price of common shares is $47, what is the price-earnings ratio on common stock for Year 2 (rounded to two decimal places)?
Related Book For
Introductory Financial Accounting for Business
ISBN: 978-1260299441
1st edition
Authors: Thomas Edmonds, Christopher Edmonds
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