The information is condensed data taken from the balance sheet at the end of the year:
Net income: $300,000
Preferred 7% stock, $100 par $100,000
Common stock, $20 par $200,000
Paid-in capital in excess of par—common stock $50,000
Retained earnings $300,000
Cash Dividend paid on common stock $ 40,000
Common stock was selling for $56 at the end of the current year.
I need: Dividend yield on common stock, earnings per share on common stock and, price-earnings ratio on common stock.
What type of retail clothing store with the highest ratio of net sales to assets is most likely?
A. Men’s clothing
B. Home Appliances
1. A company with working capital of $500,000 receives cash for the entire balance on a $120,000 short-term note receivable (current asset). The working capital immediately after the receipt is
2. If the acid-test ratio is 1.25, the receipt of cash from the sale of marketable securities at their book value will cause the ratio to
B) not affected