Question Details

Selected financial data from Harlow Company for the most recent year 




1.	Fastlane Company has 50,000 shares of common stock and 20,000 shares of preferred stock outstanding. There was no change in the number of common or preferred shares outstanding during the year. Preferred stockholders received dividends this year totaling $120,000. Common stockholders received dividends totaling $200,000. If the dividend payout ratio for the year was 80%, then the net income was
a.	$400,000.
b.	$370,000.
c.	$160,000.
d.	$250,000.


.

	2.	The following data have been taken from your company's financial records for the current year:

Earnings per share	$  4.50
Market price per share	$46.00
Dividend per share	$  3.00
Book value per share	$31.00

The price-earnings ratio is
a.	10.2.
b.	6.9.
c.	1.5.
d.	15.3.


	

	3.	Last year the return on total assets in Justin Company was 8.5%. The total assets were $2,900,000 at the beginning of the year and $3,100,000 at the end of the year. The tax rate was 30%, interest expense totaled $110,000, and sales were $5,200,000. Net income for the year was
a.	$145,000.
b.	$222,000.
c.	$332,000.
d.	$178,000.


	

	4.	Dowling Company's net income last year was $40,000 and its interest expense was $8,000. Total assets at the beginning of the year were $260,000 and total assets at the end of the year were $315,000. The company's income tax rate was 35%. The company's return on total assets for the year was closest to
a.	14.5%.
b.	15.7%.
c.	16.7%.
d.	7.9%.


	

	5.	Selected financial data from Harlow Company for the most recent year appear below:

Sales	$100,000
Cost of goods sold	$  60,000
Dividends declared and paid	$    5,000
Interest expense	$    8,000
Operating expenses	$  18,000

The income tax rate is 30%.

The return on sales ratio was closest to
a.	14%.
b.	40%.
c.	22%.
d.	10%.




Business Management Assignment Help, Business Management Homework help, Business Management Study Help, Business Management Course Help