Question Details

The balance sheet for Finley Corporation at the end of the current year 



Ex. 1
State the effect of the following transactions on the current ratio. Use increase, decrease, or no
effect for your answer.
(a) Collection of an accounts receivable.
(b) Declaration of cash dividends.
(c) Additional stock is sold for cash.
(d) Stock investments are purchased for cash.
(e) Equipment is purchased for cash.
(f) Inventory purchases are made for cash.
(g) Accounts payable are paid.
Ex. 2
The balance sheet for Finley Corporation at the end of the current year indicates the following:
Bonds payable, 8% ............................................................. $4,000,000
6% Preferred stock, $100 par ............................................. 1,000,000
Common stock, $10 par ...................................................... 2,000,000
Income before income taxes was $480,000 and income tax 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.



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