The following table is extracted from the income statement of Al shams Private Ltd. The company is having 10,000 common stocks, long term debt interest is OMR 1,500 and Preferred stock dividend is OMR 3400. Answer the following question after analyzing the given table YEAR 1 YEAR 2 Earnings before interest and taxes (EBIT) 16,000 44,000 Less: Interest 5,000 ? Net profit before tax 11,000 ? Less: Tax(0.40) 4,400 ? Net profit after tax 6,600 ? Less: Preferred stock dividend 3,400 ? Earnings available for common shareholders 3,200 ? Earnings Per Share(EPS) 2.13 ?

The following table is extracted from the income statement of Al shams Private Ltd. The company is having 10,000 common stocks, long term debt interest is OMR 1,500 and Preferred stock dividend is OMR 3400. Answer the following question after analyzing the given table YEAR 1 YEAR 2 Earnings before interest and taxes (EBIT) 16,000 44,000 Less: Interest 5,000 ? Net profit before tax 11,000 ? Less: Tax(0.40) 4,400 ? Net profit after tax 6,600 ? Less: Preferred stock dividend 3,400 ? Earnings available for common shareholders 3,200 ? Earnings Per Share(EPS) 2.13 ?

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter15: Financial Statement Analysis

Section: Chapter Questions

Problem 52E: Juroe Company provided the following income statement for last year: Juroes balance sheet as of...

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The following table is extracted from the income statement of Al shams Private Ltd. The company is having 10,000 common stocks, long term debt interest is OMR 1,500 and Preferred stock dividend is OMR 3400. Answer the following question after analyzing the given table YEAR 1 YEAR 2 Earnings before interest and taxes (EBIT) 16,000 44,000 Less: Interest 5,000 ? Net profit before tax 11,000 ? Less: Tax(0.40) 4,400 ? Net profit after tax 6,600 ? Less: Preferred stock dividend 3,400 ? Earnings available for common shareholders 3,200 ? Earnings Per Share(EPS) 2.13 ? Complete the table for the year 2 Calculate the Degree of Financial Leverage (DFL). Interpret your answer (DFL).
In the recent year Hill Corporation had net income of $140,000, interest expense of $40,000, and tax expense of $20,000. What was Hill Corporation's times interest earned ratio for the year? Select one: О а. 4.0 O a. ОБ. 3.5 Ob. 3.0 d. 5.0
Oak Corporation's financial statements for the current year showed the following: Note: Round your answers to 2 decimal places. Income Statement Revenues Expenses Interest expense Pretax income Income tax (21%) Net income $840,000 (628,000) (14,600) Times interest earned ratio 197,400 (41,454) $155,946 Compute Oak's times interest earned ratio. 13.52
Q9: You have the following data :Operating income 30,000 ID, interest revenue 5,000 ID, interest on notes and bonds 20,000 ID, rental revenue 15,000 ID, bank exp. 10,00O ID, dividends received 5,000 ID, So what * ?is the net profit before tax
Sprout Company reported the following on the company's income statement in two recent years: Current Year Prior Year Interest expense $510,000 $480,000 Income before income tax expense 5,610,000 6,720,000 a. Determine the times interest earned ratio for the current year and the prior year. Current year Prior Year b. Is the times interest earned ratio improving or declining?
. Great Products, Inc. reported the following on the company’s income statement in two recent years:Current Year Prior YearInterest Expense $270,000 $250,000Income before income tax expense 4,212,000 3,450,000a. Determine the times interest earned ratio for the current year and the prior year. Round to one decimal place. b. Is the times interest earned ratio improving or declining?
Merryweather Corporation reported net income of $150,000, income before taxes of$240,000 and interest expense of $32,000. What is the times-interest-earned ratio? (Roundyour final answer to two decimal places.)a. 4.69b. 5.69c. 7.50d. 8.50
Please do provide solution thank you@ 3. Following are selected data taken from the records of Jemson Company:Income before tax = P200,000Income tax rate = 40%Dividend payout ratio = 0.80Number of common shares outstanding = 10,000 shares How much dividends per share did the company pay during the year?a. P9.60b. P6.40c. P16d. P15
Grand Company reported the following on its income statement: Income before income taxes$ ,000 Income tax expense 100,000 Net income $300,000 An analysis of the income statement revealed that interest expense was $ 100, 000 . Grand Company's times interest earned was?
Hsu Company reported the following on its income statement: Income before income taxes $330,740 Income tax expense 99,222 Net income $231,518 Interest expense was $72,287. Hsu Company's times interest earned ratio (rounded to two decimal places) is a.3.2 times b.2.2 times c.5.58 times d.4.58 times
1. During 2021, Target Corporation had: Revenue of $623,000 Cost of Goods Sold of $250,000 Operating expenses of $68,000 Interest expense of $4,000 Depreciation Expense of $13,000 During the year Target Corporation paid: 50% of net income in dividends 21% in corporate taxes a. Prepare a multi-step income statement on Sheet 1 of your spreadsheet. Include the dividend and additions to Retained Earnings below the income statement. b. Calculate Target's Operating Cash Flow beneath the Income Statement. 2. The following data refers to the 2021 year-end account balances for Target. However, the Retained Earnings balance is as of 12/31/2020. The accounts are listed in alphabetical order. $ Accounts Payable 25,000 Accounts Receivable 16,000 Accumulated Depreciation 175,000 Cash 44,000 Common Stock 120,000 Fixed Assets (gross) 390,000…
Byron Books Inc. recently reported $13 million of net income. ItsEBIT was $20.8 million, and its tax rate was 35%. What was its interest expense? (Hint:Write out the headings for an income statement, and fill in the known values. Then divide$13 million of net income by (1 2T) 5 0.65 to find the pretax income. The differencebetween EBIT and taxable income must be interest expense. Use this same procedure tocomplete similar problems.)

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	YEAR 1	YEAR 2
Earnings before interest and taxes (EBIT)	16,000	44,000
Less: Interest	5,000	?
Net profit before tax	11,000	?
Less: Tax(0.40)	4,400	?
Net profit after tax	6,600	?
Less: Preferred stock dividend	3,400	?
Earnings available for common shareholders	3,200	?
Earnings Per Share(EPS)	2.13	?