Financial Statements Essay; Price Earning Ratio Custom Essay

[meteor_slideshow slideshow=”hp1″]

Financial Statements for Larkins Compnay appear below:
Larkins Company
Statement of financial Position
December 31, Year 2 and Year 1
(dollars in thousands)

Current assets: Year 2 Year 1
Cash and marketable securities $180 $180
Accounts receivable, net 210 180
Inventory 130 120
Prepaid expenses 50 50
Total current assets 570 530
Noncurrent assets:
Plant & equipment, net 1,540 1,480
Total Assets $2,110 $2,010

Current liabilities:
Accounts Payable $100 $130
Accrued liabilities 60 60
Notes payable, short term 90 120
Total current liabilities 250 310
Noncurrent liabilities:
Bonds payable 480 500
Total liabilities 730 810
Stockholder’s equity:
Preferred stock, $20 par, 10% 120 120
Common stock, $10 par 180 180
Additional paid-in-capital–common stock 240 240
Retained earning 840 660
Total stockholder’s equity 1,380 1,200
Total liabilities & stockholder’s equity $2,110 $2,010

Larkins Company
Income Statement
For the year ended December 31, Year 2
(dollars in thousands)
Sales (all on account) $2,760
Cost of goods sold 1,930
Gross margin 830
Selling and admin expenses 330
Net operating income 500
Interest expense 50
Net income before taxes 450
Income taxes (30%) 135
Net income $315

Dividends during Year 2 totaled $135 thousand, of which $12 thousand were preferred dividends. The market price of a share of common stock on December 31, Year 2 was $150.

Larkin’s Company’s price earnings ratio on December 31, Year 2 was closest to
A. 8.91
B. 20.79
C. 8.57
D. 6.00

[meteor_slideshow slideshow=”hp4″]

Place your order
(550 words)

Approximate price: $22

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
The price is based on these factors:
Academic level
Number of pages
Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Read more

Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Read more

Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

Read more

Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

Read more