accounting ch12-3

accounting ch12-3 - Question 1: Score 5/5 Your response...

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Unformatted text preview: Question 1: Score 5/5 Your response Correct response International Imports Corporation reported the following for its fiscal year ended June 30, 2007: Sales $ 640,000 Cost of sales 470,000 Gross margin 170,000 Expenses* 94,000 Net income $ 76,000 *Included in the expenses were $9,000 of interest expense and $14,000 of income tax expense. At the beginning of the year, the company had 40,000 shares of common stock outstanding and no preferred stock. At the end of the year, there were 25,000 common shares outstanding and no preferred stock. The market price of the company's stock at year-end was $15 per share. The company declared and paid $46,000 of dividends near year end. Required: Calculate earnings per share, the price—earnings ratio, and times-interest-earned for International Imports. (Round your answer to 2 decimal places.) Earnings per share 2.34 (33%) Price—earnings ratio 6.41 (33%) Times-interest-earned 11 (33%) International Imports Corporation reported the following for its fiscal year ended June 30, 2007: Sales $ 640,000 Cost of sales 470,000 Gross margin 170,000 Expenses* 94,000 Net income $ 76,000 *Included in the expenses were $9,000 of interest expense and $14,000 of income tax expense. At the beginning of the year, the company had 40,000 shares of common stock outstanding and no preferred stock. At the end of the year, there were 25,000 common shares outstanding and no preferred stock. The market price of the company's stock at year-end was $15 per share. The company declared and paid $46,000 of dividends near year end. Required: Calculate earnings per share, the price—earnings ratio, and times-interest-earned for International Imports. (Round your answer to 2 decimal places.) Earnings per share 2.34 Price—earnings ratio 6.41 Times-interest-earned 11 Feedback: Earnings per share Price—earnings ratio Times-interest-earned Question 2: Score 5/5 Your response Correct response Chevron Texaco Corporation Consolidated Statement of Income For the year ended December 31, (in millions except per-share amounts) Year ended December 31, 2004 2003 2002 Revenues and other income Sales and other operating revenues $ 150,865 $ 119,575 $ 98,340 Income (loss) from equity affiliates 2,582 1,029 (25 ) Other income 1,853 308 222 Gain from exchange of dynegy, preferred stock 365 Total revenues and other income 155,300 121,277 98,537 Costs and other deductions Purchased crude oil and products 94,419 71,310 57,051 Operating expenses 9,832 8,500 7,795 Selling, general and administrative expenses 4,557 4,440 4,155 Exploration expenses 697 570 591 Depreciation, depletion and amortization 4,935 5,326 5,169 Taxes other than on income 19,818 17,901 16,682 Interest and debt expense 406 474 565 Minority interests 85 80 57 Write-down of investments in dynegy, Inc....
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This note was uploaded on 04/16/2008 for the course BUS 230A taught by Professor S during the Spring '08 term at Sonoma.

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accounting ch12-3 - Question 1: Score 5/5 Your response...

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