Bonus Question Assignment

# Bonus Question Assignment - calculator or printer Some...

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Syed Abdullah Mannan Introduction to Financial Accounting Date: 10-05-2011 Bonus Question Assignment 1. On February 28 th 2008, Office Depot stock sold for about \$35.00 per share. The company had net income of \$3,275 million for the fiscal year ending February 28 th 2008, had an average of \$1,895 million shares outstanding during the year, and paid dividends of \$.69 per share. Calculate the Earnings per share, Price-earnings ratio and Dividend-payout ratio. Answer- Earnings per share = Net Income / average number of common shares outstanding = \$3,275 / \$1,895 = \$1.728 Price-earnings ratio = market price per share of common stock / earnings per share of common stocks = \$35.00 / \$1.728 = \$20.25 Dividend-payout ratio = Common dividends per share / Earnings per share = \$.69 / \$1.728 = 39.9% 2. Canon designs, manufactures, and services a broad array of products including perhaps your
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Unformatted text preview: calculator or printer. Some results of product sales for the year ended October 31, 2009, were as follows (millions): Sales of products \$90,000 Cost of merchandise sold 70,000 Beginning merchandise inventory 8,000 Ending merchandise inventory 7,000 i. Calculate the 2009 gross profit and gross profit percentage for Canon. ii. Calculate the inventory turnover ratio. Answer-i. Gross profit = Sale – Cost of merchandise sold = 90,000 – 70,000 = \$20,000 Gross profit percentage = Gross profit / Sales = 20,000 / 90,000 = 22% ii. Inventory turnover = Cost of merchandise sold / Average merchandise inventory = 70,000 / [ ( 8,000 + 7,000 ) / 2 ] = 70,000 / 7,500 = 9.3...
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