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Hardister corp hardister corp has the following

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62.Hardister Corp.Hardister Corp. has the following information available from its financial statements for2012:Balancesheetinformation:Income statementinformation:AssetsCurrent assets$ 400,000Sales (all on account)$3,000,000Long-term assets600,000Cost of goods sold1,500,000Total assets$1,000,000Salary expense200,000Miscellaneousexpenses400,000LiabilitiesInterest expense100,000Current liabilities$ 200,000Income before taxes$ 800,000Long-term liabilities100,000Income tax expense300,000Total liabilities$300,000Net income$500,000Stockholders'EquityCapital stock$ 300,000Retained earnings400,000Total Stockholders' Equity$700,000Refer to the Hardister Corp. information above. At the end of 2012, Hardister's common stock was listed on the stockexchange as having a market price of $65 per share and there are 10,000 shares outstanding. Hardister has nopreferred stock. What would be Hardister'sprice earnings (P/E) ratiofor 2012? (round to two decimal places)A. 7.69 to 1B. 12.31 to 1C. 1.30 to 1D. .77 to 1
63. Which of the following ratios would be the best measure of profitability?
64. Which of the following ratios would not be the best measure of profitability?
65.Grogan Inc.Grogan Inc. had the following information available from its 2011 and 2012 financialstatements:Balance sheet information:20112012Current assets$ 15,000$ 20,000Long-term assets107,000207,000Total assets$122,000$227,000Current liabilities$ 16,000$ 11,500Long-term liabilities40,00060,000Total liabilities$56,000$71,500Common stock$ 30,000$71,750Retained earnings36,00083,750Total stockholders' equity$66,000$155,500Income statement information:Income before interest and taxes$ 50,000$105,000Interest expense4,0006,000Tax expense10,00026,250Net income$36,000$72,750Other information:Dividends paid to stockholders$ 0Average income tax rate20%25%Net cash flows from operations$25,000$75,000Cash paid for acquisitions$10,000$85,000Refer to the Grogan Inc. information above. Performing ahorizontal analysison Grogan's total assets shows thatthey have:$25,000
66.Grogan Inc.Grogan Inc. had the following information available from its 2011 and 2012 financialstatements:Balance sheet information:20112012Current assets$ 15,000$ 20,000Long-term assets107,000207,000Total assets$122,000$227,000Current liabilities$ 16,000$ 11,500Long-term liabilities40,00060,000Total liabilities$56,000$71,500Common stock$ 30,000$71,750Retained earnings36,00083,750Total stockholders' equity$66,000$155,500

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Term
Spring
Professor
GeoffreyL.Willinger
Tags
Balance Sheet, Generally Accepted Accounting Principles

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