Hardister corp hardister corp has the following

62. Hardister Corp.
Hardister Corp. has the following information available from its financial statements for
2012:
Balance
sheet
informatio
n:
Income statement
information:
Asset
s
Current assets $ 400,000 Sales (all on account) $3,000,000
Long-term assets 600,000 Cost of goods sold 1,500,000
Total assets $1,000,000 Salary expense 200,000
Miscellaneous
expenses
400,000
Liabilities Interest expense 100,000
Current liabilities $ 200,000 Income before taxes $ 800,000
Long-term liabilities 100,000 Income tax expense 300,000
Total liabilities $ 300,000 Net income $ 500,000
Stockholders'
Equity
Capital stock $ 300,000
Retained earnings 400,000
Total Stockholders' Equity $ 700,000
Refer to the Hardister Corp. information above. At the end of 2012, Hardister's common stock was listed on the stock
exchange as having a market price of $65 per share and there are 10,000 shares outstanding. Hardister has no
preferred stock. What would be Hardister's price earnings (P/E) ratio for 2012? (round to two decimal places)
A. 7.69 to 1
B. 12.31 to 1
C. 1.30 to 1
D. .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 financial
statements:
Balance sheet information: 2011 2012
Current assets $ 15,000 $ 20,000
Long-term assets 107,000 207,000
Total assets $122,000 $227,000
Current liabilities $ 16,000 $ 11,500
Long-term liabilities 40,000 60,000
Total liabilities $ 56,000 $ 71,500
Common stock $ 30,000 $71,750
Retained earnings 36,000 83,750
Total stockholders' equity $ 66,000 $155,500
Income statement information:
Income before interest and taxes $ 50,000 $105,000
Interest expense 4,000 6,000
Tax expense 10,000 26,250
Net income $ 36,000 $72,750
Other information:
Dividends paid to stockholders $ 0
Average income tax rate 20% 25%
Net cash flows from operations $25,000 $75,000
Cash paid for acquisitions $10,000 $85,000
Refer to the Grogan Inc. information above. Performing a horizontal analysis on Grogan's total assets shows that
they have:
$25,000
66. Grogan Inc.
Grogan Inc. had the following information available from its 2011 and 2012 financial
statements:
Balance sheet information: 2011 2012
Current assets $ 15,000 $ 20,000
Long-term assets 107,000 207,000
Total assets $122,000 $227,000
Current liabilities $ 16,000 $ 11,500
Long-term liabilities 40,000 60,000
Total liabilities $ 56,000 $ 71,500
Common stock $ 30,000 $71,750
Retained earnings 36,000 83,750
Total stockholders' equity $ 66,000 $155,500