127.The following information pertains to Cheng Company. Assume that all statement of financial position amounts represent both average and ending balance figures. Assume that all sales were on credit. All amounts are in thousands except per share items.
Assets
Property, plant and equipment¥ 215,000
Inventory25,000
Accounts receivable (net)30,000
Cash and short-term investments 40,000
Total Assets¥310,000
Equity and Liabilities
Shareholders’ equity—ordinary¥ 155,000
Non-current liabilities95,000
Current liabilities 60,000
Total Equity and Liabilities¥310,000
Income Statement
Sales revenue¥ 90,000
Cost of goods sold 45,000
Gross margin45,000
Operating expenses 20,000
Net income¥ 25,000
Number of ordinary shares6,000
Market price of ordinary shares$20
Dividends per share1.00
What is the profit margin for Cheng?
a.50.0%
b.55.6%
c.23.5%
d.27.8%
128.The following information pertains to Cheng Company. Assume that all statement of financial position amounts represent both average and ending balance figures. Assume that all sales were on credit. All amounts are in thousands except per share items.
Assets
Property, plant and equipment¥ 215,000
Inventory25,000
Accounts receivable (net)30,000
Cash and short-term investments 40,000
Total Assets¥310,000
Equity and Liabilities
Shareholders’ equity—ordinary¥ 155,000
Non-current liabilities95,000
Current liabilities 60,000
Total Equity and Liabilities¥310,000
Income Statement
Sales¥ 90,000
Cost of goods sold 45,000
Gross margin45,000
Operating expenses 20,000
Net income¥ 25,000
Number of ordinary shares6,000
Market price of ordinary shares$20
Dividends per share1.00
What is the return on ordinary shareholders’ equity for Cheng?
a.7.3%
b.16.1%
c.23.5%
d.53.3%
129.The following information pertains to Cheng Company. Assume that all statement of financial position amounts represent both average and ending balance figures. Assume that all sales were on credit. All amounts are in thousands except per share items.
Assets
Property, plant and equipment¥ 215,000
Inventory25,000
Accounts receivable (net)30,000
Cash and short-term investments 40,000
Total Assets¥310,000
Equity and Liabilities
Shareholders’ equity—ordinary¥ 155,000
Non-current liabilities95,000
Current liabilities 60,000
Total Equity and Liabilities¥310,000
MC 129.(Cont.)
Income Statement
Sales revenue¥ 90,000
Cost of goods sold 45,000
Gross margin45,000
Operating expenses 20,000
Net income¥ 25,000
Number of ordinary shares6,000
Market price of ordinary shares$20
Dividends per share1.00
What is the price-earnings ratio for Cheng?
a.6 times
b.4.2 times
c.8.0 times
d.4.8 times
130.The following information is available for Charles Company:
2014 2013
Accounts receivable$ 460,000$ 500,000
Inventory 340,000420,000
Net credit sales2,470,0001,400,000
Cost of goods sold1,860,0001,060,000
Net income300,000170,000
The accounts receivable turnover for 2014 is
a.1.6 times.
b.5.4 times.
c.5.1 times.
d.3.9 times.
131.The following information is available for Charles Company:
2014 2013
Accounts receivable$ 460,000$ 500,000
Inventory 340,000420,000
Net credit sales2,470,0001,400,000
Cost of goods sold1,860,0001,060,000
Net income300,000170,000
The inventory turnover for 2014 is
a.6.2 times.
b.4.9 times.
c.5.5 times.
d.4.4 times.
132.The following amounts were taken from the financial statements of Palmer Company:
2014 2013
Total assets$800,000$1,000,000
Net sales720,000650,000
Gross profit352,000320,000
Net income144,000117,000
Weighted average number of ordinary shares outstanding120,000120,000
Market price of ordinary shares$36$40
The return on assets for 2014 is
a.18%.
b.16%.
c.36%.
d.32%.
133.The following amounts were taken from the financial statements of Palmer Company:
2014 2013
Total assets$800,000$1,000,000
Net sales720,000650,000
Gross profit352,000320,000
Net income144,000117,000
Weighted average number of ordinary shares outstanding120,000120,000
Market price of ordinary shares$36$40
The profit margin for 2014 is
a.10%.
b.15%.
c.20%.
d.30%.
134.The following amounts were taken from the financial statements of Palmer Company:
2014 2013
Total assets$800,000$1,000,000
Net sales720,000650,000
Gross profit352,000320,000
Net income144,000117,000
Weighted average number of ordinary shares outstanding120,000120,000
Market price of ordinary shares$36$40
The price-earnings ratio for 2013 is
a.30 times.
b.20 times.
c.10 times.
d.5 times.
135.Miley Corporation had net income of €250,000 and paid dividends to ordinary shareholders of €50,000 in 2014. The weighted average number of shares outstanding in 2014 was 50,000 shares. Miley Corporation's ordinary shares are selling for €40 per share.
Miley Corporation's price-earnings ratio is
a.2 times.
b.8 times.
c.10 times.
d.5 times.
136.Miley Corporation had net income of €250,000 and paid dividends to ordinary shareholders of €50,000 in 2014. The weighted average number of shares outstanding in 2014 was 50,000 shares. Miley Corporation's ordinary shares are selling for €40 per share on the New York Stock Exchange.
Miley Corporation's payout ratio for 2014 is
a.25%.
b.20%.
c.12.5%.
d.$5 per share.