Condensed balance sheet and income statement data for Kersenbrock Corporation ap
ID: 2372414 • Letter: C
Question
Condensed balance sheet and income statement data for Kersenbrock Corporation appear below.
December 31
397,800
365,300
361,900
$637,690
$593,290
$535,270
143,860
118,970
114,610
$637,690
$593,290
$535,270
For the Year Ended December 31
39,100
50,200
419,800
399,800
234,800
220,000
$ 53,100
$ 42,900
Additional information:
The market price of Kersenbrock's common stock was $5.00, $5.00, and $9.00 for 2010, 2011, and 2012, respectively.
All dividends were paid in cash.
Compute the following ratios for 2011 and 2012. (1) Profit margin. (2) Asset turnover. (3) Earnings per share. (Weighted average common shares in 2012 were 34,200 and in 2011 were 33,200.) (4) Price-earnings. (5) Payout. (6) Debt to total assets. (Round earnings per share to 2 decimal places, e.g. 10.50 and all other answers to 1 decimal place, e.g. 10.5. Use the rounded amount for future calculations.)
KERSENBROCK CORPORATION Balance SheetsDecember 31
2012 2011 2010 Cash $ 25,790 $ 19,100 $ 17,490 Receivables (net) 49,100 45,230 47,240 Other current assets 89,440 94,260 64,560 Investments 75,560 69,400 44,080 Plant and equipment (net)397,800
365,300
361,900
$637,690
$593,290
$535,270
Current liabilities $ 74,710 $ 79,920 $ 70,610 Long-term debt 79,420 85,400 50,450 Common stock, $10 par 339,700 309,000 299,600 Retained earnings143,860
118,970
114,610
$637,690
$593,290
$535,270
Explanation / Answer
1. 2011 Profit margin = 6.5% 2012 profit margin = 7.5%
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