118 which of the following is the formula to compute times interest earned a total 4307937

118 which of the following is the formula to compute times interest earned a total 4307937

118) Which of the following is the formula to compute times-interest-earned?

A) Total liabilities/total assets

B) Interest expense/income from operations

C) Income from operations/interest expense

D) Total assets/total liabilities

119) The formula to compute the rate of return on net sales is

A) net income/net sales.

B) net income/average common stockholder's equity.

C) net income + interest expense, then divide by average total assets.

D) net income/interest expense.

120) Which of the following is the formula for computing the price-earnings ratio?

A) Market price per share of common stock/ earnings per share

B) Annual dividend per share of common stock/ market price per share

C) (Net income- preferred dividends)/ number of shares of outstanding common stock

D) Total stockholder's equity/ number of shares of outstanding common stock

121) The formula for computing earnings per share of common stock is

A) (net income + interest expense) / average total assets.

B) net income/net sales.

C) (net income – preferred dividends) / average common stockholders' equity.

D) (net income – preferred dividends) / number of shares of outstanding common stock.

122) The formula for computing the rate of return on common stockholders' equity is

A) (net income + interest expense) / average total assets.

B) (net income – preferred dividends) / average common stockholders' equity.

C) net income / net sales.

D) (net income – preferred dividends) / number of shares of outstanding common stock.

123) Which of the following is the formula for computing the rate of return on total assets?

A) (Net income – preferred dividends)/number of shares of outstanding common stock

B) Net income/net sales

C) (Net income + interest expense)/average total assets

D) (Net income – preferred dividends)/average common stockholders' equity

124) The formula for computing the dividend yield is

A) annual dividend per share of common stock/market price per share of common stock.

B) market price per share of common stock/earnings per share.

C) total stockholders' equity/number of shares of outstanding common stock.

D) (net income – preferred dividends)/number of shares of outstanding common stock.

125) Earning more income on borrowed money than on the related interest expense is an example of

A) trading on assets.

B) trading on equity.

C) trading on liabilities.

D) all of the above.

126) The formula for computing book value per share of common stock is

A) market price per share of common stock/earning per share.

B) annual dividend per share of common stock/market price per share of common stock.

C) (net income – preferred dividends)/number of shares of common stock outstanding.

D) (total stockholders' equity – preferred equity)/number of shares of common stock outstanding.

127) The Bedford Corporation reported the following income statement and balance sheet amounts and additional information for the end of the current year.

End of current yearEnd of prior

year

Net sales revenue (all credit) $1,220,000

Cost of goods sold $725,000

Gross profit $495,000

Selling/general expenses$280,000

Interest expense$42,000

Net Income$173,000

Current assets $113,000$82,000

Long-term assets$512,000$440,000

Total assets$625,000$522,000

Current liabilities$57,000$52,000

Long-term liabilities$275,000$245,000

Common stockholders' equity$293,000$225,000

Total liabilities and stockholders' equity$625,000$522,000

Inventory and prepaid expenses account for $30,000 of the current year's current assets.

Average inventory for the current year is $36,250.

Average net accounts receivable for the current year is $45,000.

There are 35,000 shares of common stock outstanding.

Total dividends paid during the current year were $17,000.

The market price per share of common stock is $20.

What is the debt ratio for the current year?

A) 1.98

B) .53

C) 2.43%

D) .44

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