Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. use the following to answer questions 28-29: raney

Use the following to answer questions 28-29: Raney Corporation had net income of $200,000 and...

90.2K

Verified Solution

Question

Accounting

image

Use the following to answer questions 28-29: Raney Corporation had net income of $200,000 and paid dividends to common stockholdereor S50.000 in 2016. The weighted average number of shares outstanding in 2016 was 50.000 shares Raney Corporation's common stock is selling for $40 per share on the New York S Exchange. 28. Raney Corporation's price-earnings ratio is A) 2.5 times. B) 10 times. C) 13.3 times. D) 4 times. 29. Raney Corporation's payout ratio for 2016 is A) $4 per share, B) 33.3% C) 25% D) 10% 30. Holt Company reported the following on its income statement: $420,000 120,000 $300.000 Income before income taxes Income tax expense Net income An analysis of the income statement revealed that interest expense was $52,500. Holt Company's time interest earned was A) 9 times. B) 8 times. C) 7 times D) 6 times. Use the following to answer question 31: Risen Company had $250,000 of current assets and $90,000 of current liabilities before borrowing $50,000 from the bank with a 3-month note payable. 31. What effect did the borrowing transaction have on the amount of Risen Company's working capital? A) No effect B) $50,000 increase C) $90,000 increase D) $50,000 decrease Pg. 10

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Basic Math
1.2K views

Below is a list of gas mileage ratings for selected passenger cars in miles per gallon. 16.2...

Biology
1.2K views

How are transport vesicles made? How do they select their cargo? How do they find their target membrane? How...

Accounting
1.2K views

Beztec Limited produces two models of Printers: the Lexon, which Beztec has produced since 2014 and...

Biology
1.2K views

Which glial cells makes cerebrospinal fluid Omicroglia ependymal cells oligodendrocytes

Geometry
1.2K views

Use the diagram to answer the following questio The diagram shows AABC y A Which...

Basic Math
1.2K views

Select 4 numbers that are equal to 10 0 06 0 60 6 60 6...

Basic Math
1.2K views

A bank account has an initial deposit of 16 000 After 7 years the bank...

Basic Math
1.2K views

Which function translates each point on the graph of y = mx + b so...

Accounting
1.2K views

Astro Company sold 24,500...

Accounting
1.2K views

Last month when Holiday Creations, Incorporated, sold 40,000 units, total sales were $160,000, total variable...

Accounting
1.2K views

Spicer Inc showed the following alphabetized list of adjusted account balances at December 31, 2023;...

Accounting
1.2K views

Discuss the various functions of a remuneration committee as provided in the Malaysian Code of...