Question

At December 31 2015 2014 2013 Assets Cash $ 31,800 $ 35,625 $ 37,800 Accounts receivable, net 89,500 62,500 50,200 Merchandise Inventory 112,500 82,500 54,000 Prepaid expenses 10,700 9,375 5,000 Plant assets, net 278,500 255,000 230,500 Total assets $ 523,000 $ 445,000 $ 377,500 Liabilities and Equity Accounts payable $ 129,900 $ 75,250 $ 51,250 Long-term notes payable secured by mortgages on plant assets 98,500 101,500 83,500 Common stock, $10 par value 163,500 163,500 163,500 Retained earnings 131,100 104,750 79,250 Total liabilities and equity $ 523,000 $ 445,000 $ 377,500 At December 31 2015 2014 2013 Assets Cash $ 31,800 $ 35,625 $ 37,800 Accounts receivable, net 89,500 62,500 50,200 Merchandise Inventory 112,500 82,500 54,000 Prepaid expenses 10,700 9,375 5,000 Plant assets, net 278,500 255,000 230,500 Total assets $ 523,000 $ 445,000 $ 377,500 Liabilities and Equity Accounts payable $ 129,900 $ 75,250 $ 51,250 Long-term notes payable secured by mortgages on plant assets 98,500 101,500 83,500 Common stock, $10 par value 163,500 163,500 163,500 Retained earnings 131,100 104,750 79,250 Total liabilities and equity $ 523,000 $ 445,000 $ 377,500 2) price earnings ratio on december 31 3) dividend yield

Accounting 2

Answer 1

Below is the table of information basis the information given.

		2015	2014	2013
31st Dec	Assets:	in $	in $	in $
	Cash	31,800	35,625	37,800
	Accounts Receivable (Net)	89,500	62,500	50,200
	Inventory	112,500	82,500	54,000
	Prepaid Exp	10,700	9,375	5,000
	Plant (Net)	278,500	255,000	230,500
	Total Assets	523,000	445,000	377,500
31st Dec	Liabilities & equity
	Accounts Payable	129,900	75,250	51,250
	Long term notes payable	98,500	101,500	83,500
	Common Stock ($10 par Value)	163,500	163,500	163,500
	Retained earnings	131,100	104,750	79,250
	Total Liabilities & equity	523,000	445,000	377,500

Calculation of PE Ratio & Dividend Yield:
	2015	2014	2013
Number of common stock (Common stock Value/Value per share)	163500/10	163500/10	163500/10
Number of shares	16,350	16,350	16,350
Earning per share (EPS) = (Retained earnings/Number of Shares)	131100/16350	131100/16350	131100/16350
EPS	8.02	6.41	4.85
Common Stock Price (as given)	10	10	10
Price Earning Ratio= Common Stock price/EPS)	10/8.02	10/6.41	10/4.85
PE Ratio	1.25	1.56	2.06
Dividend Yield ratio = (EPS/Common Stock Price)	8.02/10	6.41/10	4.85/10
Dividen Yield	0.80	0.64	0.48