The Balance Sheet for Finley Corporation at the End of the Current

question 141

Essay

The balance sheet for Finley Corporation at the end of the current year indicates the following: Profit before income taxes was $960,000 and income taxes expense for the current year amounted to $288,000. Cash dividends paid on common shares were $300,000, and the common shares were selling for $45 per share at the end of the year. There were no ownership changes during the year.
Instructions
Determine each of the following:
a. number of times that bond interest was covered.
b. earnings per share.
c. price-earnings ratio.
d. payout ratio on common shares.

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Definitions:

Involuntary Turnover

The termination of employees from their jobs due to reasons not initiated by the employees themselves, such as layoffs or dismissals.

Voluntary Turnover

The situation where employees choose to leave their jobs, initiated by the employee rather than the employer.

Interactional justice

Refers to the perceived fairness of the interpersonal treatment people receive from managers or employers during organizational decision-making processes.

Employee Turnover

The rate at which employees leave a company and are replaced by new employees.