The Following Are the Income Statements and Balance Sheets for Coors

question 17

Multiple Choice

The following are the income statements and balance sheets for Coors Company: $\begin{array}{ll}&20X2\\\text { Sales (only credit sales) } & \$ 1,606.0 \\\text { Less cost of goods sold } & \underline{1,062.0} \\\text { Gross profit } & \$ 544.0 \\\text { Less operating expenses } & \underline{322.0} \\\text { Operatingincome } & \$ 222.0 \\\text { Less other expense: Interest } & \underline{9.6} \\\text { Income before tax } & \$ 212.4 \\\text { Less income tax expense } & \$85.0\end{array}$ $\begin{array}{ll}&20X2\\\text { Sales (only credit sales) } & \$ 1,606.0 \\\text { Less cost of goods sold } & \underline{1,062.0} \\\text { Gross profit } & \$ 544.0 \\\text { Less operating expenses } & \underline{322.0} \\\text { Operatingincome } & \$ 222.0 \\\text { Less other expense: Interest } & \underline{9.6} \\\text { Income before tax } & \$ 212.4 \\\text { Less income tax expense } & \$85.0\end{array}$ Net income $\quad\quad\quad\quad\$ 127.4$
$\begin{array}{llllll}&20X2&20X1&&20X2&20X1\\\text { Current assets: } & & & \text { Current liab: } \\\text { Cash } & \$ 36 & \$ 38 & \text { Accts payable } & \$ 98 & \$ 64 \\\text { Accts receivable } & 180 & 144 & \text { W ages p ayable } & 18 & 16 \\\text { Inventory } & 120 & 100 & \text { Taxes payable } & 28 & 4 \\\text { Prep aid rent } & 20 & 24 & \text { Current portion } & &\\\begin{array}{l}\text { Total current as sets } \\\text { Long-term as sets: }\end{array} & \$ 356 & \$ 306 & \begin{array}{l}\text { of long- term debt } \\\text { Total current }\end{array} & \underline{30} & \underline{6} \\\text { Fixed ass ets } & \$ 320 & \$ 316 & \text { liabilities } & \$ 174 & \$ 90 \\\text { Accum. deprec. } & (206) & (180) & \text { Long-term liabilities } & 66 & 92\\\text { Total long- term } & \$ 114 & \$ 136 & \text { T otal liabilities } & \$ 240 & \$ 182\\\text { assets }\\&&&\text { Owners' equity: }\\\text { Common stock, } \$ 5 \text { par } &\$ 80 & \$ 80\\&&&\text { Retained income } & \underline{150} & \underline{180} \\&&&\text { T otal owners' equity } & \$ 230 & \$ 260\\&&&\text { T ot al liab. and }\\\text { Total assets } & \$ 470 & \$ 442 & \text { own. equity } & \$ 470 & \$ 442\end{array}$
$\text { December } 31 \text { market price per share: } \quad \$ 120 \quad \$ 106$ The dividend- payout ratio for Coors Company in 20X2 is:

• A) 105.0%
• B) 24.1%
• C) 123.5%
• D) 103.7%

---

Definitions:

Poverty Line

A threshold level of income set by governments or organizations, below which individuals or families are considered to be living in poverty.

Average Incomes

The mean income of a population, calculated by dividing the total income of the population by the number of people.

Poverty Definition

The state of being extremely poor, or the condition of those lacking sufficient money or material possessions for their needs.

Educational Attainment

Refers to the highest level of education an individual has completed.