Use the Information in the Stock Table Below

question 4

Essay

Use the information in the stock table below.
a. Calculate the P/E ratio by hand, and compare to the P/E ratio in the table. If your result is
different, discuss why you think that may be the case.
b. If a competitor has a P/E ratio of 90.33 and a market price of $85.30, calculate the earning per
share.

---

Definitions:

Overapplied

This term relates to a situation where the allocated costs in accounting exceed the actual indirect costs.

Underapplied

A situation where the allocated overhead cost is less than the actual overhead cost incurred.

Work in Process Account

An account used in accounting to track the costs associated with the production of goods that are not yet complete.

Ending Balance

The amount of money in an account at the end of a period, after all additions and subtractions have been accounted for.