Lindboe Corporation Has Provided the Following Financial Data

question 184

Essay

Lindboe Corporation has provided the following financial data: Dividends on common stock during Year 2 totaled $4,800. The market price of common stock at the end of Year 2 was $5.46 per share.
Required:
a. What is the company's times interest earned for Year 2?
b. What is the company's debt-to-equity ratio at the end of Year 2?
c. What is the company's equity multiplier at the end of Year 2?
d. What is the company's net profit margin percentage for Year 2?
e. What is the company's gross margin percentage for Year 2?
f. What is the company's return on total assets for Year 2?
g. What is the company's return on equity for Year 2?

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Definitions:

Closing Entry Process

The procedure at the end of an accounting period to prepare the accounts for the next period by clearing out revenues and expenses into the Retained Earnings account.

Temporary Accounts

Accounts used to collect information during a single accounting period, which are then transferred to permanent accounts at the end of the period.

Permanent Accounts

Accounts that carry their ending balances over into the next accounting period; these include asset, liability, and equity accounts.

Prepaid Rent

Prepaid Rent represents payments made in advance for rent, which is recorded as an asset on the balance sheet and expensed over time as it is used.