Peyton’s Palace has net income of $14 million on sales revenue of $120 million. Total assets were $86 million at the beginning of the year and $94 million at the end of the year. Calculate Peyton’s return on assets, profit margin, and asset turnover ratios.
The income statement for Monkey, Co. shows income before income taxes $400,000, income tax expense $120,000, and net income $280,000. If Monkey has 100,000 shares of common stock outstanding throughout the year, earnings per share is:
a. $4.00.
b. $2.80.
c. $1.20.
d. $1.00.
According to FASB Statement No. 34, interest must be capitalized for
a) assets that are ready to use.
b) assets constructed for a firm’s use.
c) assets that are not being used in the earning activities of the company.
d) inventories that are produced in large quantities on a repetitive basis.
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