6. Balance Sheet Assets Liabilities Current Assets Current Liabilities Cash . . . . . ....
|
6. |
|
Balance Sheet |
||||
|
Assets |
Liabilities |
|||
|
Current Assets |
Current Liabilities |
|||
|
Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . |
49 |
Accounts payable . . . . . . . . . . . . . . . . . . . . . |
41 |
|
|
Accounts receivable . . . . . . . . . . . . . . . . . . |
24 |
Notes payable/short term debt . . . . . . . . . . . |
7 |
|
|
Inventories . . . . . . . . . . . . . . . . . . . . . . . . . . . . |
19 |
Total current liabilities . . . . . . . . . . . . . . . . |
48 |
|
|
Total current assets . . . . . . . . . . . . . . . . . . . . . |
92 |
|||
|
Long-Term Assets |
Long-Term Liabilities |
|||
|
Net property, plant, and equipment . . . . . . . . . |
118 |
Long-term debt . . . . . . . . . . . . . . . . . . . . . . . . |
129 |
|
|
Total long-term assets . . . . . . . . . . . . . . . . . . . |
118 |
Total long-term liabilities . . . . . . . . . . . . . . . . |
129 |
|
|
Total liabilities . . . . . . . . . . . . . . . . . . . . |
177 |
|||
|
Stockholders' Equity . . . . . . . . . . . . . . . . . . |
33 |
|||
|
Total assets . . . . . . . . . . . . . . . . . . . . . . . . . . . |
210 |
Total liabilities and stockholders' Equity |
210 |
|
The above diagram shows a balance sheet for a certain company. All quantities shown are in millions of dollars. If the company has 5 million shares outstanding, and these shares are trading at a price of $6.59 per share, what does this tell you about how investors view this firm's book value?
A. Investors consider that the firm's market value and its book value are roughly equivalent.
B. Investors consider that the firm's market value is worth very much less than its book value.
C. Investors consider that the firm's market value is worth more than its book value.
D. Investors consider that the firm's market value is worth less than its book value.
Homework Answers
Share outstanding =5 million
Price per share =$6.59
Market capitalisation = Price * outstanding share
=$6.59*5 i.e. $32.95 million
As per balance sheet book value of company=$33 million
so answer is pt A i.e.Investors consider that the firm's market value and its book value are roughly equivalent as market capitalisation is approximately equal to book value.
Add Answer to:
6.
Balance Sheet
Assets
Liabilities
Current Assets
Current Liabilities
Cash
. . . . . ....
Balance Sheet Assets Liabilities Current Assets Current Liabilities Cash . . . . . . ....
Balance Sheet Assets Liabilities Current Assets Current Liabilities Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48 Accounts payable . . . . . . . . . . . . . . . . . . . . . 36 Accounts receivable . . . . . . . . . . . . . . ....
Balance Sheet Assets Current Assets Cash Accounts receivable Inventories Total current assets Liabilities Current Liabilities $47...
Balance Sheet Assets Current Assets Cash Accounts receivable Inventories Total current assets Liabilities Current Liabilities $47 Accounts payable 23 Total current liabilities $40 40 86 Long-Term Liabilities Long-Term Assets Net property, plant, and equipment Total long-term assets 170 164 Long-term debt Total long-term 164 liabilities 170 Total Assets 250 210 Total Liabilities Stockholders' Equity Total Liabilities and Stockholders' Equity 250 The balance sheet for a small firm is shown above. All amounts are in thousands of dollars What is this...
Balance Sheet Assets Liabilities Current Liabilities Current Assets 49 36 20 Accounts payable Notes payable/short term...
Balance Sheet Assets Liabilities Current Liabilities Current Assets 49 36 20 Accounts payable Notes payable/short term debt Total current liabilities ====== Cash Accounts receivable Inventories Total current assets 5 15 41 84 Long-Term Assets Long-Term Liabilities O A. - $1 million OB. $6 million OC. $43 million OD. - $6 million Long-Term Assets Long-Term Liabilities Net property, plant, and equipment Total long-term assets 126 126 Long-term debt Total long term abilities 135 135 Total liabilities Stockholders' Equity Total liabilities and...
Suppose the Schoof Company has this book value balance sheet: Current assets $30,000,000 Current liabilities $10,000,000...
Suppose the Schoof Company has this book value balance sheet: Current assets $30,000,000 Current liabilities $10,000,000 Fixed assets 50,000,000 Long-term debt 30,000,000 Common stock (1 million shares) 1,000,000 Retained earnings 39,000,000 Total assets $80,000,000 Total claims $80,000,000 The current liabilities consist entirely of notes payable to banks, and the interest rate on this debt is 9%, the same as the rate on new bank loans. These bank loans are not used for seasonal financing but instead are part of the...
The current assets and current liabilities sections of the balance sheet of Sheffield Company appear as...
The current assets and current liabilities sections of the
balance sheet of Sheffield Company appear as follows.
The current assets and current liabilities sections of the balance sheet of Shetfield Company appear as fcllows. LD COMPANY BALANCE SHEET (PARTIAL) DECEMBER 31, 2017 Cash 43,100 Accounts payable 63,430 Accounts receivable $91,400 Nates payable Less: Allowance for doubtful accounts 9,290 3,110 155,030 9,460 5300,700 $126,940 Prepaid expenses The following errors in tha corporation's accounting have been discovered: 1. January 2018 cash disbursements...
Here is a simplified balance sheet for Locust Farming: Current assets Long-term assets Locust Farming Balance...
Here is a simplified balance sheet for Locust Farming: Current assets Long-term assets Locust Farming Balance Sheet (5 in Lions) $ 42,524 Current liabilities 46,832 Long-term debt Other liabilities Equity $ 89,356 Total $29,755 27,752 14,317 17 532 $ 89,356 Total Locust has 657 million shares outstanding with a market price of $83 a share. a. Calculate the company's market value added. (Enter your answers in millions.) Market value Market value added b. Calculate the market-to-book ratio. (Round your answer...
P 7-4 Kaufman Company's balance sheet follows. Assets Current assets Cash Short-term investments at cost (approximate...
P 7-4 Kaufman Company's balance sheet follows. Assets Current assets Cash Short-term investments at cost (approximate market) Trade accounts receivable, less allowance of $1,590 Inventories at lower of cost (average method) or market: Finished merchandise Work in process, raw materials, and supplies $ 13,445 5,239 88,337 113.879 47,036 160,915 8,221 276,157 Prepaid expenses Total current assets Other assets: Receivables, advances, and other assets Intangibles Total other assets Property, plant, and equipment: Land Buildings Machinery and equipment 4,473 2,324 6,797 5,981...
Lei Materials' balance sheet lists total assets of $ 1.46 billion, $ 149 million in current...
Lei Materials' balance sheet lists total assets of $ 1.46 billion, $ 149 million in current liabilities, $ 468 million in long-term debt, $ 843 million in common equity, and 51 million shares of common stock. If Lei's current stock price is $ 47.12 , what is the firm's market-to-book ratio? The market-to-book ratio is nothing .
Here is a simplified balance sheet for Locust Farming: Current assets Long-term assets Locust Farming Balance...
Here is a simplified balance sheet for Locust Farming: Current assets Long-term assets Locust Farming Balance Sheet ($ in millions) $ 42,534 Current liabilities 46,852 Long-term debt Other liabilities Equity $ 89,386 Total $ 29,745 27,762 14,337 17,542 $ 89,386 Total Locust has 667 million shares outstanding with a market price of $93 a share. a. Calculate the company's market value added. (Enter your answers in millions.) Market value million Market value added million b. Calculate the market-to-book ratio. (Round...
Please explain Cracker Company Balance Sheet December 31, 2013 Assets Liabilities Current Assets: Current Liabilities: Cash...
Please explain
Cracker Company Balance Sheet December 31, 2013 Assets Liabilities Current Assets: Current Liabilities: Cash $ 100 Accounts Payable Accounts Receivable $ 500 Wages Payable Inventory $1,000 Warranty Payable Total Current Assets $1,600 Total Current Liabilities Operating Assets $1,000 Longterm Liabilities Total Liabilities Other Assets | $ 400 Stockholders' Equity: Total Assets $3,000 Common Stock 1,000 shares issued and outstanding Additional Paid In Capital Common Stock Total SE Liabilities and Total SE $ 500 $ 150 $ 150 $...
Balance Sheet Assets Current Assets Cash Accounts receivable Inventories Total current assets Liabilities Current Liabilities $47 Accounts payable 23 Total current liabilities $40 40 86 Long-Term Liabilities Long-Term Assets Net property, plant, and equipment Total long-term assets 170 164 Long-term debt Total long-term 164 liabilities 170 Total Assets 250 210 Total Liabilities Stockholders' Equity Total Liabilities and Stockholders' Equity 250 The balance sheet for a small firm is shown above. All amounts are in thousands of dollars What is this...
Balance Sheet Assets Liabilities Current Liabilities Current Assets 49 36 20 Accounts payable Notes payable/short term debt Total current liabilities ====== Cash Accounts receivable Inventories Total current assets 5 15 41 84 Long-Term Assets Long-Term Liabilities O A. - $1 million OB. $6 million OC. $43 million OD. - $6 million Long-Term Assets Long-Term Liabilities Net property, plant, and equipment Total long-term assets 126 126 Long-term debt Total long term abilities 135 135 Total liabilities Stockholders' Equity Total liabilities and...
The current assets and current liabilities sections of the
balance sheet of Sheffield Company appear as follows.
The current assets and current liabilities sections of the balance sheet of Shetfield Company appear as fcllows. LD COMPANY BALANCE SHEET (PARTIAL) DECEMBER 31, 2017 Cash 43,100 Accounts payable 63,430 Accounts receivable $91,400 Nates payable Less: Allowance for doubtful accounts 9,290 3,110 155,030 9,460 5300,700 $126,940 Prepaid expenses The following errors in tha corporation's accounting have been discovered: 1. January 2018 cash disbursements...
Here is a simplified balance sheet for Locust Farming: Current assets Long-term assets Locust Farming Balance Sheet (5 in Lions) $ 42,524 Current liabilities 46,832 Long-term debt Other liabilities Equity $ 89,356 Total $29,755 27,752 14,317 17 532 $ 89,356 Total Locust has 657 million shares outstanding with a market price of $83 a share. a. Calculate the company's market value added. (Enter your answers in millions.) Market value Market value added b. Calculate the market-to-book ratio. (Round your answer...
P 7-4 Kaufman Company's balance sheet follows. Assets Current assets Cash Short-term investments at cost (approximate market) Trade accounts receivable, less allowance of $1,590 Inventories at lower of cost (average method) or market: Finished merchandise Work in process, raw materials, and supplies $ 13,445 5,239 88,337 113.879 47,036 160,915 8,221 276,157 Prepaid expenses Total current assets Other assets: Receivables, advances, and other assets Intangibles Total other assets Property, plant, and equipment: Land Buildings Machinery and equipment 4,473 2,324 6,797 5,981...
Here is a simplified balance sheet for Locust Farming: Current assets Long-term assets Locust Farming Balance Sheet ($ in millions) $ 42,534 Current liabilities 46,852 Long-term debt Other liabilities Equity $ 89,386 Total $ 29,745 27,762 14,337 17,542 $ 89,386 Total Locust has 667 million shares outstanding with a market price of $93 a share. a. Calculate the company's market value added. (Enter your answers in millions.) Market value million Market value added million b. Calculate the market-to-book ratio. (Round...
Please explain
Cracker Company Balance Sheet December 31, 2013 Assets Liabilities Current Assets: Current Liabilities: Cash $ 100 Accounts Payable Accounts Receivable $ 500 Wages Payable Inventory $1,000 Warranty Payable Total Current Assets $1,600 Total Current Liabilities Operating Assets $1,000 Longterm Liabilities Total Liabilities Other Assets | $ 400 Stockholders' Equity: Total Assets $3,000 Common Stock 1,000 shares issued and outstanding Additional Paid In Capital Common Stock Total SE Liabilities and Total SE $ 500 $ 150 $ 150 $...
Most questions answered within 3 hours.
-
Using MARS simulator, write MIPS programs according to
the following scenarios: Receive a positive integer number...
asked 1 hour ago -
An object in front of a concave mirror has a real image that is
11.5 cm...
asked 1 hour ago -
Consider the reaction, C3 H8 + O2 --> CO2 + H2O. How many
moles of O2...
asked 3 hours ago -
You and your opponent both roll a fair die. If you both roll the
same number,...
asked 3 hours ago -
In a study of the accuracy of fast food drive-through orders,
Restaurant A had 257 accurate...
asked 3 hours ago -
Identify and describe in detail the four categories of
institutions that could be included in a...
asked 3 hours ago -
In python
class Customer:
def __init__(self, customer_id, last_name, first_name, phone_number, address):
self._customer_id = int(customer_id)
self._last_name =...
asked 3 hours ago -
What is an example of a limitation in implementing a new
ERP system and how it...
asked 3 hours ago -
In a section of 9.7cm of an artery with a radius of 2.6mm there
is a...
asked 3 hours ago -
the two carboxylic acid groups of aspartic acid have different
acidities with pKa values of 2.1...
asked 3 hours ago -
Would CuCO3 aqueous salt combined with calcium chloride
form a solid precipitate? If so, what would...
asked 3 hours ago -
How do ECM Solutions assist in embedding a culture of continuous
improvement in an organization? (Project...
asked 3 hours ago