a. Explain why P/E ratio and EPS are used in determining health of a stock? Is...
Q1. (30 marks) A skeleton of Heuristic Solution's balance sheet appears as follows (amounts in thousands): 1 Balance Sheet $ 1,164 2 3 Total current liabilities Long-term debt Other long-term liabilities $ 253 (a) 555 (6) (C) 4 5 826 Cash Receivables Inventories Prepaid expenses Total current assets Property, plant, and equipment, ner Other assets Total assets 7 185 2,846 (d) Common shares Retained earnings Total liabilities and shareholders' equity 8 1,150 $6.315 $ (0) 9 10 Use the following...
A skeleton of Heuristic Solution's balance sheet appears as follows (amounts in thousands): A D 1 $ 1,164 Nm 826 2 Cash 3 Receivables 4 Inventories 5 Prepaid expenses 6 Total current assets Property, plant, and 7 equipment, net 8 Other assets 9 Total assets 10 B с Balance Sheet $ 253 Total current liabilities (a) Long-term debt 555 Other long-term liabilities (b) (c) Common shares Retained earnings 1,150 Total liabilities and $ 6,315 shareholders' equity 185 2,846 $ (0...
A skeleton of Heuristic Solution's balance sheet appears as follows (amounts in thousands): A D 1 $ 1,164 Nm 826 2 Cash 3 Receivables 4 Inventories 5 Prepaid expenses 6 Total current assets Property, plant, and 7 equipment, net 8 Other assets 9 Total assets 10 B с Balance Sheet $ 253 Total current liabilities (a) Long-term debt 555 Other long-term liabilities (b) (c) Common shares Retained earnings 1,150 Total liabilities and $ 6,315 shareholders' equity 185 2,846 $ (0...
Q1. (30 marks) A skeleton of Heuristic Solution's balance sheet appears as follows (amounts in thousands): A B с D 1 N $ 1,164 (e) 826 4 5 3 4 5 6 Cash Receivables Inventories Prepaid expenses Total current assets Property, plant, and equipment, net Other assets Total assets Balance Sheet $ 253 Total current liabilities (a) Long-term debt 555 Other long-term liabilities (b) (c) Common shares (d) Retained earnings 1,150 Total liabilities and $ 6,315 shareholders' equity LO 7...
Q1. (30 marks) A skeleton of Heuristic Solution's balance sheet appears as follows (amounts in thousands): A B с D 1 Balance Sheet N 3 4 Total current liabilities Long-term debt Other long-term liabilities $ 253 (a) 555 (b) (c) $ 1,164 (e) 826 3 4 5 6 Cash Receivables Inventories Prepaid expenses Total current assets Property, plant, and equipment, net Other assets Total assets 6 7 Common shares Retained earnings Total liabilities and shareholders' equity 185 2,846 (d) 1,150...
Current ratio 2.4 times Profit margin 10% Sales = $1,250m ROE = 25% Long-term debt to Long-term debt and equity 60% Use the above information to complete the balance sheet below. (Enter your answers in millions.) 260 million $ Current assets million Current liabilities million Long-term debt Stockholders' equity million Total liabilities and equity million Fixed assets million million Total assets
1. Explain why the costs of debt and equity are expected to increase as leverage increase? (Note: We didn't cover this directly in class, but we talked about this indirectly. Hint: It has to do with risk) 2. If the Debt-to-Asset ratio is .46, what is the Debt-to-Equity ratio? 3. Suppose a farm business indicates an average cost of farm debt of 12%, a rate-of-return on farm assets of 15%, and a debt-to-equity ratio of 1.0. What is the firm's...
please show all work Problem #3 (P/E and EPS): Tom's management team is very concerned about its company's price earnings ratio and carings per share. 1. Calculate the earnings per share and the P/E ratio for Tom's. 2. Assume that Whole Food's EPS is $2.25 per share and the P/E ratio is 10x. Compare Tom's ratios to Whole Food's. What conclusions can you draw? Income Statement (Millions of $) Balance Sheet (Millions of $) Assets Cash and securities Accounts receivable...
A. Required: 1. Please calculate the following ratios and amounts: a) working capital, b) current ratio, c) acid-test ratio, d) cash to current liabilities ratio, e) days’ sales in receivables (based on ending accounts receivables), f) days’ sales in inventory (based on cost of goods and ending inventory), g) operating cycle, h) total debt to equity ratio and i) times interest earned. For your calculations, assume that a year amounts for 360 days The balance sheet and the income statement...
Compute the (1) current ratio and the (2) quick ratio for Nikey, Inc. using the following excerpt from the balance sheet reported in a recent financial statement of Nikey, Inc. At May 31 (in millions) 2020 Current assets Cash and equivalents $6,934 Short-term investments 3,730 Accounts receivable, net 6,044 Inventories 7,807 Deferred income taxes 700 Prepaid expenses and other current assets 3,542 Total current assets $28,757 Current liabilities Current portion of long-term debt $182 Notes payable 126 Accounts payable 3,623...