Question

Q-3 (25 points) Balance Sheet. Consider the following partial balance sheet for ACF Inc. as of the fiscal year ended December 31, 2019: Assets Total Current Assets Total Long-term Assets 2019 2,824 12,917 Liabilities 2019 Total Current Liabilities 1,691 Total Long-term Liabilities 7,862 You are also given the following information: Cash Total Debt Stock price Outstanding shares 2019 1,050 3,000 $4 2,000 (a) What is the stockholders' equity for the fiscal year ended Dec 31, 2019? (b) What is the ACF Inc.'s market capitalization for the fiscal year ended Dec 31, 2019? (c) What is the ACF Inc.'s P/B ratio for the fiscal year ended Dec 31, 2019? (d) What is the ACF Inc.'s enterprise value for the fiscal year ended Dec 31, 2019? (e) Suppose in 2019, the corporation used $1,500 of its available cash to purchase a $500 equipment and to repay $1,000 of its short-term debt, what is the change to stockholders' equity and to the net working capital for the fiscal year ended Dec 31, 2019?

Answer 1

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A Stockholder's equity Total Assets Less Total liabilities Stockholder's equity 15741 9553 6188 B Market Capitalisation Current share price (Multiply) ($4* 2000 shares) Number of outstanding shares 8000 с P/B Ratio Devidel Stockholder's equity Outstanding share Book value per share 6188 2000 3.094 P/B Ratio Share price/Book value per share (4/3.094) 1.29 D 8000 Enterprice value Market capitalisation add Total debt less Cash 3000 1050 9950 E Shareholders equity after change Total current assets Total Long term Assets Total Assets (2824-1500) (12917+500) (A) 1324 13417 14741 (1691-1000) 691 Total current Liabilities Total Long term Liabilities Total liabilities 7862 8553 (B) Shareholders Equity (A-B) 6188 Not any change in shareholders Equity 1324 Working capital Total Curent assets less Total current liabilities Working capital 691 633