You are given the following information for Smashville, Inc. Cost of goods sold: $ 184,000 Investment...
You are given the following information for Smashville, Inc.
| Cost of goods sold: | $ | 184,000 | |
| Investment income: | $ | 1,600 | |
| Net sales: | $ | 387,000 | |
| Operating expense: | $ | 88,000 | |
| Interest expense: | $ | 7,400 | |
| Dividends: | $ | 6,000 | |
| Tax rate: | 30 | % | |
| Current liabilities: | $ | 12,000 |
| Cash: | $ | 21,000 |
| Long-term debt: | $ | 32,000 |
| Other assets: | $ | 40,000 |
| Fixed assets: | $ | 125,000 |
| Other liabilities: | $ | 5,000 |
| Investments: | $ | 36,000 |
| Operating assets: | $ | 64,000 |
During the year, Smashville, Inc., had 17,000 shares of stock outstanding and depreciation expense of $19,000. At the end of the year, Smashville stock sold for $42 per share. Calculate the price-book ratio, price-earnings ratio, and the price-cash flow ratio. (Do not round intermediate calculations. Round your answers to 2 decimal places.)
Homework Answers
Price Book Ratio = Market price of share / Book value per share
Book value per share = Net worth of company / Shares outstanding
Net worth = (21000 + 40000 + 125000 + 36000 + 64000 - 12000 - 32000 - 5000) = 237000
Book value per share = 237000 / 17000 = 13.94
Price to Boom ratio = 42 / 13.94 = 3.01
Price earning ratio = Market price / Earning per share
Earnings before depreciation and taxes = (387000 + 1600 - 184000 - 88000 - 7400) = 109200
Earnings after tax = (109200 - 19000) * (1 - 0.3) = 63140
Earnings per share = 63140 / 17000 = 3.71
Price earnings ratio = 42 / 3.71 = 11.32
Price to cash flow ratio = Price / Cash flow per share
Cash flow = Earnings after tax + Depreciation = 63140 + 19000 = 82140
Cash flow per share = 82140 / 4.83
Price to cash flow = 42 / 4.83 = 8.70
Add Answer to:
You are given the following information for Smashville, Inc.
Cost of goods sold:
$
184,000
Investment...
You are given the following information for Smashville, Inc. Cost of goods sold: Investment income: Net...
You are given the following information for Smashville, Inc. Cost of goods sold: Investment income: Net sales: Operating expense: Interest expense: Dividends: Tax rate: $164,000 $ 1,200 $ 318,000 $ 71,000 $ 7,400 $ 3,200 35% Current liabilities: Cash: Long-term debt: Other assets: Fixed assets: Other liabilities: Investments: Operating assets: $ 42,000 $ 21,000 $ 102,000 $ 36,000 $ 150,000 $ 11,000 $ 32,000 $ 64,000 During the year, Smashville, Inc., had 17,000 shares of stock outstanding and depreciation expense...
Cost of goods sold: Investment income: $234,000 $ 2,680 $ 397,000 S 92,000 $ 7,400 $ 12,000 4% Net sales: Operating...
Cost of goods sold: Investment income: $234,000 $ 2,680 $ 397,000 S 92,000 $ 7,400 $ 12,000 4% Net sales: Operating expense: Interest expense: Dividends: Тах гate: Book ronces Current liabilities: Cash: $ 20,000 $ 21,000 $ 22,000 $ 42,000 $131,000 s 5,000 $ 46,000 $ 47,000 Long-term debt: Other assets: Fixed assets: Other liabilities Investments Operating assets: During the year, Smashville, Inc., had 17,000 sheares of stock outstanding and depreciation expense of $15,000. Calculate the book value per share,...
Given the following information for Smashville, Inc., construct a balance sheet: Current liabilities: Cash: Long-term debt:...
Given the following information for Smashville, Inc., construct a balance sheet: Current liabilities: Cash: Long-term debt: Other assets: Fixed assets: Other liabilities: Investments: Operating assets: $ 54,000 $ 21,000 $130,000 $ 38,000 $169,000 $ 24,000 $ 50,000 $ 41,000 cash Fixed assets Other assets Operating assets Total assets 0 Total liabilities and equity
Given the following information for Smashville, Inc., construct an income statement for the year: Cost of...
Given the following information for Smashville, Inc., construct an income statement for the year: Cost of goods sold: Investment income: Net sales: Operating expense: Interest expense: Dividends: Tax rate: $ 170,000 $ 3,200 $ 338,000 $ 49,000 $ 7,400 $ 14,000 40% What are retained earnings for the year? (Input all amounts as positive values.)
Given the following information for Smashville, Inc., construct an income statement for the year: Cost of...
Given the following information for Smashville, Inc., construct an income statement for the year: Cost of goods sold: Investment income: Net sales: Operating expense: Interest expense: Dividends: Tax rate: $169,000 $ 1,300 $282,000 $ 44,000 $ 7,400 $ 5,000 303 What are retained earnings for the year? (Input all amounts as positive values.) COS Retained earings
CRUZ, INC. Income Statement For Year Ended December 31, 2017 Sales $488,000 Cost of goods sold...
CRUZ, INC. Income Statement For Year Ended December 31, 2017 Sales $488,000 Cost of goods sold 314,000 Gross profit 174,000 Operating expenses Depreciation expense $37,600 Other expenses 89,100 126,700 Income before taxes 47,300 Income taxes expense 17,300 Net income $ 30,000 CRUZ, INC. Comparative Balance Sheets December 31, 2017 | 2017 2016 _ Assets Cash $ 94,800 $ 24,000 Accounts receivable, net 41,000 51,000 Inventory 85,800 95,800 Prepaid expenses 5,400 4,200 Total current assets 227,000 175,000 Furniture 109,000 119,000 Accum....
Following are comparative balance sheets for Millco Inc. at January 31 and February 28, 2020: MILLCO...
Following are comparative balance sheets for Millco Inc. at January 31 and February 28, 2020: MILLCO INC. Balance Sheets February 28 and January 31, 2020 February 28 January 31 $ 42,000 64,000 81,000 $187.000 $ 37,000 53,000 94,000 $184,000 Assets Cash Accounts receivable Merchandise inventory Total current assets Plant and equipment: Production equipment Less: Accumulated depreciation Total assets Liabilities Accounts payable Short-term debt Other accrued liabilities Total current liabilities Long-term debt Total liabilities Stockholdanell Fruit 166,000 (24,000) $329,000 152,000 (21,000)...
The comparative balance sheet for Majestic Travel Services, Inc., for December 31, 2017 and 2016, is...
The comparative balance sheet for Majestic Travel Services, Inc., for December 31, 2017 and 2016, is as follows: (Click the icon to view the comparative balance sheet.) The following information is taken from the records of Majestic Travel Services, Inc. (Click the icon to view the transaction data.) Prepare the statement of cash flows (indirect method) for Majestic Travel Services, Inc., for 2017 Increase in wages payable Increase in interest payable 15,000 1,000 2,000 (10,400) Increase in income taxes payable...
1394 chapter 24 Learning Objective 5 P24-29A Using ROI and RI to evaluate investment center Consider...
1394 chapter 24 Learning Objective 5 P24-29A Using ROI and RI to evaluate investment center Consider the following condensed financial statements of Forever Free, Inc. The company's target rate of return is 40%. 3. Asset turnover ratio 7.00 2017 FOREVER FREE, INC. Income Statement For the Year Ended December 31, 2018 Net Sales Revenue $ 3,500,000 Cost of Goods Sold 2.200.000 Gross Profit 1,300,000 Operating Expenses 950.000 Operating Income 350,000 Other Income and (Expenses): Interest Expense (27,000) Income Before Income...
*. Selected data for Stick's Design are given as of December 31, 20x7 and 20x8. 20x8...
*. Selected data for Stick's Design are given as of December 31, 20x7 and 20x8. 20x8 20x7 Net Sales $35,000 $30,000 Cost of Goods Sold 20,000 18,000 3,000 2,800 900 Accounts Receivable 1,500 2,000 3,000 3,600 4,500 5,000 Net Income 1,000 Inventory Current Liabilities Required: Compute the following Current ratio for 20x8 Acid-test ratio for 20x8 Accounts receivable turnover for 20x8 Average collection period for 20x8 Inventory turnover for 20x8 CONSTANTINE CAVAMANLIS INC BALANCE SHEETS Assets Dec. 31, 2004 Jn...
You are given the following information for Smashville, Inc. Cost of goods sold: Investment income: Net sales: Operating expense: Interest expense: Dividends: Tax rate: $164,000 $ 1,200 $ 318,000 $ 71,000 $ 7,400 $ 3,200 35% Current liabilities: Cash: Long-term debt: Other assets: Fixed assets: Other liabilities: Investments: Operating assets: $ 42,000 $ 21,000 $ 102,000 $ 36,000 $ 150,000 $ 11,000 $ 32,000 $ 64,000 During the year, Smashville, Inc., had 17,000 shares of stock outstanding and depreciation expense...
Cost of goods sold: Investment income: $234,000 $ 2,680 $ 397,000 S 92,000 $ 7,400 $ 12,000 4% Net sales: Operating expense: Interest expense: Dividends: Тах гate: Book ronces Current liabilities: Cash: $ 20,000 $ 21,000 $ 22,000 $ 42,000 $131,000 s 5,000 $ 46,000 $ 47,000 Long-term debt: Other assets: Fixed assets: Other liabilities Investments Operating assets: During the year, Smashville, Inc., had 17,000 sheares of stock outstanding and depreciation expense of $15,000. Calculate the book value per share,...
Given the following information for Smashville, Inc., construct a balance sheet: Current liabilities: Cash: Long-term debt: Other assets: Fixed assets: Other liabilities: Investments: Operating assets: $ 54,000 $ 21,000 $130,000 $ 38,000 $169,000 $ 24,000 $ 50,000 $ 41,000 cash Fixed assets Other assets Operating assets Total assets 0 Total liabilities and equity
Given the following information for Smashville, Inc., construct an income statement for the year: Cost of goods sold: Investment income: Net sales: Operating expense: Interest expense: Dividends: Tax rate: $ 170,000 $ 3,200 $ 338,000 $ 49,000 $ 7,400 $ 14,000 40% What are retained earnings for the year? (Input all amounts as positive values.)
Given the following information for Smashville, Inc., construct an income statement for the year: Cost of goods sold: Investment income: Net sales: Operating expense: Interest expense: Dividends: Tax rate: $169,000 $ 1,300 $282,000 $ 44,000 $ 7,400 $ 5,000 303 What are retained earnings for the year? (Input all amounts as positive values.) COS Retained earings
CRUZ, INC. Income Statement For Year Ended December 31, 2017 Sales $488,000 Cost of goods sold 314,000 Gross profit 174,000 Operating expenses Depreciation expense $37,600 Other expenses 89,100 126,700 Income before taxes 47,300 Income taxes expense 17,300 Net income $ 30,000 CRUZ, INC. Comparative Balance Sheets December 31, 2017 | 2017 2016 _ Assets Cash $ 94,800 $ 24,000 Accounts receivable, net 41,000 51,000 Inventory 85,800 95,800 Prepaid expenses 5,400 4,200 Total current assets 227,000 175,000 Furniture 109,000 119,000 Accum....
Following are comparative balance sheets for Millco Inc. at January 31 and February 28, 2020: MILLCO INC. Balance Sheets February 28 and January 31, 2020 February 28 January 31 $ 42,000 64,000 81,000 $187.000 $ 37,000 53,000 94,000 $184,000 Assets Cash Accounts receivable Merchandise inventory Total current assets Plant and equipment: Production equipment Less: Accumulated depreciation Total assets Liabilities Accounts payable Short-term debt Other accrued liabilities Total current liabilities Long-term debt Total liabilities Stockholdanell Fruit 166,000 (24,000) $329,000 152,000 (21,000)...
The comparative balance sheet for Majestic Travel Services, Inc., for December 31, 2017 and 2016, is as follows: (Click the icon to view the comparative balance sheet.) The following information is taken from the records of Majestic Travel Services, Inc. (Click the icon to view the transaction data.) Prepare the statement of cash flows (indirect method) for Majestic Travel Services, Inc., for 2017 Increase in wages payable Increase in interest payable 15,000 1,000 2,000 (10,400) Increase in income taxes payable...
1394 chapter 24 Learning Objective 5 P24-29A Using ROI and RI to evaluate investment center Consider the following condensed financial statements of Forever Free, Inc. The company's target rate of return is 40%. 3. Asset turnover ratio 7.00 2017 FOREVER FREE, INC. Income Statement For the Year Ended December 31, 2018 Net Sales Revenue $ 3,500,000 Cost of Goods Sold 2.200.000 Gross Profit 1,300,000 Operating Expenses 950.000 Operating Income 350,000 Other Income and (Expenses): Interest Expense (27,000) Income Before Income...
*. Selected data for Stick's Design are given as of December 31, 20x7 and 20x8. 20x8 20x7 Net Sales $35,000 $30,000 Cost of Goods Sold 20,000 18,000 3,000 2,800 900 Accounts Receivable 1,500 2,000 3,000 3,600 4,500 5,000 Net Income 1,000 Inventory Current Liabilities Required: Compute the following Current ratio for 20x8 Acid-test ratio for 20x8 Accounts receivable turnover for 20x8 Average collection period for 20x8 Inventory turnover for 20x8 CONSTANTINE CAVAMANLIS INC BALANCE SHEETS Assets Dec. 31, 2004 Jn...
Most questions answered within 3 hours.
-
A coach uses a new technique to train gymnasts. Seven
gymnasts were randomly selected and their...
asked 10 minutes ago -
While rotating the tires on your car you notice a rock [mass =
0.1 Kg] stuck...
asked 2 hours ago -
Using MARS simulator, write MIPS programs according to
the following scenarios: Receive a positive integer number...
asked 4 hours ago -
An object in front of a concave mirror has a real image that is
11.5 cm...
asked 4 hours ago -
Consider the reaction, C3 H8 + O2 --> CO2 + H2O. How many
moles of O2...
asked 5 hours ago -
You and your opponent both roll a fair die. If you both roll the
same number,...
asked 6 hours ago -
In a study of the accuracy of fast food drive-through orders,
Restaurant A had 257 accurate...
asked 6 hours ago -
Identify and describe in detail the four categories of
institutions that could be included in a...
asked 6 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 6 hours ago -
What is an example of a limitation in implementing a new
ERP system and how it...
asked 6 hours ago -
In a section of 9.7cm of an artery with a radius of 2.6mm there
is a...
asked 6 hours ago -
the two carboxylic acid groups of aspartic acid have different
acidities with pKa values of 2.1...
asked 6 hours ago