Question

calculate Ballyhoo’s Book Value per Share and Net Working Capital.  

Assets                                                             Liabilities and Equity_____________

Cash              __$1,200___                     Accounts payable     $420

Accounts receivable     960                     Notes payable            580

Inventories                   640                     Accruals          ___$750__

      Total curr. assets $2,800                        Total current liabs.                               $1,750

Gross plant and equip. __$4,050___        Long-term bonds                        __$930___

      Less: accum depr. 1,650                         Total debt        $2,680

Net plant and equip. __$2,400___           Preferred stock ___$90__

                                                              Common stock (100 shares)                        260

                                                              Retained earnings                      __$2,170___

                                                                   Total Common Equity                               $2,430

                                                                   Total Equity      $2,520

Total Assets            $5,200                     Total liabs & equity          _$5,200___

2. Using the information from above, if the fiscal year-end 2016 amounts for Accounts Receivable and Inventories were $895 and $650 respectively, and Accounts Payable and Accruals were $435 and $740 respectively, what was Ballyhoo’s cash from operating activities for 2017 assuming that net income and depreciation charges were $375 and $47 respectively? (5 pts.)

Answer 1

Ques 1
Book value per share
Total Equity	2520
Less:Preferred stock	90
total common common stockholders equity(a)	2430
No. of shares (b)	100
BVPS (a/b)	24.3
Net working capital
Current Assets (a)	2800
Current liabilities (b)	1750
NWC (a-b)	1050
Ques 2
Net income		375
Adjustments to reconcile net income to
net cash provided by operating activities
Depreciation expense	47
Increase in Accounts receivable (960-895)	-65
Decrease in inventory (650-640)	10
Decrease in Accounts payable (420-435)	-15
Increase in accruals (750-740)	10
Increase in Notes payable	580	567
total cash flow from operating activities		942