Question

In: Finance

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 25,000 shares of stock outstanding and depreciation expense of $15,000. Calculate the book value per share, earnings per share, and cash flow per share. (Do not round intermediate calculations. Round your answers to 2 decimal places.)

Solutions

Expert Solution

Book Value Per Share

Total Assets = Cash + Other Assets + Fixed Assets + Investments + Operating Assets

          = $ (21,000 + 40,000 + 125,000 + 36,000 + 64,000)

          = $ 286,000

Total Liabilities = Current Liabilities + Long term debt + other liabilities

                   = $ (12,000 + 32,000 + 5,000)

                   = $ 49,000

Book Value = Total Assets – Total Liabilities

          = $ 286,000 - $49,000 = $237,000

Book Value Per Share = Book Value / Outstanding Share

                             = $237,000 / 25,000

                             = $9.48

Earnings Per Share

Particulars

Amount ( in $)

Net Sales

387,000

Investment Income

1,600

Cost of Goods Sold

(184,000)

Operating Expenses

(88,000)

EBIT

116,600

Interest Expenses

(7,400)

EBT

109,200

Tax (30%)

(32,760)

EAT

76,440

Earning Per Share = EAT / Outstanding Share

                   = $76,440 / 25,000

                   = $3.06

Cash Flow Per Share

Operating Cash Flow = Net Income + Depreciation

                   = $76,440 + $15,000 = $91,440

Cash Flow Per Share = Operating Cash Flow / Outstanding Per Share

                             = $91,440 / 25,000

                             = 3.66


Related Solutions

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...
You are given the following information for Smashville, Inc. Cost of goods sold: $ 214,000 Investment...
You are given the following information for Smashville, Inc. Cost of goods sold: $ 214,000 Investment income: $ 2,200 Net sales: $ 328,000 Operating expense: $ 45,000 Interest expense: $ 7,400 Dividends: $ 8,000 Tax rate: 30 % Current liabilities: $ 16,000 Cash: $ 21,000 Long-term debt: $ 26,000 Other assets: $ 38,000 Fixed assets: $ 156,000 Other liabilities: $ 5,000 Investments: $ 42,000 Operating assets: $ 35,000    During the year, Smashville, Inc., had 17,000 shares of stock outstanding...
You are given the following information for Smashville, Inc.   Cost of goods sold: $ 229,000 Investment...
You are given the following information for Smashville, Inc.   Cost of goods sold: $ 229,000 Investment income: $ 2,500 Net sales: $ 374,000 Operating expense: $ 82,000 Interest expense: $ 7,400 Dividends: $ 9,000 Tax rate: 30 % Current liabilities: $ 18,000 Cash: $ 21,000 Long-term debt: $ 23,000 Other assets: $ 41,000 Fixed assets: $ 166,000 Other liabilities: $ 5,000 Investments: $ 45,000 Operating assets: $ 37,000 During the year, Smashville, Inc., had 17,000 shares of stock outstanding and...
You are given the following information for Smashville, Inc. Cost of goods sold: $ 229,000 Investment...
You are given the following information for Smashville, Inc. Cost of goods sold: $ 229,000 Investment income: $ 2,500 Net sales: $ 374,000 Operating expense: $ 82,000 Interest expense: $ 7,400 Dividends: $ 9,000 Tax rate: 30 % Current liabilities: $ 18,000 Cash: $ 21,000 Long-term debt: $ 23,000 Other assets: $ 41,000 Fixed assets: $ 166,000 Other liabilities: $ 5,000 Investments: $ 45,000 Operating assets: $ 37,000    During the year, Smashville, Inc., had 17,000 shares of stock outstanding...
You are given the following information for Smashville, Inc. Cost of goods sold: $ 259,000 Investment...
You are given the following information for Smashville, Inc. Cost of goods sold: $ 259,000 Investment income: $ 3,100 Net sales: $ 402,000 Operating expense: $ 94,000 Interest expense: $ 7,400 Dividends: $ 11,000 Tax rate: 30 % Current liabilities: $ 20,000 Cash: $ 21,000 Long-term debt: $ 7,000 Other assets: $ 39,000 Fixed assets: $ 134,000 Other liabilities: $ 5,000 Investments: $ 15,000 Operating assets: $ 26,000    During the year, Smashville, Inc., had 17,000 shares of stock outstanding...
You are given the following information for Smashville, Inc. Cost of goods sold: $ 170,000 Investment...
You are given the following information for Smashville, Inc. Cost of goods sold: $ 170,000 Investment income: $ 3,200 Net sales: $ 308,000 Operating expense: $ 49,000 Interest expense: $ 7,400 Dividends: $ 14,000 Tax rate: 40 % Current liabilities: $ 24,000 Cash: $ 21,000 Long-term debt: $ 6,000 Other assets: $ 40,000 Fixed assets: $ 162,000 Other liabilities: $ 5,000 Investments: $ 16,000 Operating assets: $ 51,000    Calculate the gross margin, the operating margin, return on assets, and...
You are given the following information for Smashville, Inc. Cost of goods sold: $ 119,000 Investment...
You are given the following information for Smashville, Inc. Cost of goods sold: $ 119,000 Investment income: $ 2,300 Net sales: $ 232,000 Operating expense: $ 40,000 Interest expense: $ 7,400 Dividends: $ 11,000 Tax rate: 40 % Current liabilities: $ 18,000 Cash: $ 21,000 Long-term debt: $ 25,000 Other assets: $ 39,000 Fixed assets: $ 126,000 Other liabilities: $ 5,000 Investments: $ 43,000 Operating assets: $ 45,000    During the year, Smashville, Inc., had 17,000 shares of stock outstanding...
You are given the following information for Smashville, Inc.   Cost of goods sold: $ 175,000 Investment...
You are given the following information for Smashville, Inc.   Cost of goods sold: $ 175,000 Investment income: $ 2,800 Net sales: $ 237,000 Operating expense: $ 42,000 Interest expense: $ 7,400 Dividends: $ 10,000 Tax rate: 30 % Current liabilities: $ 18,000 Cash: $ 21,000 Long-term debt: $ 10,000 Other assets: $ 36,000 Fixed assets: $ 89,000 Other liabilities: $ 5,000 Investments: $ 12,000 Operating assets: $ 24,000 During the year, Smashville, Inc., had 17,000 shares of stock outstanding and...
You are given the following information for Smashville, Inc. Cost of goods sold: $224,000 Investment income:...
You are given the following information for Smashville, Inc. Cost of goods sold: $224,000 Investment income: $2,400 Net sales: $389,000 Operating expense: $90,000 Interest expense: $7,400 Dividends: $15,000 Tax rate: 21 % Current liabilities: $24,000 Cash: $21,000 Long-term debt: $24,000 Other assets: $40,000 Fixed assets: $136,000 Other liabilities: $5,000 Investments: $44,000 Operating assets: $37,000 During the year, Smashville, Inc., had 24,000 shares of stock outstanding and depreciation expense of $15,000. Calculate the book value per share, earnings per share, and...
You are given the following information for Smashville, Inc. Cost of goods sold: $175,000 Investment income:...
You are given the following information for Smashville, Inc. Cost of goods sold: $175,000 Investment income: $2,800 Net sales: $237,000 Operating expense: $42,000 Interest expense: $7,400 Dividends: $10,000 Tax rate: 21 % Current liabilities: $18,000 Cash: $21,000 Long-term debt: $10,000 Other assets: $36,000 Fixed assets: $89,000 Other liabilities: $5,000 Investments: $12,000 Operating assets: $24,000 During the year, Smashville, Inc., had 17,000 shares of stock outstanding and depreciation expense of $15,000. Calculate the book value per share, earnings per share, and...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT