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
jeff jeffy answered 1 year agoRelated 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: $ 169,000 Investment...
You are given the following information for Smashville,
Inc.
Cost of goods sold:
$
169,000
Investment income:
$
1,300
Net sales:
$
282,000
Operating expense:
$
44,000
Interest expense:
$
7,400
Dividends:
$
5,000
Tax rate:
30
%
Current liabilities:
$
22,000
Cash:
$
21,000
Long-term debt:
$
92,000
Other assets:
$
37,000
Fixed assets:
$
120,000
Other liabilities:
$
6,000
Investments:
$
33,000
Operating assets:
$
64,000
During the year, Smashville, Inc., had 20,000 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...
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