In: Finance
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.)
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