Question
In: Finance
Amounts are in thousands of dollars (except number of shares and price per share): Kiwi Fruit...
Amounts are in thousands of dollars (except number of shares and price per share):
| Kiwi Fruit Company Balance Sheet | ||
| Cash and equivalents | $ | 580 |
| Operating assets | 680 | |
| Property, plant, and equipment | 2,700 | |
| Other assets | 125 | |
| Total assets | $ | 4,085 |
| Current liabilities | $ | 920 |
| Long-term debt | 1,275 | |
| Other liabilities | 135 | |
| Total liabilities | $ | 2,330 |
| Paid in capital | $ | 355 |
| Retained earnings | 1,400 | |
| Total equity | $ | 1,755 |
| Total liabilities and equity | $ | 4,085 |
| Kiwi Fruit Company Income Statement | |||
| Net sales | $ | 9,500 | |
| Cost of goods sold | (7,500 | ) | |
| Gross profit | $ | 2,000 | |
| Operating expense | (800 | ) | |
| Operating income | $ | 1,200 | |
| Other income | 120 | ||
| Net interest expense | (200 | ) | |
| Pretax income | $ | 1,120 | |
| Income tax | (210 | ) | |
| Net income | $ | 910 | |
| Earnings per share | $ | 2.00 | |
| Shares outstanding | 455,000 | ||
| Recent price | $ | 27.00 | |
| Kiwi Fruit Company Cash Flow Statement | |||
| Net income | $ | 910 | |
| Depreciation and amortization | 225 | ||
| Increase in operating assets | (100 | ) | |
| Decrease in current liabilities | (126 | ) | |
| Operating cash flow | $ | 909 | |
| Net (purchase) sale of property | $ | 160 | |
| Increase in other assets | (83 | ) | |
| Investing cash flow | $ | 77 | |
| Net (redemption) issuance of LTD | $ | (184 | ) |
| Dividends paid | (164 | ) | |
| Financing cash flow | $ | (348 | ) |
| Net cash increase | $ | 638 | |
Calculate the price-book, price-earnings, and price-cash flow ratios for Kiwi Fruit
Solutions
Expert Solution
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Answer:
Answer a.
Book Value per share = Total Equity / Number of shares
outstanding
Book Value per share = $1,755,000 / 455,000
Book Value per share = $3.86
Price-book Ratio = Recent Price / Book Value per share
Price-book Ratio = $27.00 / $3.86
Price-book Ratio = 7.00
Answer b.
Earnings per share = Net Income / Number of shares
outstanding
Earnings per share = $910,000 / 455,000
Earnings per share = $2.00
Price-earnings Ratio = Recent Price / EPS
Price-earnings Ratio = $27.00 / $2.00
Price-earnings Ratio = 13.50
Answer c.
Cash flow per share = (Net Income + Depreciation and
Amortization) / Number of shares outstanding
Cash flow per share = ($910,000 + $225,000) / 455,000
Cash flow per share = $2.4945
Price-cash flow Ratio = Recent Price / Cash flow per share
Price-cash flow Ratio = $27.00 / $2.4945
Price-cash flow Ratio = 10.82
jeff jeffy answered 3 years agoRelated Solutions
Amounts are in thousands of dollars (except number of shares and price per share): Kiwi Fruit...
Amounts are in thousands of dollars (except number of shares and
price per share): Kiwi Fruit Company Balance Sheet Cash and
equivalents $ 460 Operating assets 700 Property, plant, and
equipment 2,900 Other assets 135 Total assets $ 4,195 Current
liabilities $ 920 Long-term debt 1,345 Other liabilities 145 Total
liabilities $ 2,410 Paid in capital $ 365 Retained earnings 1,420
Total equity $ 1,785 Total liabilities and equity $ 4,195 Kiwi
Fruit Company Income Statement Net sales $ 7,900...
Amounts are in thousands of dollars (except number of shares and price per share: Kiwi Fruit...
Amounts are in thousands of dollars (except number of shares
and price per share:
Kiwi Fruit Company Balance Sheet
Cash and equivalents
$570
Operating assets
650
Property, plant, and equipment
2,700
Other assets
110
Total assets
$4,030
Current liabilities
920
Long-term debt
1,280
Other liabilities
120
Total liabilities
$2,320
Paid in capital
$340
Retained earnings
1,370
Total equity
$1,710
Total liabilities and equity
$4,030
Kiwi Fruit Company Income Statement
Net sales
7,800
Cost of goods sold
-5,900
Gross profit
1,900...
Amounts are in thousands of dollars (except number of shares and price per share): Kiwi...
Amounts are in thousands of
dollars (except number of shares and price per share):
Kiwi Fruit Company Balance Sheet
Cash and
equivalents
$
570
Operating
assets
650
Property, plant, and
equipment
2,700
Other assets
110
Total assets
$
4,030
Current
liabilities
$
920
Long-term debt
1,280
Other
liabilities
120
Total
liabilities
$
2,320
Paid in capital
$
340
Retained
earnings
1,370
Total equity
$
1,710
Total liabilities
and equity
$
4,030
Kiwi Fruit Company Income Statement
Net sales...
Amounts are in thousands of dollars (except number of shares and price per share): Kiwi...
Amounts are in thousands of dollars (except number of shares
and price per share):
Kiwi Fruit Company Balance Sheet
Cash and equivalents
$
570
Operating assets
650
Property, plant, and equipment
2,700
Other assets
110
Total assets
$
4,030
Current liabilities
$
920
Long-term debt
1,280
Other liabilities
120
Total liabilities
$
2,320
Paid in capital
$
340
Retained earnings
1,370
Total equity
$
1,710
Total liabilities and equity
$
4,030
Kiwi Fruit Company Income Statement
Net sales...
2013 (Thousands of Dollars, Except Earnings per Share) Sales revenue $978,000 Cost of goods sold 648,000...
2013
(Thousands of Dollars,
Except Earnings per Share)
Sales revenue
$978,000
Cost of goods sold
648,000
Net income
60,600
Dividends
16,800
Earnings per share
4.04
Packard Plastics, inc.
Balance Sheets
(Thousands of Dollars)
Dec. 31, 2013
Dec. 31, 2012
Assets
Cash
$4,920
$2,700
Accounts receivable (net)
80,280
60,900
Inventory
177,600
140,000
Total Current Assets
219,000
203,600
Plant assets (net)
215,000
194,000
Other assets
5,300
3,900
Total Assets
$439,300
$401,500
Liabilities and Stockholders' Equity
Notes payable-banks
$37,200
$25,000
Accounts payable
33,120...
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Let x be per capita income in thousands of dollars. Let y be the number of...
Let x be per capita income in thousands of dollars. Let
y be the number of medical doctors per 10,000 residents.
Six small cities in Oregon gave the following information about
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x
9.0
9.4
10.2
8.0
8.3
8.7
y
9.5
18.0
21.2
10.2
11.4
13.1
Complete parts (a) through (e), given Σx = 53.6,
Σy = 83.4, Σx2 = 481.98,
Σy2 = 1269.3, Σxy = 761.13, and
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(b) Verify the given sums Σx, Σy,...
Let x be per capita income in thousands of dollars. Let y be the number of...
Let x be per capita income in thousands of dollars. Let y be the
number of medical doctors per 10,000 residents. Six small cities in
Oregon gave the following information about x and y. x 8.4 9.1 9.8
8.0 8.3 8.7 y 9.8 18.4 21.2 10.2 11.4 13.1 Complete parts (a)
through (e), given Σx = 52.3, Σy = 84.1, Σx2 = 457.99, Σy2 =
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Let x be per capita income in thousands of dollars. Let y be the number of...
Let x be per capita income in thousands of dollars. Let y be the
number of medical doctors per 10,000 residents. Six small cities in
Oregon gave the following information about x and y. x 8.3 9.3 10.2
8.0 8.3 8.7 y 9.9 18.1 20.6 10.2 11.4 13.1 Complete parts (a)
through (e), given Σx = 52.8, Σy = 83.3, Σx2 = 468, Σy2 = 1255.59,
Σxy = 750.81, and r ≈ 0.974. (a) Draw a scatter diagram displaying
the...
Apple Inc. CONSOLIDATED BALANCE SHEETS (In millions, except number of shares which are reflected in thousands...
Apple Inc. CONSOLIDATED BALANCE SHEETS (In millions,
except number of shares which are reflected in thousands and par
value)
September 30, 2017 (LEFT) September 24, 2016
(RIGHT)
ASSETS Current assets Cash and cash
equivalents
$ 20,289 $ 20,484 Short-term marketable securities
53,892 46,671
Accounts receivable, less allowances of $58 and $53,
respectively 17,874 15,754
Inventories 4,855 2,132
Vendor non-trade receivables 17,799 13,545
Other current assets 13,936 8,283
Total current assets 128,645 106,869
Long-term marketable securities 194,714
170,430
Property, plant and...
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