Question
In: Accounting
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 and depreciation expense of $17,000. At the end of the year, Smashville stock sold for $65 per share. Calculate the price-book ratio, price-earnings ratio, and the price-cash flow ratio.
Solutions
Expert Solution
Price-book ratio = Market Price per share / Book value per share = $65 / $11.94 = 5.44
Market price per share = $ 65 (Given in question)
Book value per share = (Total assets - Total liabilities) / No. of shares outstanding = $203,000 / 17,000 = $11.94
Price-earning ratio = Market Price per share / Earnings per share = $65 / $1.84 = 35.33
Market price per share = $ 65 (Given in question)
Earnings per share = Profit available to common share holders / No. of shares outstanding = $31,290 / 17,000 = $1.84
Price-cash flow ratio = Market Price per share / Operating cashflow per share = $65 / $3.09 = 21.04
Market price per share = $ 65 (Given in question)
Operating cash flow per share = Operating cash flow per share holders / No. of shares outstanding = $52,590 / 17,000 = $3.09
ekkarill92 answered 2 years agoRelated Solutions
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: $ 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: $ 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: $ 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...
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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