Question

Cash and equivalents	$620
Operating assets	800
Property, plant, and equipment	3,200
Other assets	185
Total assets	$4,805
Current liabilities	$1,040
Long-term debt	1,635
Other liabilities	195
Total liabilities	$2,870
Paid in capital	$415
Retained earnings	1,520
Total equity	$1,935
Total liabilities and equity	$4,805

Kiwi Fruit Company Income Statement
Net sales	$8,100
Cost of goods sold	−6,700
Gross profit	$1,400
Operating expense	−400
Operating income	$1,000
Other income	180
Net interest expense	−200
Pretax income	$980
Income tax	−270
Net income	$710
Earnings per share	$2.00
Shares outstanding	355,000
Recent price	$33.00

Kiwi Fruit Company Cash Flow Statement
Net income	$710
Depreciation and amortization	212
Increase in operating assets	−120
Decrease in current liabilities	−128
Operating cash flow	$674
Net (purchase) sale of property	$220
Increase in other assets	−77
Investing cash flow	$143
Net (redemption) issuance of LTD	−$203
Dividends paid	−190
Financing cash flow	−$393
Net cash increase	$424

Calculate the price-book, price-earnings, and price-cash flow ratios for Kiwi Fruit. (Do not round intermediate calculations. Round your answers to 2 decimal places.)

Answer 1

Price to book per share =Share Price/(Book Value/Share) =33/((415000+1520000+1935000)/355000) =3.03
Price to Earnings ratio =33/2 =16.50
Price to cash flow =33/(424000/355000) =27.63