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As part of your analysis, you are required to investigate DEVCON Industries' cash flows and selected ratios. Required: Using the financial statement provided on page 1: (a) Compute the following ratios for DEVCON Industries for 2018 and 2019: WAF* *** iv. Book Value Per Share v. Market-to-Book Ratio

As part of your analysis, you are required to investigate DEVCON Industries' cash flows and selected ratios. Required: Using the financial statement provided on page 1: (a) Compute the following ratios for DEVCON Industries for 2018 and 2019: WAF* *** iv. Book Value Per Share v. Market-to-Book Ratio

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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As part of your analysis, you are required to investigate DEVCON Industries' cash flows and selected ratios. Required: Using the financial statement provided on page 1: (a) Compute the following ratios for DEVCON Industries for 2018 and 2019: iv. Book Value Per Share v. Market-to-Book Ratio
Transcribed Image Text:As part of your analysis, you are required to investigate DEVCON Industries' cash flows and selected ratios. Required: Using the financial statement provided on page 1: (a) Compute the following ratios for DEVCON Industries for 2018 and 2019: iv. Book Value Per Share v. Market-to-Book Ratio
DEVCON INDUSTRIES LIMITED Income Statement For the years ended Dec. 31, 2018 and 2019 2018 2019 so00's s000's Sales 900000 1125000 Cost of Goods Sold 300000 306600 Gross Profit 600000 818400 Selling and Administrative Expenses 150000 156000 Depreciation Expense 54000 57000 Advertising Expenses 18000 21000 Earnings Before Interest and Taxes 378000 584400 Interest Expense 3000 3000 Taxable Income 375000 581400 Taxation (35%) 131250 203490 Net Income 243750 377910 Dividends (40%) 97500 151164 Addition to Retained Earnings 146250 226746 Additional Information Share Price 21 27.3 Ordinary Shares Outstanding 120000000 144000000 DEVCON INDUSTRIES LIMITED Statement of Financial Position As at Dec. 31, 2018 and 2019 ASSETS 2018 2019 LIABILITIES & EQUITY 2018 2019 Current Assets s00's s000's Current Liabilities so00's So00's Inventories 264000 276000 Accounts Payables Notes Payables 138000 114000 Accounts Receivables 294000 330000 150900 132654 Cash and Equivalents 210900 270000 288900 246654 768900 876000 Non-current Liabilities 120000 90000 Total Liabilities 408900 336654 Net Fixed Assets 630600 690000 Equity Common Stock 264000 276000 Retained Earnings 726600 953346 Total Equity 990600 1229346 Total Assets 1399500 1566000 Total Liabilities & Equity 1399500 1566000
Transcribed Image Text:DEVCON INDUSTRIES LIMITED Income Statement For the years ended Dec. 31, 2018 and 2019 2018 2019 so00's s000's Sales 900000 1125000 Cost of Goods Sold 300000 306600 Gross Profit 600000 818400 Selling and Administrative Expenses 150000 156000 Depreciation Expense 54000 57000 Advertising Expenses 18000 21000 Earnings Before Interest and Taxes 378000 584400 Interest Expense 3000 3000 Taxable Income 375000 581400 Taxation (35%) 131250 203490 Net Income 243750 377910 Dividends (40%) 97500 151164 Addition to Retained Earnings 146250 226746 Additional Information Share Price 21 27.3 Ordinary Shares Outstanding 120000000 144000000 DEVCON INDUSTRIES LIMITED Statement of Financial Position As at Dec. 31, 2018 and 2019 ASSETS 2018 2019 LIABILITIES & EQUITY 2018 2019 Current Assets s00's s000's Current Liabilities so00's So00's Inventories 264000 276000 Accounts Payables Notes Payables 138000 114000 Accounts Receivables 294000 330000 150900 132654 Cash and Equivalents 210900 270000 288900 246654 768900 876000 Non-current Liabilities 120000 90000 Total Liabilities 408900 336654 Net Fixed Assets 630600 690000 Equity Common Stock 264000 276000 Retained Earnings 726600 953346 Total Equity 990600 1229346 Total Assets 1399500 1566000 Total Liabilities & Equity 1399500 1566000
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