Problem 19-4 Per-Share Ratios (LO3, CFA6)You are given the following information for Smashville, Incorporated.Cost of goods sold:Investment income:Net sales:Operating expense:Interest expense:Dividends:Tax rate:Current liabilities:Cash:Long-term debt:$ 200,000$ 2,700$ 333,000$ 47,000$ 7,400$ 16,00021%$ 26,000$ 21,000$ 21,000Other assets:$ 43,000$ 159,000Other liabilities:$ 5,000Fixed assets:Investments:Operating assets:$ 47,000$ 39,000During the year, Smashville, Incorporated, had 20,000 shares of stock outstanding and depreciation expense of $15,000. Calculate thebook value per share, earnings per share, and cash flow per share.Note: Do not round intermediate calculations. Round your answers to 2 decimal places.Book value per shareEarnings per shareCash flow per share$12.85

Step 1: Compute the Book value of Equity (Total assets - Total liabilities) Assets Cash…

Answered: Problem 19-4 Per-Share Ratios (LO3,…

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

Problem 1PS

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Problem 16-17 (Static) Interpretation of Financial Ratios [LO16-2, LO16-3, LO16-6] Pecunious Products, Incorporated's financial results for the past three years are summarized below: Sales trend Current ratio Acid-test ratio Accounts receivable turnover Inventory turnover Dividend yield Dividend payout ratio Dividends paid per share* Year 3 128.0 2.5 9.4 6.5 7.1% 40% $1.50 Year 2 115.0 2.3 0.9 10.6 7.2 6.5% 50% $ 1.50 Year 1 100.0 2.2 1.1 12.5 8.0 5.8% 60% $ 1.50 *There have been no changes in common stock outstanding over the three-year period. Required: Review the results above and answer the following questions: 1. Is it becoming easier for the company to pay its bills as they come due? 2. Are customers paying their accounts at least as fast now as they were in Year 1? 3. Are the accounts receivable increasing, decreasing, or remaining constant? 4. Is inventory increasing, decreasing, or remaining constant? 5. Is the market price of the company's stock going up or down? 6. Is the…
National Semiconductor (NSM)Analog Devices Inc. (ADI)Texas Instruments (TXN) Revenue (billions) $1.64 $2.27 $11.32 Gross margin 64.41% 58.83% 46.80% Operating margin 25.35% 20.09% 17.67% Net Income 220.20M 349.78M 1.28B Earnings per share 0.924 1.225 0.978 Price-to-earnings ratio 15.56 20.48 21.31 The National Semiconductor Corporation (NSM) develops and manufactures semiconductors for electronic systems. The firm's products are used in a variety of applications, including LED lighting, high speed communication, renewable energy, and security and surveillance. The company's chief financial officer (CFO) has a report prepared annually that compares the firm's performance to several key competitors. The CFO has identified Analog Devices (ADI) and Texas Instruments (TXN) as key competitors. Selected information for all three companies is found here LOADING... for the twelve-month period ended June 2009. Based on this information, which of the two companies appears to be…
Debtors collection period Current ratioGearing ratioInterest cover
ces The most recent financial statements for Bradley, Inc., are shown here (assuming no income taxes): Sales Costs Income Statement Net income Assets Total EFN $9,200 -5,520 $3,680 Balance Sheet Debt Equity $26,680 $26,680 Total $10,800 15,880 $26,680 Check my Assets and costs are proportional to sales. Debt and equity are not. No dividends are paid. Next year's sales are projected to be $10,212. What is the external financing needed? (A negative value should be indicated by a minus sign. Do not round intermediate calculations. Round your answer to the nearest whole number.)
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Problem 19-4 Per-Share Ratios (LO3, CFA6) You are given the following information for Smashville, Inc. Cost of goods sold: $249,000 Investment income: $2,900 Net sales: $394,000 Operating expense: $92,000 Interest expense: $7,400 Dividends: $13,000 Tax rate: 21 % Current liabilities: $22,000 Cash: $21,000 Long-term debt: $9,000 Other assets: $37,000 Fixed assets: $139,000 Other liabilities: $5,000 Investments: $13,000 Operating assets: $49,000 During the year, Smashville, Inc., had 17,000 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.)
Ratios Calculated Year 1 Year 2 3.64 +Q+ Price-to-cash-flow 5.20 Inventory turnover 10.40 Debt-to-equity 0.70 8.32 0.56 Year 3 2.91 6.66 0.45 Based on the preceding information, your calculations, and your assumptions, which of the following statements can be included in your analysis report? Check all that apply. Cold Goose Metal Works Inc.'s ability to meet its debt obligations has improved since its debt-to-equity ratio decreased from 0.70 to 0.45. A decline in the inventory turnover ratio can be explained by the new Inventory management system that the company recently adopted, which led to more efficient inventory management. A decline in the debt-to-equity ratio implies a decline in the creditworthiness of the firm. A plausible reason why Cold Goose Metal Works Inc.'s price-to-cash-flow ratio has decreased is that investors expect lower cash flow per share in the future.
Trend Analysis Critelli Company has provided the following comparative information: Year 5 Year 4 Year 3 Year 2 Year 1 Net income $940,300 $810,600 $681,200 $582,200 $493,400 Interest expense 319,700 291,800 252,000 192,100 153,000 Income tax expense 300,896 226,968 190,736 151,372 118,416 Average total assets 5,779,817 5,103,704 4,360,748 3,704,785 3,153,171 Average stockholders' equity 1,975,420 1,769,869 1,548,182 1,373,113 1,203,415 You have been asked to evaluate the historical performance of the company over the last five years. Selected industry ratios have remained relatively steady at the following levels for the last five years: Industry Ratios Return on total assets 21.5 % Return on stockholders’ equity 44.4 % Times interest earned 4.6 Instructions: Calculate three ratios for Year 1 through Year 5. Round to one decimal place. a. Return on total assets: Year 5…
Question 1 The following are financial statements of Crane Company. Crane CompanyIncome StatementFor the Year Ended December 31, 2022 Net sales $2,192,500 Cost of goods sold 1,010,500 Selling and administrative expenses 900,500 Interest expense 78,000 Income tax expense 62,500 Net income $ 141,000 Crane CompanyBalance SheetDecember 31, 2022 Assets Current assets Cash $ 55,100 Debt investments 89,000 Accounts receivable (net) 168,400 Inventory 236,500 Total current assets 549,000 Plant assets (net) 572,500 Total assets $ 1,121,500 Liabilities and Stockholders’ Equity Current liabilities Accounts payable $ 152,000 Income taxes payable 31,000 Total current liabilities 183,000 Bonds payable 220,740 Total liabilities 403,740 Stockholders’ equity Common stock 345,000 Retained earnings 372,760…
Question Content Area Hsu Company reported the following on its income statement: Income before income taxes $325,364 Income tax expense 97,609 Net income $227,755 Interest expense was $73,540. Hsu Company's times interest earned ratio (rounded to two decimal places) is a.4.42 times b.3.1 times c.2.1 times d.5.42 times

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