RATIO ANALYSIS Liquidity Ratios Problem 4. Gray Corporation's financial statements for the last year are shown below. All figures are in thousands (P000). The firm paid a P1,000 dividend to its stockholders during the year. Two million shares of stock are outstanding. The stock is currently trading at a price of P50. There were no sales of new stock. Lease payments totaling P400 are included in cost and expense. Compute for: 1. Book Value per Share 2. Market-to-Book Ratio 3. Times-Interest-Earned 4. Cash flow per Share Cash Accounts receivable Inventory Current Assets Gross Fixed assets Accumulated depreciation Net fixed assets Total assets LIABILITIES Accounts payable Accruals BALANCE SHEET ASSETS Current Liabilities Long term Debt Equity Total liabilities & equity Sales COGS Gross Margin Depreciation EBIT Interest Cash Expenses EBT Tax Net Income INCOME STATEMENT P 2,000 12,000 14,000 P28,000 P27,000 (16,000) 11,000 P39.000 P 3,000 1,000 P4,000 10,000 25,000 P39.000 P100,000 80,000 P 20,000 P 8,000 1,600 P 10,400 800 P 9,600 2,600 P 7,000

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Chapter1: Investments: Background And Issues
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RATIO ANALYSIS
Liquidity Ratios
Problem 4. Gray Corporation's financial
statements for the last year are shown
below. All figures are in thousands
(P000). The firm paid a P1,000
dividend to its stockholders during the
year. Two million shares of stock are
outstanding. The stock is currently
trading at a price of P50. There were
no sales of new stock.
Lease
payments totaling P400 are included in
cost and expense.
Compute for:
1. Book Value per Share
2. Market-to-Book Ratio
3. Times-Interest-Earned
4. Cash flow per Share
+
Cash
Accounts receivable
Inventory
Current Assets
Gross Fixed assets
Accumulated depreciation
Net fixed assets
Total assets
LIABILITIES
Accounts payable
Accruals
Current Liabilities
Long term Debt
Equity
BALANCE SHEET
ASSETS
Total liabilities & equity
Sales
COGS
Gross Margin
Depreciation
EBIT
Interest
Cash Expenses
EBT
Tax
Net Income
INCOME STATEMENT
P 2,000
12,000
14,000
P28,000
P27,000
(16,000)
11,000
P39.000
P 3,000
1,000
P4,000
10,000
25,000
P39.000
P100,000
80,000
P 20,000
P 8,000
1,600
P 10,400
800
P 9,600
2,600
P 7,000
000
ΠΕΝΤ
Transcribed Image Text:RATIO ANALYSIS Liquidity Ratios Problem 4. Gray Corporation's financial statements for the last year are shown below. All figures are in thousands (P000). The firm paid a P1,000 dividend to its stockholders during the year. Two million shares of stock are outstanding. The stock is currently trading at a price of P50. There were no sales of new stock. Lease payments totaling P400 are included in cost and expense. Compute for: 1. Book Value per Share 2. Market-to-Book Ratio 3. Times-Interest-Earned 4. Cash flow per Share + Cash Accounts receivable Inventory Current Assets Gross Fixed assets Accumulated depreciation Net fixed assets Total assets LIABILITIES Accounts payable Accruals Current Liabilities Long term Debt Equity BALANCE SHEET ASSETS Total liabilities & equity Sales COGS Gross Margin Depreciation EBIT Interest Cash Expenses EBT Tax Net Income INCOME STATEMENT P 2,000 12,000 14,000 P28,000 P27,000 (16,000) 11,000 P39.000 P 3,000 1,000 P4,000 10,000 25,000 P39.000 P100,000 80,000 P 20,000 P 8,000 1,600 P 10,400 800 P 9,600 2,600 P 7,000 000 ΠΕΝΤ
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