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

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

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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Comparative financial statements for Weller Corporation, a merchandising company, for the year ending December 31 appear below. The company did not issue any new common stock during the year. A total of 970,000 shares of common stock were outstanding. The interest rate on the bond payable was 12 % , the income tax rate was 40%, and the dividend per share of common stock was $0.75 last year and $0.40 this year. The market value of the company's common stock at the end of this year was $26.50. All of the company's sales are on account. Assets Current assets: Cash Accounts receivable, net Inventory Prepaid expenses Total current assets. Property and equipment: Land Buildings and equipment, net Total property and equipment Total assets Liabilities and Stockholders' Equity Current liabilities: Accounts payable Accrued liabilities Notes payable, short term liabilities Total current Long-term liabilities: Bonds payable Total liabilities Stockholders' equity: Common stock Weller Corporation…
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Smashed Pumpkins Company paid $208 in dividends and $631 in interest over the past year. The company increased retained earnings by $528 and had accounts payable of $702. Sales for the year were $16,580 and depreciation was $756. The tax rate was 40 percent. What was the company's EBIT? Multiple Choice $6,632 $1,511 $1,227 $1,858 $2,129
Comparative financial statements for Weller Corporation, a merchandising company, for the year ending December 31 appear below. The company did not issue any new common stock during the year. A total of 600,000 shares of common stock were outstanding. The interest rate on the bond payable was 10%, the income tax rate was 40%, and the dividend per share of common stock was $0.75 last year and $0.40 this year. The market value of the company’s common stock at the end of this year was $22. All of the company’s sales are on account. Weller CorporationComparative Balance Sheet(dollars in thousands) This Year Last Year Assets Current assets: Cash $ 1,230 $ 1,310 Accounts receivable, net 10,500 7,900 Inventory 12,500 12,200 Prepaid expenses 770 550 Total current assets 25,000 21,960 Property and equipment: Land 9,100 9,100 Buildings and equipment, net 49,348 37,336 Total property and equipment 58,448 46,436 Total assets $ 83,448 $ 68,396…
Comparative financial statements for Weller Corporation, a merchandising company, for the year ending December 31 appear below. The company did not issue any new common stock during the year. A total of 600,000 shares of common stock were outstanding. The interest rate on the bond payable was 10%, the income tax rate was 40%, and the dividend per share of common stock was $0.75 last year and $0.40 this year. The market value of the company’s common stock at the end of this year was $20. All of the company’s sales are on account. Weller CorporationComparative Balance Sheet(dollars in thousands) This Year Last Year Assets Current assets: Cash $ 1,230 $ 1,350 Accounts receivable, net 10,900 6,900 Inventory 13,600 10,800 Prepaid expenses 670 620 Total current assets 26,400 19,670 Property and equipment: Land 9,200 9,200 Buildings and equipment, net 48,992 41,286 Total property and equipment 58,192 50,486 Total assets $ 84,592 $ 70,156…
King Lyon has the following assets: Current assets Capital assets Total assets $3,280,000 8,150,000 $11,430,000 During 4 months of the year, current assets drop to $1,650,000 (total assets will then be $9,800,000). Its operating profit (EBIT) is expected to be $499,500. Its tax rate is 30 percent. Shares are valued at $20. Its capital structure is short-term financing at 3 percent and long-term financing of 30 percent equity, 70 percent debt at 4 percent. a. Calculate expected EPS if the firm is perfectly hedged. (Do not round intermediate calculations and round your final answer to 2 decimal places.) EPS $
Sub : FinancePls answer very fast.I ll upvote. Thank You Smashed Pumpkins Company paid $136 in dividends and $568 in interest over the past year. The company increased retained earnings by $474 and had accounts payable of $594. Sales for the year were $16,265 and depreciation was $720. The tax rate was 21 percent. What was the company's EBIT? Options: $984 $1,333 $1,340 $6,181 $1,823
Café Creations Incorporated has net cash flow from financing activities for the last year of $25 million. The company paid $15 million in dividends last year. During the year, the change in notes payable on the balance sheet was a decrease of $40 million, and change in common and preferred stock was an increase of $50 million. The end of year balance for long-term debt was $40 million. What was their beginning of year balance for long-term debt? Multiple Choice $20 million $30 million $40 million $10 million
Comparative financial statements for Weller Corporation, a merchandising company, for the year ending December 31 appear below. The company did not issue any new common stock during the year. A total of 940,000 shares of common stock were outstanding. The interest rate on the bond payable was 12%, the income tax rate was 40%, and the dividend per share of common stock was $0.75 last year and $0.40 this year. The market value of the company’s common stock at the end of this year was $25. All of the company’s sales are on account. Weller CorporationComparative Balance Sheet(dollars in thousands) This Year Last Year Assets Current assets: Cash $ 5,304 $ 5,350 Accounts receivable, net 15,800 10,450 Inventory 10,400 8,760 Prepaid expenses 1,940 2,380 Total current assets 33,444 26,940 Property and equipment: Land 7,400 7,400 Buildings and equipment, net 20,600 20,400 Total property and equipment 28,000 27,800 Total assets $ 61,444 $ 54,740…

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