The following information is available for Tanaka Corporation. Compute earnings per share for 2018 and 2017 for Tanaka, and comment on the change. Tanaka's primary competitor, Browning Corporation, had earnings per share of $1 per share in 2018. Comment on the difference in the ratios of the two companies. (b) Compute the current ratio and debt to assets ratio for each year, and comment on the changes. (c) Compute free cash flow for each year, and comment on the changes. 2018 2017 Current assets $ 54,000 $ 36,000 Total assets 240,000 205,000 Current liabilities 22,000 30,000 Total liabilities 72,000 100,000 Net income 90,000 50,000 Net cash provided by operating activities 100,000 56,000 Preferred dividends 6,000 6,000 Common dividends 3,000 1,500 Expenditures on property, plant, and equipment 27,000 12,000 Shares outstanding at beginning of year 40,000 30,000 Shares outstanding at end of year 75,000 40,000
The following information is available for Tanaka Corporation. Compute earnings per share for 2018 and 2017 for Tanaka, and comment on the change. Tanaka's primary competitor, Browning Corporation, had earnings per share of $1 per share in 2018. Comment on the difference in the ratios of the two companies. (b) Compute the current ratio and debt to assets ratio for each year, and comment on the changes. (c) Compute free cash flow for each year, and comment on the changes. 2018 2017 Current assets $ 54,000 $ 36,000 Total assets 240,000 205,000 Current liabilities 22,000 30,000 Total liabilities 72,000 100,000 Net income 90,000 50,000 Net cash provided by operating activities 100,000 56,000 Preferred dividends 6,000 6,000 Common dividends 3,000 1,500 Expenditures on property, plant, and equipment 27,000 12,000 Shares outstanding at beginning of year 40,000 30,000 Shares outstanding at end of year 75,000 40,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
The following information is available for Tanaka Corporation.
- Compute earnings per share for 2018 and 2017 for Tanaka, and comment on the change. Tanaka's primary competitor, Browning Corporation, had earnings per share of $1 per share in 2018. Comment on the difference in the ratios of the two companies.
(b) Compute the
(c) Compute
|
|
2018 |
2017 |
|
Current assets |
$ 54,000 |
$ 36,000 |
|
Total assets |
240,000 |
205,000 |
|
Current liabilities |
22,000 |
30,000 |
|
Total liabilities |
72,000 |
100,000 |
|
Net income |
90,000 |
50,000 |
|
Net cash provided by operating activities |
100,000 |
56,000 |
|
Preferred dividends |
6,000 |
6,000 |
|
Common dividends |
3,000 |
1,500 |
|
Expenditures on property, plant, and equipment |
27,000 |
12,000 |
|
Shares outstanding at beginning of year |
40,000 |
30,000 |
|
Shares outstanding at end of year |
75,000 |
40,000 |
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