Triumph's has 40,000 common shares outstanding during 2018. Requirement 1. Compute earnings per share (EPS) for 2018 for Triumph's. Round to the nearest cent. Requirement 2. Compute Triumph's Companies' price/earnings ratio for 2018. The market price per share of Triumph's stock is $15.00. Triumph's Companies Income Statement Years Ended May 31, 2018 and 2017 2018 2017 Net Sales Revenue $42,400 $41,100 Cost of Goods Sold 22,500 29,300 Interest Expense 400 320 All Other Expenses 6,700 7,800 Net Income $12,800 $3,680 Triumph's Companies Balance Sheet May 31, 2018 and 2017 Assets Liabilities 2018 2017 2018 2017 Cash $2,500 $1,600 Total Current Liabilities $24,000 $13,100 Short-term Investments 24,000 13,000 Long-term Liabilities 13,400 9,800 Accounts Receivable 7,600 5,300 Total Liabilities 37,400 22,900 Merchandise Inventory 6,800 6,800 Stockholders' Equity Other Current Assets 7,000 2,300 Common Stock 13,000 13,000 Total Current Assets 47,900 29,000 Retained Earnings 31,500 21,100 All Other Assets 34,000 28,000 Total Equity 44,500 34,100 Total Assets $81,900 $57,000 Total Liabilities and Equity $81,900 $57,000

Triumph's has 40,000 common shares outstanding during 2018. Requirement 1. Compute earnings per share (EPS) for 2018 for Triumph's. Round to the nearest cent. Requirement 2. Compute Triumph's Companies' price/earnings ratio for 2018. The market price per share of Triumph's stock is $15.00. Triumph's Companies Income Statement Years Ended May 31, 2018 and 2017 2018 2017 Net Sales Revenue $42,400 $41,100 Cost of Goods Sold 22,500 29,300 Interest Expense 400 320 All Other Expenses 6,700 7,800 Net Income $12,800 $3,680 Triumph's Companies Balance Sheet May 31, 2018 and 2017 Assets Liabilities 2018 2017 2018 2017 Cash $2,500 $1,600 Total Current Liabilities $24,000 $13,100 Short-term Investments 24,000 13,000 Long-term Liabilities 13,400 9,800 Accounts Receivable 7,600 5,300 Total Liabilities 37,400 22,900 Merchandise Inventory 6,800 6,800 Stockholders' Equity Other Current Assets 7,000 2,300 Common Stock 13,000 13,000 Total Current Assets 47,900 29,000 Retained Earnings 31,500 21,100 All Other Assets 34,000 28,000 Total Equity 44,500 34,100 Total Assets $81,900 $57,000 Total Liabilities and Equity $81,900 $57,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Triumph's has 40,000 common shares outstanding during 2018.

Requirement 1. Compute earnings per share (EPS) for 2018 for Triumph's. Round to the nearest cent.

Requirement 2. Compute Triumph's Companies' price/earnings ratio for

2018. The market price per share of Triumph's stock is $15.00.

Triumph's Companies

Income Statement

Years Ended May 31, 2018 and 2017

2018 2017

Net Sales Revenue $42,400

$41,100

Cost of Goods Sold 22,500

29,300

Interest Expense 400

320

All Other Expenses 6,700

7,800

Net Income $12,800

$3,680

Triumph's Companies

Balance Sheet

May 31, 2018 and 2017

Assets Liabilities

2018 2017 2018 2017

Cash $2,500 $1,600 Total Current Liabilities $24,000 $13,100

Short-term Investments 24,000 13,000 Long-term Liabilities 13,400 9,800

Accounts Receivable 7,600 5,300 Total Liabilities 37,400 22,900

Merchandise Inventory 6,800 6,800

Stockholders' Equity

Other Current Assets 7,000 2,300 Common Stock 13,000 13,000

Total Current Assets 47,900 29,000

Retained Earnings 31,500 21,100

All Other Assets 34,000 28,000

Total Equity 44,500 34,100

Total Assets $81,900 $57,000 Total Liabilities and Equity $81,900 $57,000

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