37. Market Value Ratios Smolira Golf has 10,000 shares of common stock outstanding, and the market price for a share of stock at the end of 2019 was $73. What is the price-earnings ratio? What is the price-sales ratio? What are the dividends per share? What is the market-to-book ratio at the end of 2019?

Financial Accounting: The Impact on Decision Makers
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ISBN:9781305654174
Author:Gary A. Porter, Curtis L. Norton
Publisher:Gary A. Porter, Curtis L. Norton
Chapter12: The Statement Of Cash Flows
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37. Market Value Ratios Smolira Golf has 10,000 shares of common stock

outstanding, and the market price for a share of stock at the end of 2019 was

$73. What is the price-earnings ratio? What is the price-sales ratio? What are

the dividends per share? What is the market-to-book ratio at the end of 2019?

90
PART 2
Understanding Financial Statements and Cash Flow
SMOLIRA GOLF, INC.
Balance Sheets as of December 31, 2018 and 2019
2018
2019
2018
2019
Assets
Liabilities and Owners' Equity
Current assets
Current liabilities
$ 5,298
$ 3,754
$ 3,986
Cash
5,827
Accounts payable
Accounts receivable
7,707
8,477
Notes payable
3,045
3,318
Inventory
12,150
$ 25, 155
21,956
$ 36,260
Other
152
179
$ 6,951
$ 24,700
$ 7,483
$ 16,000
Total
Total
Long-term debt
Owners' equity
$ 37,000
55, 189
$ 92,189
Common stock and paid-in surplus
$ 40,000
Fixed assets
Accumulated retained eamings
28,805
$ 68,805
$ 100,456
Net plant and equipment $ 75,301
$ 79,412
Total
$ 100,456
$115,672 Total liabilities and owners' equity
$115,672
Total assets
SMOLIRA GOLF, INCc.
2019 Income Statement
Sales
$229,854
Cost of goods sold
184,317
8,730
$ 36,807
Depreciation
EBIT
Interest paid
1,811
Taxable income
$ 34,996
Тахes
7,349
$ 27,647
Net income
Dividends
$16,000
Addition to retained earnings
11,647
Transcribed Image Text:90 PART 2 Understanding Financial Statements and Cash Flow SMOLIRA GOLF, INC. Balance Sheets as of December 31, 2018 and 2019 2018 2019 2018 2019 Assets Liabilities and Owners' Equity Current assets Current liabilities $ 5,298 $ 3,754 $ 3,986 Cash 5,827 Accounts payable Accounts receivable 7,707 8,477 Notes payable 3,045 3,318 Inventory 12,150 $ 25, 155 21,956 $ 36,260 Other 152 179 $ 6,951 $ 24,700 $ 7,483 $ 16,000 Total Total Long-term debt Owners' equity $ 37,000 55, 189 $ 92,189 Common stock and paid-in surplus $ 40,000 Fixed assets Accumulated retained eamings 28,805 $ 68,805 $ 100,456 Net plant and equipment $ 75,301 $ 79,412 Total $ 100,456 $115,672 Total liabilities and owners' equity $115,672 Total assets SMOLIRA GOLF, INCc. 2019 Income Statement Sales $229,854 Cost of goods sold 184,317 8,730 $ 36,807 Depreciation EBIT Interest paid 1,811 Taxable income $ 34,996 Тахes 7,349 $ 27,647 Net income Dividends $16,000 Addition to retained earnings 11,647
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