Q.3= REMAINING PARTS....
Use the following selected financial information for Cascabel Corporation to answer questions
Cascabel Corporation
Balance Sheet , December 31, 2015
Assets Liabilities and
Current assets Current liabilities
Cash 2 Accounts payable 36
Short-term investments 10 Accrued liabilities 25
Accounts receivable 52 Total current liabilities 61
Inventory 57
Other current assets 8 Long-term debt 102
Total current assets 129 Total liabilities 163
Long-term assets Stockholders' equity
Net Plant 195 Common stock (10) 110
Total stockholders' equity 161
Total assets 324 Total liabilities and equity 324
Cascabel Corporation
Income Statement
For the Year Ended December 31, 2015
Net sales 345
Cost of goods sold 248
Gross profit 97
Operating expenses 74
Operating profit 23
Interest expense 8
Earnings before taxes 15
Income tax expense 4
Net profit 11
Additional information: Market price of stock is Rs.25. Firm declared and paid dividend 20% on par value of stock.
Compute following ratios:
(7)Earnings per share (8)Book value per share (9)Interest coverage ratio (10) Gross Profit ratio
Earning per share is the amount of profit attributable to each share. It is calculated as:
Substituting the values, calculate the EPS:
Book value per share can be calculated as:
Substituting the values, calculate the Book value per share:
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