Problem 19-5 Price Ratios (LO3, CFA6) You are given the following information for Smashville, Incorporated. Cost of goods sold: Investment income: Net sales: Operating expense: Interest expense: Dividends: Tax rate: Current liabilities: Cash: Long-term debt: Other assets: Fixed assets: Other liabilities: Investments: Operating assets: $ 204,000 $ 2,000 $369,000 $ 80,000 $ 7,400 $ 10,000 Price-book ratio Price-earnings ratio Price-cash flow ratio 21% $ 16,000 $ 21,000 $ 28,000 $36,000 $ 163,000 $5,000 $ 40,000 $ 35,000 During the year, Smashville, Incorporated, had 17,000 shares of stock outstanding and depreciation expense of $12,000. At the end of the year, Smashville stock sold for $46 per share. Calculate the price-book ratio, price-earnings ratio, and price-cash flow ratio. Note: Do not round intermediate calculations. Round your answers to 2 decimal places.

Problem 19-5 Price Ratios (LO3, CFA6) You are given the following information for Smashville, Incorporated. Cost of goods sold: Investment income: Net sales: Operating expense: Interest expense: Dividends: Tax rate: Current liabilities: Cash: Long-term debt: Other assets: Fixed assets: Other liabilities: Investments: Operating assets: $ 204,000 $ 2,000 $369,000 $ 80,000 $ 7,400 $ 10,000 Price-book ratio Price-earnings ratio Price-cash flow ratio 21% $ 16,000 $ 21,000 $ 28,000 $36,000 $ 163,000 $5,000 $ 40,000 $ 35,000 During the year, Smashville, Incorporated, had 17,000 shares of stock outstanding and depreciation expense of $12,000. At the end of the year, Smashville stock sold for $46 per share. Calculate the price-book ratio, price-earnings ratio, and price-cash flow ratio. Note: Do not round intermediate calculations. Round your answers to 2 decimal places.

Fundamentals of Financial Management (MindTap Course List)

15th Edition

ISBN:9781337395250

Author:Eugene F. Brigham, Joel F. Houston

Publisher:Eugene F. Brigham, Joel F. Houston

Chapter4: Analysis Of Financial Statements

Section: Chapter Questions

Problem 24P: Income Statement for Year Ended December 31, 2018 (Millions of Dollars) Net sales 795.0 Cost of...

See similar textbooks

Similar questions

Ratio of Current Assets $875,000 to Current Liabilities $350,000 2.5:1. The firm wants to maintain Current Ratio of 2:1 by purchasing goods on credit. Compute amount of goods that should be purchased on Credit.
QUESTION 8 P18-5A P14.5A (LO 3) are presented here (in millions). Compute selected ratios, and compare liquidity, profitability, and solvency for two сотрanies. Suppose selected financial data of Target and Wal-Mart for 2020 Wal-Mart Target Corporation Stores, Inc. Income Statement Data for Year Net sales $65,357 $408,214 Cost of goods sold 45,583 304,657 Selling and administrative expenses 15,101 79,607 L Wal-Mart Target Corporation Stores, Inc. Interest expense 707 2,065 Other income (expense) (94) (411) Income tax eхрense 1,384 7,139 $ 2,488 Balance Sheet Data (End of Year) Net income $ 14,335 Current assets $18,424 $ 48,331 Noncurrent assets 26,109 122,375 Total assets $44,533 $170,706 Current liabilities $11,327 $ 55,561 Long-term debt Total stockholders' equity 17,859 44,089 15,347 71,056 Total liabilities and stockholders' equity $44,533 $170,706 Beginning-of-Year Balances Total assets $44,106 $163,429 Total stockholders' equity 13,712 65,682 Current liabilities 10,512 55,390…
Question 3 of 10 Consider the following income statement data for Oriole Inc.: Sales revenue Less: Cost of goods sold Gross profit Less: Selling and administration costs Net Income O 103.6% 4 2024 $97700 49700 48000 24425 $23575 2023 $89900 55600 34300 18400 $15900 The common-size percentage for selling and administration costs in 2024 was
Problem 17-2A (Algo) Ratios, common-size statements, and trend percents LO P1, [The following information applies to the questions displayed below.] Selected comparative financial statements of Korbin Company follow. KORBIN COMPANY Comparative Income Statements. For Years Ended December 31 2021 Sales: Cost of goods sold Gross profit Selling expenses Administrative expenses Total expenses Income before taxes Income tax expense Net income Assets Current assets 2020 $436,580 $ 334,456 262,821 173,759 61,994 39,292 Long-term investments Plant assets, net Total assets KORBIN COMPANY Comparative Balance Sheets December 31 Liabilities and Equity Current liabilities Common stock Other paid-in capital Retained earnings Total liabilities and equity 212,045 122,411 46, 155 101,286 72,473 13,480 $ 58,993 $ 37,225 29,432 75,587 46,824 9,599 2021 $ 54,789 0 100, 200 $154,989 $ 22,628 72,000 9,000 51,361 2019 $ 232,100 148,544 83,556 30,637 19,264 49,901 33,655 6,832 $ 26,823 2020 $36,670 900 91,178…
QUESTION 7 Р18.3А P18.ЗА (LO 3) Jergan Corporation are presented here. Perform ratio analysis, and discuss changes in financial position and operating results. Jergan Corporation Condensed balance sheet and income statement data for Balance Sheets December 31 2020 2019 2018 Cash $ 30,000 $ 20,000 $ 18,000 Accounts receivable (net) 50,000 45,000 48,000 Other current assets 90,000 95,000 64,000 Investments 55,000 70,000 45,000 Plant and equipment (net) 500,000 370,000 358,000 $725,000 $600,000 $533,000 Current liabilities $ 85,000 $ 80,000 $ 70,000 Long-term debt Common stock, $10 par 145,000 85,000 50,000 320,000 310,000 300,000 Retained earnings 175,000 125,000 113,000 $725,000 $600,000 $533,000 Jergan Corporation Income Statements For the Years Ended December 31 2020 2019 Sales revenue $740,000 $600,000 Less: Sales returns and allowances 40,000 30,000 Net sales 700,000 570,000 Cost of goods sold Gross profit 425,000 350,000 275,000 220,000 Operating expenses (including income taxes)…
27 A1 CORPORATION, INC. Income Statement For the Year Ended December 31, 2026 Net Sales Cost of Goods Sold Gross Profit Operating Expenses Net Income Using vertical analysis, what percentage is assigned to cost of goods sold? OA) 37.5% B) 100% OC) 62.5% $240 150 90 65 $25 D) 50%
Ratio Industry Ratios GnG Ratios 1. Current Ratio 5.3 2. Acid Test Ratio 5.1 3. Gross Profit Ratio 30% 4. Net Income Margin 7.5% 5. Receivable Turnover Ratio 9 6. Return on Asset Ratio 12% 7. Debt to Asset Ratio 1:4 Interpretation and verbal analysis compared to industry ratios: 1. Liquidity 2. Profitability 3. Solvency Computations:
#becausesneaker.... HW CH 17 Vertical Analysis of Income Statement Revenue and expense data for Innovation Quarter Inc. for two recent years are as follows: Current Year Previous Year Sales Cost of merchandise sold Selling expenses Administrative expenses Income tax expense Custom Order Sales Cost of merchandise sold Selling expenses a. Prepare an income statement in comparative form, statin each item for both years as a percent of sales. If required, round percentages to one decimal place. Enter all amounts as positive numbers. Administrative expenses Income tax expense $483,000 280,140 82,110 86,940 14,490 Innovation Quarter Inc. Comparative Income Statement For the Years Ended December 31 Current year Amount $483,000 280,140 82,110 86,940 14,490 percentage points, and administrative expenses net income as a percent of sales Current year Percent % % % % % % $420,000 218,400 79,800 71,400 21,000 % % % Previous year Amount $420,000 218,400 79,800 71,400 21,000 Previous year Percent b.…
Solvency and Profitability Trend Analysis Addai Company has provided the following comparative information: 20Y8 20Y7 20Y6 20Y5 20Y4 Net income $1,078,700 $929,900 $781,400 $667,900 $566,000 Interest expense 366,800 334,800 289,100 220,400 175,500 Income tax expense 345,184 260,372 218,792 173,654 135,840 Total assets (ending balance) 8,226,651 8,779,231 6,276,721 6,620,869 5,020,826 Total stockholders' equity (ending balance) 2,543,681 3,148,667 2,003,133 2,553,135 1,531,881 Average total assets 8,502,941 7,527,976 6,448,795 5,517,391 4,722,930 Average stockholders' equity 2,846,174 2,575,900 2,278,134 2,042,508 1,808,307 You have been asked to evaluate the historical performance of the company over the last five years. Selected industry ratios have remained relatively steady at the following levels for the last five years:…
Find the Cost of goods sold,gross profit on sales, operating expenses and income taxes, net income current year trend percentage only Trend percentages: Sales (net) Solved Case 2 A partial list of trend and common-size percentages for ABC Ltd. is given below. March, current year Cost of goods sold Gross profit on sales Operating expenses and income taxes Net income Common-size percentages: Sales (net) Cost of goods sold Gross profit on sales Operating expenses and income taxes 3 Net income C 120 ? ? ? ? 100 ? 40 20 20 March, previous year 100 100 100 100 100 100 ? ? 25 10
Industry Ratios Ratio GnG Ratios 1. Current Ratio 5.3 7.08 2. Acid Test Ratio 5.1 6.8 3. Gross Profit Ratio 30% 40% 4. Net Income Margin 7.5% 18.2% 5. Receivable Turnover Ratio 14.41 6. Return on Asset Ratio 12% 9.29% 7. Debt to Asset Ratio 1:4 LA 1 Interpretation and verbal analysis compared to industry ratios: Liquidity 1. 2. Profitability 3. Solvency
Solvency and Profitability Trend Analysis Addai Company has provided the following comparative information: 20Y8 20Y7 20Y6 20Y5 20Y4 Net income $1,078,700 $929,900 $781,400 $667,900 $566,000 Interest expense 366,800 334,800 289,100 220,400 175,500 Income tax expense 345,184 260,372 218,792 173,654 135,840 Total assets (ending balance) 8,226,651 8,779,231 6,276,721 6,620,869 5,020,826 Total stockholders' equity (ending balance) 2,543,681 3,148,667 2,003,133 2,553,135 1,531,881 Average total assets 8,502,941 7,527,976 6,448,795 5,517,391 4,722,930 Average stockholders' equity 2,846,174 2,575,900 2,278,134 2,042,508 1,808,307 You have been asked to evaluate the historical performance of the company over the last five years. Selected industry ratios have remained relatively steady at the following levels for the last five years:…