RATIO ANALYSIS Liquidity Ratios Problem 4. Gray Corporation's financial statements for the last year are shown below. All figures are in thousands (P000). The firm paid a P1,000 dividend to its stockholders during the year. Two million shares of stock are outstanding. The stock is currently trading at a price of P50. There were no sales of new stock. Lease payments totaling P400 are included in cost and expense. Compute for: 1. Book Value per Share 2. Market-to-Book Ratio 3. Times-Interest-Earned 4. Cash flow per Share Cash Accounts receivable Inventory Current Assets Gross Fixed assets Accumulated depreciation Net fixed assets Total assets LIABILITIES Accounts payable Accruals BALANCE SHEET ASSETS Current Liabilities Long term Debt Equity Total liabilities & equity Sales COGS Gross Margin Depreciation EBIT Interest Cash Expenses EBT Tax Net Income INCOME STATEMENT P 2,000 12,000 14,000 P28,000 P27,000 (16,000) 11,000 P39.000 P 3,000 1,000 P4,000 10,000 25,000 P39.000 P100,000 80,000 P 20,000 P 8,000 1,600 P 10,400 800 P 9,600 2,600 P 7,000

RATIO ANALYSIS Liquidity Ratios Problem 4. Gray Corporation's financial statements for the last year are shown below. All figures are in thousands (P000). The firm paid a P1,000 dividend to its stockholders during the year. Two million shares of stock are outstanding. The stock is currently trading at a price of P50. There were no sales of new stock. Lease payments totaling P400 are included in cost and expense. Compute for: 1. Book Value per Share 2. Market-to-Book Ratio 3. Times-Interest-Earned 4. Cash flow per Share Cash Accounts receivable Inventory Current Assets Gross Fixed assets Accumulated depreciation Net fixed assets Total assets LIABILITIES Accounts payable Accruals BALANCE SHEET ASSETS Current Liabilities Long term Debt Equity Total liabilities & equity Sales COGS Gross Margin Depreciation EBIT Interest Cash Expenses EBT Tax Net Income INCOME STATEMENT P 2,000 12,000 14,000 P28,000 P27,000 (16,000) 11,000 P39.000 P 3,000 1,000 P4,000 10,000 25,000 P39.000 P100,000 80,000 P 20,000 P 8,000 1,600 P 10,400 800 P 9,600 2,600 P 7,000

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter15: Financial Statement Analysis

Section: Chapter Questions

Problem 55E: Rebert Inc. showed the following balances for last year: Reberts net income for last year was...

See similar textbooks

Similar questions

es Fondren Machine Tools has total assets of $3,420,000 and current assets of $803,000. It turns over its fixed assets 1.4 times per year. Its return on sales is 5.4 percent. It has $1,630,000 of debt. What is its return on stockholders' equity? (Do not round intermediate calculations. Input your answer as a percent rounded to 2 decimal places.) Return on stockholders' equity %
For the year ended December 31, 2022, Settles Incorporated earned an ROI of 7.2%. Sales for the year were $11 million, and average asset turnover was 1.8. Average stockholders' equity was $3.1 million. Required: a. Calculate Settles Incorporated's margin and net income. Note: Round "Margin" answer to 1 decimal place. Enter the net income answer in dollars, i.e., $5 million should be entered as 5,000,000. b. Calculate Settles Incorporated's return on equity. Note: Round your answer to 1 decimal place. a. Margin a. Net income b. Return on equity %
Selected financial data from the September 30 year-end statements of Green Company are given below: Interest expense on long-term debt P95,000.00 Profit P480,000.00 Total Assets P5,100,000.00 12% interest bearing long term debt* P760,000.00 7% Preference shares, P100 par P900,000.00 Total Stockholders' equity P3,200,000.00 *This is the only interest bearing liability Green Company has. The Company's tax rate is 25%. Total assets at the beginning of the year was P4,800,000 and total stockholders' equity was P2,900,000. There has been no change on the preference shares during the year. Required: A. Compute the return on average total assets. B. Compute the return on average ordinary shareholders' equity.
q8- Theta Ltd had Cash Flow from Operations for the last financial year of $781,000. During the year it paid $104,000 in interest. Its tax rate is 30%. Its share price is $22.35 and it has 160,000 shares outstanding. What is its P/CF ratio? a. 4.04 b. 4.19 c. 4.58 d. 5.05 Clear my choice
Consider a company which had revenues of $49 million over the last twelve months. Depreciation and amortization expenses were $7 million. Operating margin was 37.2%. It X has $29 million of debt, $8 million in cash, and 7 million shares outstanding. Comparable companies are trading at an average trailing EV/EBITDA multiple of 11. How much is each share worth using relative valuation? Round to one decimal place. Selected Answer: Correct Answer: 31.8 ✔36.6 ± 0.1
The balance sheet for Violeta Corporation at the end of the current year includes the followig hover BIE 2.7 3000 125.000 LEG0 (an) sldsvisoen 90000 Bonds payable, 6% 6% Preferred stock, P100 P5,000,000 1,000,000 2,000,000 edilidals idab Common stock, P10 par par
During 20Y5, Acme Inc. reports average total assets of $175,000, sales revenues of $218,750, and net income of $35,000. Throughout 20Y5, Acme's debt to equity ratio is 1.45. What is Acme's return on equity in 20Y5? Round to the nearest whole number and do not enter a percent sign or a decimal point (e.g., enter 89, not 89.0% or 0.89).
en Machine Tools has total assets of $3,130,000 and current assets of $866,000. It turns over its fixed assets 2.7 times pe urn on sales is 8.5 percent. It has $1,920,000 of debt. is its return on stockholders' equity? Do not round intermediate calculations. Input your answer as a percent rounded to 2 decimal places. n on stockholders' equity %
For the year ended December 31, 2022, Settles Incorporated earned an ROI of 10.5%. Sales for the year were $9 million, and average asset turnover was 2.1. Average stockholders' equity was $2.8 million. Required: Calculate Settles Incorporated's margin and net income. Note: Round "Margin" answer to 1 decimal place. Enter the net income answer in dollars, i.e., $5 million should be entered as 5,000,000. Calculate Settles Incorporated's return on equity. Note: Round your answer to 1 decimal place.
During 20Y5, Cone Corporation reports average total assets of $175,000, sales revenues of $218,750, and net income of $35,000. Throughout 20Y5, Cone's debt to equity ratio was 1.65. What is Cone's return on equity in 20Y5? Round to the nearest whole number and do not enter a percent sign or a decimal point (e.g., enter 89, not 89.0% or 0.89).
What is the net income for the current year? During the year, Homo sold 100,000 shares with P20 par value for P30 per share and received cash in full. Dividend of P1, 500,000 was paid in cash during the year. The increase (decrease) in the accounts of Homo Company for the current year are as follows: Equipment P3,000,000 (800,000) Accounts payable Cash 1,500,000 Bonds payable 2,000,000 Investments (1,000,000) Accounts receivable (net) 3, 500,000 Inventory 3,900,000 Equipment with Fair value of P2,000,000 was donated by a shareholder during the year. Your answer
Network Communications has total assets of $1,570,000 and current assets of $626,000. It turns over its fixed assets six times a year. It has $374,000 of debt. Its return on sales is 7 percent. What is its return on stockholders' equity? (Do not round Intermediate calculations. Input your answer as a percent rounded to 2 decimal places.) Return on stockholders' equity %