SME Balance Sheet 2021 2020 Assets (in millions) Cash 85.960 56.460 Receivables 89.560 80.670 Inventories 55.750 41.260 Other Current Assets 9.950 6.760 Total Current Assets 241.220 185.150 Net Property, Plant, and Equipment 78.970 68.930 Goodwill and Other Intangible Assets 103.110 104.360 Other Non-Current Assets 6.900 4.200 Total Assets 430.200 362.640 Total Liabilities and Shareholders' Equity Payables 83.240 57.48 Current Debt 2.700 2.64 Total Current Liabilities 85.940 60.120 Long-Term Debt 122.000 119.62 Other Liabilities 21.880 22.58 Total Liabilities 229.820 202.320 Common Stock 200.380 160.32 Total Equity 200.38 160.32 Total Liabilities and Equity 430.200 362.640 INCOME STATEMENT 2021 Total Revenue (M) 488.10 Cost of Revenue 224.40 Depreciation 1.50 SG&A 167.80 Other Operating Expenses 5.60 Operating Income 88.80 Net Interest Expenses 2.30 Pretax Income 86.50 Income Tax 16.50 Net Income 70.000 2021 MARKET DATA Market Price $193.42 Shares Outstanding (M) 13.7 Tax Rate 18.80% Based on SME’s financial statements, what is the price to earnings ratio? Based on SME’s financial statements, what is its market to book ratio?

Financial Reporting, Financial Statement Analysis and Valuation

8th Edition

ISBN:9781285190907

Author:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw

Publisher:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw

Chapter8: Investing Activities

Section: Chapter Questions

Problem 1.3AIC: Estimate the average total estimated useful life of depreciable property, plant, and equipment....

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SME Balance Sheet	2021	2020
Assets (in millions)
Cash	85.960	56.460
Receivables	89.560	80.670
Inventories	55.750	41.260
Other Current Assets	9.950	6.760
Total Current Assets	241.220	185.150
Net Property, Plant, and Equipment	78.970	68.930
Goodwill and Other Intangible Assets	103.110	104.360
Other Non-Current Assets	6.900	4.200
Total Assets	430.200	362.640

Total Liabilities and Shareholders' Equity
Payables	83.240	57.48
Current Debt	2.700	2.64
Total Current Liabilities	85.940	60.120
Long-Term Debt	122.000	119.62
Other Liabilities	21.880	22.58
Total Liabilities	229.820	202.320
Common Stock	200.380	160.32
Total Equity	200.38	160.32
Total Liabilities and Equity	430.200	362.640

INCOME STATEMENT	2021
Total Revenue (M)	488.10
Cost of Revenue	224.40
Depreciation	1.50
SG&A	167.80
Other Operating Expenses	5.60
Operating Income	88.80
Net Interest Expenses	2.30
Pretax Income	86.50
Income Tax	16.50
Net Income	70.000

2021 MARKET	DATA
Market Price	$193.42
Shares Outstanding (M)	13.7
Tax Rate	18.80%

Based on SME’s financial statements, what is the price to earnings ratio?

Based on SME’s financial statements, what is its market to book ratio?

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