Smolira Golf has 10,000 shares of common stock outstanding, and the market price for a share of
Question:
Smolira Golf has 10,000 shares of common stock outstanding, and the market price for a share of stock at the end of 2010 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 2010?
SMOLIRA GOLF, INC. Balance Sheets as of December 31, 2009 and 2010 2010 2009 Liabilities and Owners' Equity 2009 2010 Assets Current assets Current liabilities $ 3,507 5,821 13,822 $ 3,291 4,787 12,398 $ 2,560 2,076 103 $ 2,133 1,730 86 Cash Accounts receivable Accounts payable Notes payable Other Inventory $23,150 $ 4,739 $ 3.949 Total $20.476 Total $13,800 $16,560 Long-term debt Owners' equity Common stock $36,000 15.634 $51,634 S69,383 $36,000 38.820 $74,820 and paid-in surplus Accumulated retained earnings Fixed assets 48,907 72.969 $96,119 Total Net plant and equipment $69.383 Total liabilities and owners' equity $96,119 Total assets SMOLIRA GOLF, INC. 2010 Income Statement Sales $186,570 Cost of goods sold 125,803 Depreciation 5,373 EBIT $ 55,394 Interest paid 1,470 Taxable income $ 53,924 Тахes 18,873 Net income $ 35,051 $11,865 23,186 Dividends Retained earnings
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Input area SMOLIRA GOLF INC 2009 2010 Assets Current assets Cash 3291 3507 Accounts receivable 47...View the full answer
Essentials Of Corporate Finance
ISBN: 9780073382463
7th Edition
Authors: Stephen Ross, Randolph Westerfield, Bradford Jordan
Related Video
Depreciation of non-current assets is the process of allocating the cost of the asset over its useful life. The cost of the asset includes the purchase price, any additional costs incurred to bring the asset to its current condition and location, and any other costs that are directly attributable to the asset. The useful life of the asset is the period over which the asset is expected to be used by the company. To calculate the depreciation, companies use different methods such as straight-line, declining-balance, sum-of-the-years\'-digits, units-of-production, and group depreciation. The chosen method will depend on the type of asset, the company\'s accounting policies, and the accounting standards that are applicable. The straight-line method allocates an equal amount of the asset\'s cost over its useful life, while the declining-balance method calculates depreciation at a fixed rate, typically double the straight-line rate, but the amount of depreciation decreases over time. The sum-of-the-years\'-digits method is similar to the declining-balance method, but the rate of depreciation is calculated using a fraction that is based on the useful life of the asset. It\'s important to note that the depreciation expense will be recorded on the company\'s income statement and the accumulated depreciation will be recorded on the company\'s balance sheet. This will decrease the value of the asset on the balance sheet over time.
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