Question
1) What was the Sales Amount for each of the three companies? 2)What was the Net Income Amount for each of the three companies? 3)What
1) What was the Sales Amount for each of the three companies?
2)What was the Net Income Amount for each of the three companies?
3)What was the Earnings Per Share for each of the three companies?
4)What was the Price Per Earnings Ratio for each of the three companies?
5) What was the Dividends Yield for each of the three companies?
6) What was the accounts receivable turnover for each of the three companies?
7) What was the average collection period for each of the three companies?
8)What is the working capital for each of the three companies?
9)Based on the information noted above and your understanding of these three companies, which of these would you prefer to invest in? (Explain your answer)
10) What company do you feel is overvalued by shareholders and what company do you feel is undervalued by shareholders? (Explain your answer)
Company 1 Balance Sheet Income Statement Dec. 31 Dec. 31 2018 150,000,000 112,500,000 37,500,000 2017 120,000,000 90,000,000 30,000,000 76,580 43,000,000 50,000,000 1,935,000 7.947,500 (1,144,000) 101,815,o80 41,820 4,000,000 47,000,000 Accounts Receivable (Net) Cost of Goods Sold Salaries Expense Rent Expense 50,671,0o0 30,000,000 1,000,000 2,000,000 200,000 400,000 33,600,00o 27,000,000 890,000 3,000,000 240,000 200,000 31,330,000 Accumulated Total tion 104,450,220 -Depreciation Expense Utilities Expense Accounts Payable Notes Payable (Short Term) Notes Payable (Long Term) Common Stock Retained Earnings 38,589,0o0 37,497,205 Total Operating Cost 20,128,170 24,878,800 15,210,110 101,815,08o 35.327,135 23,419,740 (1.330,000) (1,200,00o) (130,000) Total Operating Income 3,900,000 Total 104,450,220 -Less: Taxes 1,116,300 Net Income 2,783,700 Outstanding Shares 6,000,000o 5.500,000 Market Price for Stock 35.00 $ 28.00 Annualized Dividends
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started