18

Low's Companies, a home improvement store chain, reported the following summarized figures: F (Click the icon to view the income statement.) (Click the icon to view the balance sheets.) Low's has 20,000 common shares outstanding during 2018 Read the requirements Requirement 1. Compute earnings per share (EPS) for 2018 for Low's. Round to the nearest cent. Begin by selecting the formula to calculate Low's Companies' EPS. Then enter the amounts and calculate the EPS for 2018. (Abbreviation used: Weighted avg number of CSO = weighted average number of common shares outstanding, market price per share of CS = market price per share of common stock. Complete all input boxes. Enter a "0" for balance with a zero value. Round your answer to the nearest cent, $X.XX.) = EPS Requirement 2. Compute Low's Companies' pricelearnings ratio for 2018. The market price per share of Low's stock is $11.50. Begin by selecting the formula to calculate Low's Companies' price/earnings ratio. Then enter the amounts and calculate the EPS for 2018. (Abbreviation used: Weighted avg number of CSO = weighted average number of common shares outstanding, market price per share of CS = market price per share of common stock. Round your answer to two decimal places, X.XX.) Pricelearnings ratio = Requirement 3. What do these results mean when evaluating Low's Companies' profitability? (Assume the following industry averages. EPS = $0.25. priceleamings ratio = 9.3.) Low's Companies' pricelearnings ratio for 2018 means that the company's stock is selling at This is the price/earnings ratio would possibly i Income Statement Low's Companies Income Statement Years Ended May 31, 2018 and 2017 2018 2017 Net Sales Revenue Cost of Goods Sold Interest Expense 42.100 $ 21,200 700 6.200 41,100 24.900 140 8.400 7,660 All Other Expenses Net Income 14,000 $ Print Print Done Done Balance Sheets Low's Companies Balance Sheet May 31, 2018 and 2017 Assets 2018 Liabilities 2018 2017 2017 Cash $ 13,30 2,300 $ 29,000 7,200 7.000 9,900 23,200 7 Short-term Investments - Accounts Receivable Merchandise Inventory Other Current Assets Total Current Assets All Other Assets Total Assats 1,800 Total Current Liabilities $ 27,000 $ 13,000 Long-term Liabilities 12,400 5,700 Total Liabilities 39,400 8.200 Stockholders' Equity 13.000 31,200 Retained Earnings 34,100 47,100 57,200 Total Liabilities and Eos 86,500 $ 2,500 Common Stock 500 13,000 21,000 34,000 57,200 32,000 20.000 Total Equity 5 86,508 5 Print Done