Question
Income Statements (LO2, CFA3) Given the following information for Smashville, Inc., construct an income statement for the year: Cost of goods sold: $164,000 Investment income:
Income Statements (LO2, CFA3) Given the following information for Smashville, Inc., construct an income statement for the year:
Cost of goods sold: | $164,000 |
Investment income: | $1,200 |
Net sales: | $318,000 |
Operating expense: | $71,000 |
Interest expense: | $7,400 |
Dividends: | $3,200 |
Tax rate: | 21% |
- What are retained earnings for the year?
2. Balance Sheets (LO2, CFA4) Given the following information for Smashville, Inc., construct a balance sheet:
Current liabilities: | $42,000 |
Cash: | $21,000 |
Long-term debt: | $102,000 |
Other assets: | $36,000 |
Fixed assets: | $150,000 |
Other liabilities: | $11,000 |
Investments: | $32,000 |
Operating assets: | $64,000 |
3. Performance Ratios (LO3, CFA6) Given the information in Problems 1 and 2, calculate the gross margin, the operating margin, return on assets, and return on equity for Smashville, Inc.
4. Per-Share Ratios (LO3, CFA6) During the year, Smashville, Inc., had 17,000 shares of stock outstanding and depreciation expense of $15,000. Calculate the book value per share, earnings per share, and cash flow per share.
5. Price Ratios (LO3, CFA6) At the end of the year, Smashville stock sold for $48 per share. Calculate the price-book ratio, price-earnings ratio, and price-cash flow rat
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