just want to know how could it get the answer about earnings per share? need detail caculation thankssss!!!!!!!
Problen Jens Har below: aber 31, 2017 for the wird Lin Corp. Selected to a stand BF Trading Lid. $134.000 Current assets Cash Short-term investments Current receivables, net Inventories Prepaid expenses Total current assets Total assets Total current liabilities Total liabilities Preferred shares, $10.00 (300 shares) Common shares (75,000 shares) Common shares (10,000 shares) Total shareholders' equity Market price per common share 312.000 424,000 20.000 994,000 V 2,070.000 748.000 1,444,000 60,000 $110,000 24,000 392,000 448,000 28,000 1,002,000 2,314,000 800,000 1,500,000 450.000 100.000 (626,000 836,00 555.00 Selected balance sheet data at January 1, 2017: BFI Trading Lid. $ 330,000 448,000 1,970,000 60,000 Lin Corp. $ 280,000 470,000 1,720,000 Current receivables, net Inventories Total assets Preferred shareholders' equity, $10.00 (300 shares) Common shares (75,000 shares) Common shares (10,000 shares) Total shareholders' equity 450,000 100,000 560,000 720,000 Your investment strategy is to purchase the shares of companies that have low price earnings ratios but appear to be in good shape financially. Assume you have analyzed all other factors, and your decision depends on the results of the ratio analysis to be performed. Required Compute the following ratios for both companies for the current year and decide which company's shares better fit your investment strategy: a. Current ratio b. Acid-test ratio c. Inventory turnover d. Days' sales in receivables e. Debt ratio v f. Times-interest-eamed ratio v g. Return on net sales h. Return on total assets i. Return on common shareholders' equity j. Earnings per common stre k Book value per common share L Price-earnings ratio mg Ltd. and Lin Corp. and have assembled the no yas bar supply business. (Click the icon to view the income statement data.) (Click the icon to view the balance sheet and market price data.) Your investment strategy is to purchase the shares of companies that have low pricelearnings ratios but appear to be in good shape financially. Assume you have analyzed all other factors, and your decision depends on the results of the ratio analysis to be performed. Required Compute the following ratios for both companie better fit your investment strategy: a. Current ratio b. Acid-test ratio c. Inventory turnover d. Days' sales in average receivables .. Debt ratio f. Times interest-earned ratio J. Compute the earnings per share for both companies. (Round your answers to two decimal places.) BFI Earnings per share: Lin 7.90 $ 1.65 k. Compute the book value per common share for both companies (Round your answers to two decimal places.) BFI Lin Book value per common share: $ 56.60 $ 11.15 1. Compute the price/earnings ratio for both companies. (Round your answers to two decimal places.) BFI Lin Price/earnings ratio: 10.63 33.33 Question is complete. MacBook LIUDICITU Assume that you are purchasing shares in a company in the variety store and gas bar supply business. Suppose you have narrowed the choice to BFI Trading Ltd. and Lin Corp. and have assembled the following data: Selected income statement data for the year ended December 31, 2017: Excel Templa Using ra two shar Net sales (all on credit) Cost of goods sold Income from operations Interest expense Net income BFI Trading Ltd. $1,060,000 602,000 186,000 40,000 82,000 Lin Corp. $1,246,000 722,000 202,000 10,000 124,000 Chapter 18 Financial Stateme
