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Low Corporation's forecasted 2022 financial statements follow, along with some industry average ratios. Calculate Low's 2022 forecasted ratios, compare them with the industry average data,
Low Corporation's forecasted 2022 financial statements follow, along with some industry average ratios. Calculate Low's 2022 forecasted ratios, compare them with the industry average data, and comment briefly on Low's projected strengths and weaknesses. Notes: a Industry average ratios have been stable for the past 4 years. b Based on year-end balance sheet figures. c Calculation is based on a 365 -day year. Low Corporation: Forecasted Income Statement for 2022 SalesCostofgoodssoldSelling,generalandadministrativeexpensesEarningsbeforeinterestandtaxes(EBIT)InterestexpenseEarningsbeforetaxes(EBT)Taxes(25%)Netincome$4,290,0003,580,000525,456184,54440,000144,54436,136$108,408 Low Corporation: Per Share Data for 2022 EPSCashdividendspershareP/EratioMarketprice(average)Numberofsharesoutstanding$4.71$0.955.0$23.5723,000
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