Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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,

image text in transcribed

image text in transcribed

image text in transcribed 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

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The Meaningful Money Handbook

Authors: Pete Matthew

1st Edition

0857196510, 978-0857196514

More Books

Students also viewed these Finance questions

Question

What is the relationship between humans?

Answered: 1 week ago

Question

What is the orientation toward time?

Answered: 1 week ago