Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

O 4. (20pts) Planet Express Corporation has 100,000 shares of common stock outstanding and these shares are currently trading at $5 per share. Calculate, interpret,

image text in transcribed
image text in transcribed
O 4. (20pts) Planet Express Corporation has 100,000 shares of common stock outstanding and these shares are currently trading at $5 per share. Calculate, interpret, and fully explain the ratios in (a)-(e). Analyze how the business is performing according to these ratios. a Total debt ratio b. Inventory turnover C. Return on equity d. Price-earnings ratio e. Enterprise value Planet Express Corporation Balance Sheet December 31, 2020 Cash Accounts receivable Inventory Current assets $100,000 300,000 200.000 $222222 Accounts payable Notes payable Current liabilities Long-term debt Total liabilities $400,000 500.000 $24.722 600.000 $7222222 Tangible net fixed assets Intangible net fixed assets $1,300,000 100.000 Common stock Accumulated retained earnings $100,000 1212 Total assets Sama Total liabilities & owners' equity 5 Income Statement Jan Dec 31, 2020 Sales Costs Depreciation EBIT Interest Taxable income Taxes 213 Net income $800,000 500,000 100,000 $21 40.000 $27

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

Accounting Principles

Authors: Paul D Kimmel, Donald E Kieso Jerry J Weygandt

IFRS global edition

1-119-41959-4, 470534796, 9780470534793, 9781119419594 , 978-1119419617

Students also viewed these Accounting questions