Question
Requirement 1i. Compute the price/earnings ratio for 2016 and 2015 . Begin by selecting the formula to compute the price/earnings ratio. Price/earnings ratio = Market
Requirement 1i. Compute the price/earnings ratio for
2016
and
2015.
Begin by selecting the formula to compute the price/earnings ratio.
| Price/earnings ratio | = | Market price per share of common stock / Earnings per share |
Now,
compute
the price/earnings ratio for
2016
and
2015.
(Round your interim calculations and final answers to two decimal places, X.XX.)
2016:
2015
Lanfield, Inc.
Comparative Balance Sheet
December 31, 2016 and 2015
2016
2015
2014*
Assets
Current Assets:
Cash
$98,000
$97,000
Accounts Receivables, Net
112,000
119,000
$106,000
Merchandise Inventory
147,000
162,000
202,000
Prepaid Expenses
12,000
7,000
Total Current Assets
369,000
385,000
Property, Plant, and Equipment, Net
219,000
176,000
Total Assets
$588,000
$561,000
$600,000
Liabilities
Total Current Liabilities
$226,000
$246,000
Long-term Liabilities
122,000
94,000
Total Liabilities
348,000
340,000
Stockholders' Equity
Preferred Stock, 4%
108,000
108,000
Common Stockholders' Equity, no par
132,000
113,000
94,000
Total Liabilities and Stockholders' Equity
$588,000
$561,000
* Selected 2014 amounts
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Management Audits For Excellence
Authors: Dorsey J. Talley
1st Edition
0873890396, 978-0873890397
