Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Skysong Inc. went public 3 years ago. The board of directors will be meeting shortly after the end of the year to decide on a

Skysong Inc. went public 3 years ago. The board of directors will be meeting shortly after the end of the year to decide on a dividend policy. In the past, growth has been financed primarily through the retention of earnings. A stock or a cash dividend has never been declared. Presented below is a brief financial summary of Skysong Inc. operations.

($000 omitted)

2021

2020

2019

2018

2017

Sales revenue $19,960 $15,980 $13,980 $6,050 $4,030
Net income 2,390 1,410 800 700 250
Average total assets 22,130 19,180 11,440 4,240 2,990
Current assets 7,950 6,040 2,990 1,190 1,000
Working capital 3,580 3,230 1,210 500 400
Common shares:
Number of shares outstanding (000) 2,000 2,000 2,000 20 20
Average market price $10 $6 $4

(b) Compute the return on assets, profit margin on sales, earnings per share, price-earnings ratio, and current ratio for each of the 5 years for Skysong Inc. (Round answers to 2 decimal places, e.g. 2.25 or 2.25%.)

2021

2020

2019

2018

2017

Return on assets % % % % %
Profit margin on sales % % % % %
Earnings per share

$

$

$

$

$

Price-earnings ratio times times times
Current ratio times times times times times

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_2

Step: 3

blur-text-image_3

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

Cost Accounting A Managerial Emphasis

Authors: Srikant M. Datar, Madhav V. Rajan, Charles T. Horngren, Louis Beaubien, Chris Graham

7th Canadian Edition

133138445, 978-0133926330, 133926338, 978-0133138443

More Books

Students also viewed these Accounting questions

Question

What is cultural diversity?

Answered: 1 week ago