Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Some recent financial statements for Earl Grey Golf Corp. follow. 2018 EARL GREY GOLF CORP. 2017 and 2018 Statement of Financial Position Assets Liabilities and

image text in transcribedimage text in transcribed

Some recent financial statements for Earl Grey Golf Corp. follow. 2018 EARL GREY GOLF CORP. 2017 and 2018 Statement of Financial Position Assets Liabilities and Owners' Equity 2017 2018 2017 Current assets Current liabilities Cash $ 24, 236 26,000 Accounts payable $ 21, 220 Accounts receivable 13,216 17,100 Notes payable 19,000 Inventory 25,584 29,000 Other 11,543 Total $ 63,036 72,100 Total $ 51,763 Long-term debt $ 88,000 Owners' equity Common stock and paid-in $ 45,000 surplus Retained earnings 131,341 Fixed assets Net plant and $253,068 364,900 Total $176, 341 equipment Total assets $316,104 437,000 Total liabilities and owners' $316,104 equity $ 29,000 10,900 18,300 $ 58,200 $100,800 $ 45,000 233,000 $278,000 $437,000 EARL GREY GOLF CORP. 2018 Statement of Comprehensive Income Sales $ 537,395 Cost of goods sold 257,000 Depreciation 48,800 Earnings before interest and tax $231,595 Interest paid 13,830 Taxable income $217,765 Taxes (40%) 87,106 Net income $130,659 Dividends $ 29,000 Additions to retained earnings 101,659 Earl Grey Golf Corp. has 20,000 shares of common stock outstanding, and the market price for a share of stock at the end of 2018 was $21. What is the price-earnings ratio? (Round the intermediate calculations to 2 decimal places. Round the final answer to 2 decimal places.) Price-earnings ratio times What are the dividends per share? (Round the final answer to 2 decimal places. Omit $ sign in your response.) Dividends $ per share What is the market-to-book ratio at the end of 2018? (Do not round intermediate calculations. Round the final answer to 2 decimal places.) Market-to-book ratio times If the company's growth rate is 8 %, what is the PEG ratio? (Round the intermediate calculations to 2 decimal places. Round the final answer to 2 decimal places.) PEG ratio 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

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

Essential Bookkeeping And Financial Accounting

Authors: Emile Woolf International

1st Edition

1848437552, 978-1848437555

More Books

Students also viewed these Accounting questions