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Some recent financial statements for Smolira Golf Corp. follow. SMOLIRA GOLF CORP. 2014 and 2015 Balance Sheets Assets Liabilities and Owners Equity 2014 2015 2014
Some recent financial statements for Smolira Golf Corp. follow. |
SMOLIRA GOLF CORP. 2014 and 2015 Balance Sheets | ||||||||||||||||
Assets | Liabilities and Owners Equity | |||||||||||||||
2014 | 2015 | 2014 | 2015 | |||||||||||||
Current assets | Current liabilities | |||||||||||||||
Cash | $ | 24,066 | $ | 24,300 | Accounts payable | $ | 23,384 | $ | 27,300 | |||||||
Accounts receivable | 12,648 | 15,400 | Notes payable | 13,000 | 11,000 | |||||||||||
Inventory | 25,642 | 27,300 | Other | 11,771 | 16,700 | |||||||||||
Total | $ | 62,356 | $ | 67,000 | Total | $ | 48,155 | $ | 55,000 | |||||||
Long-term debt | $ | 71,000 | $ | 82,000 | ||||||||||||
Owners equity | ||||||||||||||||
Common stock and paid-in surplus | $ | 42,000 | $ | 42,000 | ||||||||||||
Accumulated retained earnings | 227,896 | 250,000 | ||||||||||||||
Fixed assets | ||||||||||||||||
Net plant and equipment | $ | 326,695 | $ | 362,000 | Total | $ | 269,896 | $ | 292,000 | |||||||
Total assets | $ | 389,051 | $ | 429,000 | Total liabilities and owners equity | $ | 389,051 | $ | 429,000 | |||||||
SMOLIRA GOLF CORP. 2015 Income Statement | |||||||
Sales | $ | 369,630 | |||||
Cost of goods sold | 253,500 | ||||||
Depreciation | 46,500 | ||||||
Earnings before interest and taxes | $ | 69,630 | |||||
Interest paid | 14,500 | ||||||
Taxable income | $ | 55,130 | |||||
Taxes (20%) | 11,026 | ||||||
Net income | $ | 44,104 | |||||
Dividends | $ | 22,000 | |||||
Retained earnings | 22,104 | ||||||
Smolira Golf Corp. has 20,000 shares of common stock outstanding, and the market price for a share of stock at the end of 2015 was $35. |
1. What is the market-to-book ratio at the end of 2015? (Round your answer to 2 decimal places, e.g., 32.16.) |
Market-to-book ratio | times |
2.
If the companys growth rate is 9 percent, what is the PEG ratio? (Do not round intermediate calculations and round your final answer to 2 decimal places, e.g., 32.16.) |
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