Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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 $ 24,246 $ 26,100 Accounts payable $ 25,184 $ 29,100
Accounts receivable 14,448 17,200 Notes payable 20,000 12,800
Inventory 27,992 29,100 Other 13,571 18,100
Total $ 66,686 $ 72,400 Total $ 58,755 $ 60,000
Long-term debt $ 89,000 $ 101,000
Owners equity
Common stock and paid-in surplus $ 50,000 $ 50,000
Accumulated retained earnings 213,626 226,000
Fixed assets
Net plant and equipment $ 344,695 $ 364,600 Total $ 263,626 $ 276,000
Total assets $ 411,381 $ 437,000 Total liabilities and owners equity $ 411,381 $ 437,000

SMOLIRA GOLF CORP. 2015 Income Statement
Sales $ 360,968
Cost of goods sold 262,500
Depreciation 29,200
Earnings before interest and taxes $ 69,268
Interest paid 16,300
Taxable income $ 52,968
Taxes (20%) 10,594
Net income $ 42,374
Dividends $ 30,000
Retained earnings 12,374

Smolira Golf Corp. has 40,000 shares of common stock outstanding, and the market price for a share of stock at the end of 2015 was $30.

What is the price-earnings ratio? (Do not round intermediate calculations and round your final answer to 2 decimal places, e.g., 32.16.)

Price-earnings ratio

times

What are the dividends per share? (Round your answer to 2 decimal places, e.g., 32.16.)

Dividends

per share

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

New Venture Creation A Framework For Entrepreneurial Start-ups

Authors: Paul Burns

2nd Edition

1352000504, 978-1352000504

More Books

Students also viewed these Finance questions

Question

=+b) Obtain a forecast for the week of May 28, 2007.

Answered: 1 week ago

Question

Draw a labelled diagram of the Dicot stem.

Answered: 1 week ago

Question

3. What is my goal?

Answered: 1 week ago

Question

2. I try to be as logical as possible

Answered: 1 week ago