Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Some recent financial statements for Smolira Golf, Inc., follow. SMOLIRA GOLF, INC. Balance Sheets as of December 31, 2009 and 2010 2009 2010 2009 2010
Some recent financial statements for Smolira Golf, Inc., follow. SMOLIRA GOLF, INC. Balance Sheets as of December 31, 2009 and 2010 2009 2010 2009 2010 Assets Liabilities and Owners Equity Current assets Current liabilities Cash $ 2,791 $ 2,607 Accounts payable $ 2,223 $ 2,740 Accounts receivable 4,697 5,641 Notes payable 1,820 2,256 Inventory 12,758 13,642 Other 104 121 Total $ 20,246 $ 21,890 Total $ 4,147 $ 5,117 Long-term debt $ 14,700 $ 17,460 Owners equity Common stock and paid-in surplus $ 45,000 $ 45,000 Fixed assets Accumulated retained earnings 15,724 40,134 Net plant and equipment 59,325 85,821 Total $ 60,724 $ 85,134 Total assets $ 79,571 $ 107,711 Total liabilities and owners equity $ 79,571 $ 107,711 SMOLIRA GOLF, INC. 2010 Income Statement Sales $ 190,170 Cost of goods sold 127,603 Depreciation 5,193 EBIT $ 57,374 Interest paid 1,290 Taxable income $ 56,084 Taxes 19,629 Net income $ 36,455 Dividends $ 12,045 Retained earnings 24,410 Smolira Golf has 12,000 shares of common stock outstanding, and the market price for a share of stock at the end of 2010 was $91. Requirement 1: What is the price-earnings ratio? (Round your answer to 2 decimal places (e.g., 32.16).) Price-earnings ratio Requirement 2: What is the price-sales ratio?(Round your answer to 2 decimal places (e.g., 32.16).) Price-sales ratio Requirement 3: What are the dividends per share? (Do not include the dollar sign ($). Round your answer to 2 decimal places (e.g., 32.16).) Dividends per share $ Requirement 4: What is the market-to-book ratio at the end of 2010? (Round your answer to 2 decimal places (e.g., 32.16).)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started