Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Some recent financial statements for Smolira Golf, Inc., follow. SMOLIRA GOLF, INC. Balance Sheets as of December 31, 2018 and 2019 2018 2019 2018 2019

image text in transcribed
image text in transcribed
Some recent financial statements for Smolira Golf, Inc., follow. SMOLIRA GOLF, INC. Balance Sheets as of December 31, 2018 and 2019 2018 2019 2018 2019 Assets Liabilities and Owners' Equity Current assets Current liabilities Cash $ 2,941 $ 2,857 Accounts payable $ 2,198 $ 2,690 Accounts receivable 4,722 5,691 Notes payable 1,795 2,206 Inventory 12,658 13,692 Other 99 116 Total $20,321 $22,240 Total $ 4,092 $ 5,012 Long-term debt $ 14,200 $16,960 Owners' equity Common stock 42,500 and paid-in surplus $42,500 $ Accumulated retained 39,769 Fixed assets 15,699 earnings 82,269 Net plant and $56,170 $ 82,001 Total $ 58,199 $ equipment 104,241 Total liabilities and owners' $ 76,491 $ Total assets $76,491 $104,241 equity SMOLIRA GOLF, INC 2019 Income Statement Sales $189,170 Cost of goods sold 127103 Depreciation 5,243 $56,824 Interest paid 1340 EBIT Next Prev 9 of 10 Interest paid $ 56,824 1,340 Taxable income Taxes $55,484 19,419 Net income $36,065 Dividends Retained earnings $ 11,995 24,070 Smolira Golf has 11,000 shares of common stock outstanding, and the market price for a share of stock at the end of 2019 was $86. a. What is the price-earnings ratio? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. What is the price-sales ratio? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) c. What are the dividends per share? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) d. What is the market-to-book ratio at the end of 2019? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) times times a. Price-earnings ratio b. Price-sales ratio Dividends per share d. Market-to-book ratio C. 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

Personal Finance

Authors: Megan Noel, Dan French

2nd Edition

1465246479, 9781465246479

More Books

Students also viewed these Finance questions

Question

4.3 Identify and explain the seven nonverbal communication codes.

Answered: 1 week ago

Question

6.66 Find zo such that P(-zo

Answered: 1 week ago