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, 2015 and 2016 2015 2016 2015 2016

Some recent financial statements for Smolira Golf, Inc., follow.

SMOLIRA GOLF, INC. Balance Sheets as of December 31, 2015 and 2016
2015 2016 2015 2016
Assets Liabilities and Owners Equity
Current assets Current liabilities
Cash $ 3,251 $ 3,407 Accounts payable $ 2,143 $ 2,580
Accounts receivable 4,777 5,801 Notes payable 1,740 2,096
Inventory 12,438 13,802 Other 88 105
Total $ 20,466 $ 23,010 Total $ 3,971 $ 4,781
Long-term debt $ 13,600 $ 16,360
Owners equity
Common stock and paid-in surplus $ 37,000 $ 37,000
Fixed assets Accumulated retained earnings 15,644 38,966
Net plant and equipment $ 49,749 $ 74,097 Total $ 52,644 $ 75,966
Total assets $ 70,215 $ 97,107 Total liabilities and owners equity $ 70,215 $ 97,107

SMOLIRA GOLF, INC. 2016 Income Statement
Sales $ 186,970
Cost of goods sold 126,003
Depreciation 5,353
EBIT $ 55,614
Interest paid 1,450
Taxable income $ 54,164
Taxes 18,957
Net income $ 35,207
Dividends $ 11,885
Retained earnings 23,322

Smolira Golf has 12,000 shares of common stock outstanding, and the market price for a share of stock at the end of 2016 was $75. What is the priceearnings ratio? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Priceearnings ratio times What is the pricesales ratio? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Pricesales ratio times What are the dividends per share? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Dividends per share $ What is the market-to-book ratio at the end of 2016? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Market-to-book ratio times

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered 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

Students also viewed these Finance questions