Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Tamarisk Inc. went public 3 years ago. The board of directors will be meeting shortly after the end of the year to decide on a

Tamarisk Inc. went public 3 years ago. The board of directors will be meeting shortly after the end of the year to decide on a dividend policy. In the past, growth has been financed primarily through the retention of earnings. A stock or a cash dividend has never been declared. Presented below is a brief financial summary of Tamarisk Inc. operations.

($000 omitted)

2021

2020

2019

2018

2017

Sales revenue $19,960 $16,130 $13,930 $5,990 $3,970
Net income 2,400 1,410 800 710 250
Average total assets 21,940 19,160 11,590 4,180 3,000
Current assets 8,040 5,940 3,000 1,200 1,000
Working capital 3,610 3,230 1,220 500 400
Common shares:
Number of shares outstanding (000) 2,000 2,000 2,000 20 20
Average market price $9 $6 $4

Compute the return on assets, profit margin on sales, earnings per share, price-earnings ratio, and current ratio for each of the 5 years for Tamarisk Inc. (Round answers to 2 decimal places, e.g. 2.25 or 2.25%.)

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_2

Step: 3

blur-text-image_3

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

Intermediate accounting

Authors: J. David Spiceland, James Sepe, Mark Nelson

7th edition

978-0077614041, 9780077446475, 77614046, 007744647X, 77647092, 978-0077647094

More Books

Students also viewed these Accounting questions

Question

explain company-wide strategic planning and its four steps pg101

Answered: 1 week ago