Answered step by step
Verified Expert Solution
Question
1 Approved Answer
You are given the following information for Smashville, Inc. Cost of goods sold: $ 209,000 Investment income: $ 2,100 Net sales: $ 392,000 Operating expense:
You are given the following information for Smashville, Inc. |
Cost of goods sold: | $ | 209,000 | |
Investment income: | $ | 2,100 | |
Net sales: | $ | 392,000 | |
Operating expense: | $ | 90,000 | |
Interest expense: | $ | 7,400 | |
Dividends: | $ | 14,000 | |
Tax rate: | 35 | % | |
Current liabilities: | $ | 22,000 |
Cash: | $ | 21,000 |
Long-term debt: | $ | 27,000 |
Other assets: | $ | 37,000 |
Fixed assets: | $ | 128,000 |
Other liabilities: | $ | 5,000 |
Investments: | $ | 41,000 |
Operating assets: | $ | 35,000 |
During the year, Smashville, Inc., had 17,000 shares of stock outstanding and depreciation expense of $13,000. At the end of the year, Smashville stock sold for $47 per share. Calculate the price-book ratio, price-earnings ratio, and the price-cash flow ratio. (Do not round intermediate calculations. Round your answers to 2 decimal places.) |
Price-book ratio | |
Price-earnings ratio | |
Price-cash flow ratio | |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered 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