Question
You are given the following information for Smashville, Inc. Cost of goods sold: $ 214,000 Investment income: $ 2,200 Net sales: $ 328,000 Operating expense:
You are given the following information for Smashville, Inc.
Cost of goods sold: $ 214,000
Investment income: $ 2,200
Net sales: $ 328,000
Operating expense: $ 45,000
Interest expense: $ 7,400
Dividends: $ 8,000
Tax rate: 30 %
Current liabilities: $ 16,000
Cash: $ 21,000
Long-term debt: $ 26,000
Other assets: $ 38,000
Fixed assets: $ 156,000
Other liabilities: $ 5,000
Investments: $ 42,000
Operating assets: $ 35,000
During the year, Smashville, Inc., had 17,000 shares of stock outstanding and depreciation expense of $14,000. At the end of the year, Smashville stock sold for $51 per share. Calculate the price-book ratio, price-earnings ratio, and the price-cash flow ratio.
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