Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

You are given the following information for Smashville, Inc. Cost of goods sold: $ 204,000 Investment income: $ 2,000 Net sales: $ 369,000 Operating expense:

You are given the following information for Smashville, Inc.

Cost of goods sold: $ 204,000
Investment income: $ 2,000
Net sales: $ 369,000
Operating expense: $ 80,000
Interest expense: $ 7,400
Dividends: $ 10,000
Tax rate: 40 %

Current liabilities: $ 16,000
Cash: $ 21,000
Long-term debt: $ 28,000
Other assets: $ 36,000
Fixed assets: $ 163,000
Other liabilities: $ 5,000
Investments: $ 40,000
Operating assets: $ 35,000

During the year, Smashville, Inc., had 17,000 shares of stock outstanding and depreciation expense of $12,000. At the end of the year, Smashville stock sold for $46 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

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

The Essentials Of Machine Learning In Finance And Accounting

Authors: Mohammad Zoynul Abedin, M. Kabir Hassan, Petr Hajek, Mohammed Mohi Uddin

1st Edition

0367480816, 978-0367480813

More Books

Students also viewed these Finance questions

Question

What is one of the skills required for independent learning?Explain

Answered: 1 week ago