Can you please show the process for each one Income Statement Net sales COGS Dep
ID: 2332492 • Letter: C
Question
Can you please show the process for each one
Income Statement Net sales COGS Depreciation For the Year $827,500 611,800 23,100 EBIT Interest $192,600 9,700 Taxable income Taxes $182,900 6,200 Net income 176,700 ance Cash Accounts receivable Inventory Net fixed assets Beginning of Yea 38,200 91,400 203,900 516,100 End of Year $43,700 86,150 214,600 537,950 Total assets 849,600 $882,400 Accounts Long-term debt Common stock (S1 par value) Retained earnings $136,100 329,500 75,000 309,000 104,300 298,200 82,000 397,900 payable Total Liah, & Equity $849,600 882,400 What is the price-sales ratio if the market price is $43.20 per share? (Use end-of-year values) A. 2.43 B. 3.92 C. 3.67 D. 4.28 E. 4.51Explanation / Answer
Answer 1 Price to sales ratio is a valuation ratio that compares company's stock price to its revenues. Price sales ratio = Market price per share / Sales per share Market price per share = $43.20 Sales per share = Sales / No.of shares outstanding = $827500 / 82000 shares = $10.09 Price sales ratio = $43.20 / $10.09 = 4.28 The answer is Option D. Answer 2 Calculation of dividend paid Beginning Retained Earnings $309,000.00 Add : Net Income $176,700.00 Less : End of Year Retained Earnings $397,900.00 Dividend paid $87,800.00 Answer 3 Cash flow from Investment activities Beginning net fixed assets $516,100.00 Less : Depreciation $23,100.00 Less : End of Year net fixed assets $537,950.00 Cash flow from Investment activities -$44,950.00 Answer 4 Net working capital to total assets ratio = Net working capital at year end / Total assets at year end Net working capital at year end = Current assets - Current liabilities = $3,44,450 - $1,04,300 = $2,40,150 Net working capital to total assets ratio = $2,40,150 / $8,82,400 = 27.22% The answer is Option C. Answer 5 Net cash flow to stockholders = Issue of stock + dividend paid Net cash flow to stockholders = $7000 - $87,800 = -$80,800 Answer 6 There is decrease in Accounts payable by $31,800. Decrease in accounts payable involves use of cash. Hence the answer is Option E.