I need to find: ROI (IA = 18%) EPS ( IA=$4) P/E RATIO (IA =10) Beginning Invento
ID: 2510430 • Letter: I
Question
I need to find:
ROI (IA = 18%)
EPS ( IA=$4)
P/E RATIO (IA =10)
Beginning Inventory $100,000 Ending Inventory $120,000 Cost of Goods Sold $210,000 Cash = $100,000 Beginning A/R $200,000 Ending A/R $160,000 A/P $110,000 Notes Payable $200,000 Bonds Payable $500,000 Net Sales $2,000,000 Total Liabilities $2,000,000 Total Stockholders Equity $4,000,000 Net Income = $1,000,000 Net Income Before Income Tax = $800,000 Interest Expense $30,000 Interest Portion of Leases - $40,000 Income Tax Rate-20% Total Assets = $6,000,000 Preferred Dividends $100,000 Average Common Shares - 1,000,000 Market Price Per Share $5Explanation / Answer
Return on investment (ROI) measures the gain or loss generated on an investment relative to the amount of money invested. ROI is usually expressed as a percentage and is typically used for personal financial decisions, to compare a company's profitability or to compare the efficiency of different investments.
PE Ratio=0.108
The price-earnings ratio indicates the dollar amount an investor can expect to invest in a company in order to receive one dollar of that company's earnings. This is why the P/E is sometimes referred to as the price multiple because it shows how much investors are willing to pay per dollar of earnings.
ROI= Net profit after interest and tax/ Total assets ROI=(8,00,000(1-20%))/60,00,000 ROI=11%