Ginyard Company has the following financial statements for the year ended Decemb
ID: 2328449 • Letter: G
Question
Ginyard Company has the following financial statements for the year ended December 31, 2016.
Balance Sheet
12/31/2016
Cash
$1,600,000
Accounts Receivable
3,000,000
Inventory
2,500,000
Current Assets
$7,100,000
Long-lived Assets
14,500,000
Total Assets
$21,600,000
Current Liabilities
$1,200,000
Long-term Debt
$2,400,000
Shareholder Equity
18,000,000
Total Debt and Equity
$21,600,000
Income Statement
For the year ended December 31,
2016
Sales
$20,000,000
Cost of Sales
15,000,000
Gross Margin
5,000,000
Operating Expenses
2,500,000
Operating Income
2,500,000
Taxes
1,000,000
Net Income
$1,500,000
Cash Flow From Operations
For the year ended December 31,
2016
Net Income
$1,500,000
Plus Depreciation Expense
1,000,000
+Decrease (-inc) in AccRec. and Inv.
-
+Increase (-dec) in Cur. Liabl.
-
Cash Flow from Operations
$2,500,000
Some additional information about 2016 includes:
Ginyard
Industry Data
Year End Stock Price
$23.00
Number of Outstanding Shares
1,800,000
Sales Multiplier
2.10
Free Cash Flow Multiplier
22.00
Earnings Multiplier
18.00
Cost of Capital
5.0%
Accounts Receivable Turnover
6.60
Inventory Turnover
5.80
Current Ratio
2.20
Quick Ratio
1.50
Cash Flow from Operations Ratio
1.50
Free Cash Flow Ratio
1.00
Gross Margin Percentage
30.0%
Return on Assets (Net Book Value)
18.0%
Return on Equity
22.0%
Training Expense
500,000
Income Tax Rate
40%
Depreciation Expense
1,000,000
Dividends
-
1. Complete a Balanced Scorecard for the Year Ended 12/31/16.
2. Calculate Earnings Per Share
Balance Sheet
12/31/2016
Cash
$1,600,000
Accounts Receivable
3,000,000
Inventory
2,500,000
Current Assets
$7,100,000
Long-lived Assets
14,500,000
Total Assets
$21,600,000
Current Liabilities
$1,200,000
Long-term Debt
$2,400,000
Shareholder Equity
18,000,000
Total Debt and Equity
$21,600,000
Income Statement
For the year ended December 31,
2016
Sales
$20,000,000
Cost of Sales
15,000,000
Gross Margin
5,000,000
Operating Expenses
2,500,000
Operating Income
2,500,000
Taxes
1,000,000
Net Income
$1,500,000
Cash Flow From Operations
For the year ended December 31,
2016
Net Income
$1,500,000
Plus Depreciation Expense
1,000,000
+Decrease (-inc) in AccRec. and Inv.
-
+Increase (-dec) in Cur. Liabl.
-
Cash Flow from Operations
$2,500,000
Explanation / Answer
2. Earning Per Share
=1500000/1800000
=0.83 per share
Balance Sheet
21600000
Particulars Amount (in $) Net Income 1500000 Average Number outstanding Share 1800000 Earing Per Share=1500000/1800000
=0.83 per share
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