2017 and 2018 Balance Sheets Assets 2017 Liabilities and Owners\' Equity 2018 20

Question

2017 and 2018 Balance Sheets Assets 2017 Liabilities and Owners' Equity 2018 2017 2018 Current assets Current liabilities ccounts$ 37852 $ 42,932 19,708 16,725 20,494 25,194 $78,054 $ 84,851 Long-term debt$ 118,500 $ 181,793 Cash $ 35.085 $ 38,480 payable 28,396 Notes Inventory 3,820 42,912 Other Total Accounts 18151 receivable payable Total $ 57,056 109,788 Owners' equity Common stock and paid- $ 55,700 $ 55,700 in surplus Accumulated retained earnings 269,812 308,127 Fixed assets Net plant and equipment $465,010 $520,683 Total $325,512 $363,827 Total liabilities Total assets $522,066 $ 630,471 and owners' $522,066 $ 630,471 equity SMOLIRA GOLF CORP 2018 Income Statement $509,954 361,778 45,338 Sales Cost of Depreciation Earnings goods sold before interest and taxes 102,838 20,383 $ 82,455 Interest paid Taxable Taxes (22%) Net income income 18140 64,315 Dividends $26,000 Retained 38,315 earnings

Explanation / Answer

a) Price Earning Ratio

Price Earning Ratio = Market Value per Share / Earnings per Share

Earnings per Share = Earnings available to Equity shareholders / Shares outstanding

= 64315/47000

= 1.37

Price Earning Ratio = 29/1.37

= 21.17

b) Dividend per share

Dividend per share = Total Dividend / Shares outstanding

= 26000/47000

=.55

c) Market to book ratio

Market to book ratio = Market Capitalization / Total Book Value

= Share Price / Net Book Value per share

Net Book Value per share = Shareholder's Equity / Shares outstanding

= 363827/47000

= 7.741

Market to book ratio = 29/7.741

= 3.75

d) PEG Ratio

PEG ratio = P/E ratio / earnings growth rate

= 21.17 / 8

= 2.65

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