Some recent financial statements for Smolira Golf Corp. follow SMOLIRA GOLF CORP

Question

Some recent financial statements for Smolira Golf Corp. follow SMOLIRA GOLF CORP 2014 and 2015 Balance Sheets Assets Liabilities and Owners Equity 2014 2015 2014 2015 Current assets Current liabilities Accounts payable Notes payable 23,284 27200 10,900 s 24.200 s 24.056 12.548 25,592 Cash Accounts 12,000 15.300 receivable 27200 Other 15,900 11,671 Inventory S46,955 54,000 s 90,000 $103,000 Common stock and paid-in s 42,000 42000 233,000 Total s 62,196 66,700 Total Long-term debt Owners equity surplus Accumulated retained earnings 208.936 Fixed assets Net plant and equipment 325695 $365,300 Total $250,936 $275,000 owners 387891 $432.000 Total assets S 387891$432000 Total liabilities and

Explanation / Answer

1. Total net income = $45,064

No. of shares outstanding = 15,000

Net income per share = Total net income divided by No. of shares outstanding

Net income per share = $45,064 / 15,000 = $1.80

Price per share = $52

P/E ratio = Price per share / Net income per share

P/E ratio = $52 / $1.80 = 28.85 times

2. Total dividends = $21,000

No. of shares outstanding = 25,000

Dividend per share = Total dividends divided by No. of shares outstanding

Dividend per share = $21,000 / 25,000 = $0.84

3.

Book Value = $275,000

Book Value per share = $275,000 / 25,000 = $11

Market Price per share = $52

Market to Book ratio = Market price per share divided by Book Value per share

Market to Book ratio = $52 / $11 = 4.73 times

4.

PEG Ratio = PE ratio divided by Growth rate

PEG Ratio = 28.85 / 10 = 2.88 times

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