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Based on the Balance Sheet, Income Statement, Other Data, and Ratio Analysis provided, what is the Price/Cash Flow Ratio for 2017E?

Based on the Balance Sheet, Income Statement, Other Data, and Ratio Analysis provided, what is the Price/Cash Flow Ratio for 2017E?

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Based on the Balance Sheet, Income Statement, Other Data, and Ratio Analysis provided, what is the Price/Cash Flow Ratio for 2017E?

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Other Data 2015 2016 2017E Stock price Shares outstanding $8.50 $6.00 $12.17 100,000 100,000 250,000 EPS $0.880 $0.951 $1.014 DPS $0.220 $0.110 $0.220 Tax rate 40% 40% 40% Book value per share Lease payments $6.638 $5.576 $7.909 $40,000 $40,000 $40,000 Note: "E" denotes "estimated"; the 2017 data are forecasts. Ratio Analysis Industry Average 2015 2016 2017E Current 2.3 1.5 2.7 Quick 0.8 0.5 1.0 Inventory turnover Days sales outstanding Fixed assets turnover 4.0 4.0 6.1 37.3 39.6 32.0 10.0 6.2 7.0 Total assets turnover 2.3 2.0 2.5 Debt ratio 35.6% 59.6% 32.0% Liabilities-to-assets ratio 54.8% 80.7% 50.0% TIE 3.3 0.1 6.2 EBITDA coverage Profit margin Basic earning power 2.6 0.8 8.0 2.6% -1.6% 3.6% 14.2% 0.6% 17.8% ROA 6.0% -3.3% 9.0% ROE 13.3% -17.1% 17.9% Price/Earnings (P/E) Price/Cash flow 9.7 -6.3 16.2 8.0 27.5 7.6 Market/Book 1.3 1.1 2.9 Note: "E" denotes "estimated."
Transcribed Image Text:Other Data 2015 2016 2017E Stock price Shares outstanding $8.50 $6.00 $12.17 100,000 100,000 250,000 EPS $0.880 $0.951 $1.014 DPS $0.220 $0.110 $0.220 Tax rate 40% 40% 40% Book value per share Lease payments $6.638 $5.576 $7.909 $40,000 $40,000 $40,000 Note: "E" denotes "estimated"; the 2017 data are forecasts. Ratio Analysis Industry Average 2015 2016 2017E Current 2.3 1.5 2.7 Quick 0.8 0.5 1.0 Inventory turnover Days sales outstanding Fixed assets turnover 4.0 4.0 6.1 37.3 39.6 32.0 10.0 6.2 7.0 Total assets turnover 2.3 2.0 2.5 Debt ratio 35.6% 59.6% 32.0% Liabilities-to-assets ratio 54.8% 80.7% 50.0% TIE 3.3 0.1 6.2 EBITDA coverage Profit margin Basic earning power 2.6 0.8 8.0 2.6% -1.6% 3.6% 14.2% 0.6% 17.8% ROA 6.0% -3.3% 9.0% ROE 13.3% -17.1% 17.9% Price/Earnings (P/E) Price/Cash flow 9.7 -6.3 16.2 8.0 27.5 7.6 Market/Book 1.3 1.1 2.9 Note: "E" denotes "estimated."
****. .. Balance Sheets 2015 2016 2017E Assets Cash 2$ 9,000 $ 7,282 14,000 Short-term investments 48,600 20,000 71,632 Accounts receivable 351,200 632,160 878,000 1,716,480 $2,680,112 1,220,000 Inventories 715,200 1,287,360 $1,946,802 Total current assets Gross fixed assets $1,124,000 491,000 1,202,950 Less: Accumulated depreciation 146,200 $ 344,800 263,160 $ 939,790 m $ 836,840 $3,516,952 383,160 Net fixed assets Total assets $1,468,800 $2,886,592 Liabilities and Equity Accounts payable Notes payable Accruals Total current liabilities 2015 2016 2017E $ 145,600 $ 324,000 $ 359,800 200,000 720,000 300.000 380,000 136,000 $ 481,600 284,960 $1,328,960 $1,039,800 Long-term debt Common stock (100,000 shares) Retained earnings Total equity Total liabilities and equity 323,432 1,000,000 500,000 460,000 460,000 1,680,936 203,768 $ 663,768 $1,468,800 97,632 $ 557,632 296,216 $1,977,152 $2,886,592 $3,516,952 Note: "E denotes "estimated"; the 2017 data ure forecasts. Income Statements 2015 2016 2017E Sales $3,432,000 $5,834,400 $7,035,600 5,800,000 Cost of goods sold except depr. Depreciation and amortization Other expenses Total operating costs 2,864,000 4,980,000 18,900 116,960 720,000 $5,816,960 120,000 612,960 $6,532,960 $ 502,640 80,000 $ 422,640 169,056 $ 253,584 340,000 $3,222,900 EBIT $ 209,100 17,440. Interest expense 176,000 ($ 158,560) 62,500 $ 146,600 Pre-tax earnings Taxes (40%) Net income 58,640 (63,424) $ 87,960 ($. 95,136) Note "E" denotes "estimated"; the 2017 dats are forecasts.
Transcribed Image Text:****. .. Balance Sheets 2015 2016 2017E Assets Cash 2$ 9,000 $ 7,282 14,000 Short-term investments 48,600 20,000 71,632 Accounts receivable 351,200 632,160 878,000 1,716,480 $2,680,112 1,220,000 Inventories 715,200 1,287,360 $1,946,802 Total current assets Gross fixed assets $1,124,000 491,000 1,202,950 Less: Accumulated depreciation 146,200 $ 344,800 263,160 $ 939,790 m $ 836,840 $3,516,952 383,160 Net fixed assets Total assets $1,468,800 $2,886,592 Liabilities and Equity Accounts payable Notes payable Accruals Total current liabilities 2015 2016 2017E $ 145,600 $ 324,000 $ 359,800 200,000 720,000 300.000 380,000 136,000 $ 481,600 284,960 $1,328,960 $1,039,800 Long-term debt Common stock (100,000 shares) Retained earnings Total equity Total liabilities and equity 323,432 1,000,000 500,000 460,000 460,000 1,680,936 203,768 $ 663,768 $1,468,800 97,632 $ 557,632 296,216 $1,977,152 $2,886,592 $3,516,952 Note: "E denotes "estimated"; the 2017 data ure forecasts. Income Statements 2015 2016 2017E Sales $3,432,000 $5,834,400 $7,035,600 5,800,000 Cost of goods sold except depr. Depreciation and amortization Other expenses Total operating costs 2,864,000 4,980,000 18,900 116,960 720,000 $5,816,960 120,000 612,960 $6,532,960 $ 502,640 80,000 $ 422,640 169,056 $ 253,584 340,000 $3,222,900 EBIT $ 209,100 17,440. Interest expense 176,000 ($ 158,560) 62,500 $ 146,600 Pre-tax earnings Taxes (40%) Net income 58,640 (63,424) $ 87,960 ($. 95,136) Note "E" denotes "estimated"; the 2017 dats are forecasts.
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