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Some recent financial statements for Smolira Golf Corporation follow. |
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SMOLIRA GOLF CORPORATION |
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2020 and 2021 Balance Sheets |
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Assets |
2020 |
2021 |
Liabilities and Owners’ Equity |
2020 |
2021 |
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Current assets |
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Current liabilities |
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Cash |
$ 34,485 |
$ 37,928 |
Accounts payable |
$ 36,712 |
$ 42,632 |
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Accounts receivable |
17,851 |
27,856 |
Notes payable |
19,108 |
16,275 |
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Inventory |
3,640 |
42,672 |
Other |
19,954 |
24,714 |
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Total |
$ 55,976 |
$ 108,456 |
Total |
$ 75,774 |
$ 83,621 |
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Long-term debt |
$ 115,500 |
$ 174,101 |
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Owners’ equity |
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Common stock and paid-in surplus |
$ 55,100 |
$ 55,100 |
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273,922 |
315,417 |
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Fixed assets |
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Net plant and equipment |
$ 464,320 |
$ 519,783 |
Total |
$ 329,022 |
$ 370,517 |
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Total assets |
$ 520,296 |
$ 628,239 |
Total liabilities and owners’ equity |
$ 520,296 |
$ 628,239 |
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SMOLIRA GOLF CORPORATION |
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2021 Income Statement |
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Sales |
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$ 506,954 |
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Cost of goods sold |
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359,678 |
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44,588 |
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Earnings before interest and taxes |
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$ 102,688 |
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Interest paid |
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19,783 |
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Taxable income |
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$ 82,905 |
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Taxes (21%) |
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17,410 |
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Net income |
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$ 65,495 |
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Dividends |
$ 24,000 |
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Retained earnings |
41,495 |
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Smolira Golf Corporation has 41,000 shares of common stock outstanding, and the market price for a share of stock at the end of 2021 was $27. |
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a. |
What is the price-earnings ratio? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) |
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b. |
What are the dividends per share? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) |
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c. |
What is the market-to-book ratio at the end of 2021? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) |
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d. |
If the company’s growth rate is 6 percent, what is the PEG ratio? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) |
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