In business terms the word buy is equivalent to the word

As a stockholder in Bozo Oil Company, you receive its annual report. In the financial statements, the firm has reported assets o

fgiga [73]

Answer:

See below

Explanation:

a. Earnings per share

= After tax earnings / Number of common shares outstanding

= $3,000,000 / 761,000

= $3.9 per share

b. Assuming that a share of Bozo Oil's company has a market value of $40, then, the firm's price earning ratio would be:

= Common stock market value / Earnings per share

= $40 / $3.9

= 10.26

c. The book value of a share of Bozo Oil's common stock

Book value = (Assets - Liabilities) / Number of shares outstanding

= ($15,000,000 - $9,000,000) / 761,000

= $6,000,000 / 751,000

= $7.88

7 0

3 years ago

Farmer Fanny sells her crops in a perfectly competitive market. If she produces 500 bushels for total revenue of $3,000 and if h

PolarNik [594]

Answer:

E) profit will fall by $4.00 if she harvests the 501" bushel.

Explanation:

Please see attachment

Download pdf

3 0

3 years ago

If consumer wealth decreases as the stock market plunges, then (3 points) there is a movement down the AD curve as price level d

tekilochka [14]

Answer:

AD shifts left and price level would decrease.

Explanation:

If consumer wealth decreases due to a plunge in the stock market, the AD curve will shift to the left. This is because shifts to the left of the AD curve represent a reduction in demand, and if consumers are poorer, they will naturally decrease their demand.

This will in turn reduce the price level, because in a market system, prices will fall until they meet the new, lower demand, meaning that a new equilibrium price is reached.

3 0

3 years ago

Additional information: The net cash provided by operating activities for 2017 was $190,800. The cash used for capital expenditu

Studentka2010 [4]

-- missing information--

Balance Sheet

December 31, 2017

Assets

Current assets

Cash 60,100

Debt investments 84,000

Accounts receivable (net) 169,800

Inventory 145,000

Total current assets 458,900

Plant assets (net) 575,300

Total assets 1,034,200

Liabilities and Stockholders’ Equity

Current liabilities

Accounts payable 160,000

Income taxes payable 35,500

Total current liabilities 195,500

Bonds payable 200,000

Total liabilities 395,500

Stockholders’ equity

Common stock 350,000

Retained earnings 288,700

Total stockholders’ equity 638,700

Total liabilities and stockholders’ equity $1,034,200

Income Statement

For the Year Ended December 31, 2017

Net sales $2,218,500

Cost of goods sold 1,012,400

Selling and administrative expenses 906,000

Interest expense 78,000

Income tax expense 69,000

Net income $ 153,100

Answer:

(i) Working capital. $ 263,400

(ii) Current ratio 2.35

(iii) Free cash flow. $ 98,800

(iv) Debt to assets ratio. 38.2%

(v) Earnings per share. $ 3.062

Explanation:

(i) Working capital.

Current Assets - Current Liabilities:

458,900 - 195,500 = 263,400

(ii) Current ratio

Current Assets / Current Laibilities

458,900 / 195,500 = 2.35

(iii) Free cash flow.

cash from operations less cash used for capital expenditures

190,800 - 92,000 = 98,800

(iv) Debt to assets ratio.

Liaiblities / Assets

395,500 / 1,034,200 = 0.382421195

(v) Earnings per share.

net income / average shares outstanding

$ 153,100 / 50,000 = 3.062

7 0

3 years ago

What is the effect of declaring a stock dividend on the liabilities and stockholders' equity section of the balance sheet? a.A d

kati45 [8]

Answer:

An increase in total liabilities and a decrease in stockholders' equity

Explanation:

When a dividend is declared but not ye paid, it is credited as current liability because it has increased the company liability while retained earnings is being Debited because of the profit distribution.

When it is eventually paid, cash account is credited while dividend liability account is debited.

8 0

3 years ago