Suppose you work for a large coffee distributor that has a secret coffee blend it sells to local stores. You mix the Kenya blend
1 answer:
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Answer:
a) <em>Earnings Per Share for 20X2 = 2.19</em>
<em>P/E ratio for 20X2 = 19.22</em>
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<em>b) Earnings Per Share for 20X3 = 1.04</em>
<em>P/E ratio for 20X3 = 27.21</em>
Explanation:
a) Compute earnings per share and the P/E ratio for 20X2.
The compute the earnings per share use the following:
Earnings Per Share for 20X2 = (Earnings after tax-Preference Dividend) / shares outstanding
Earnings Per Share for 20X2 = 2.19
Then find P/E ratio:
P/E ratio for 20X2 = Market Price per share / Earnings Per Share
P/E ratio for 20X2 = 19.22
b) Compute earnings per share and the P/E ratio for 20X3.
The compute the earnings per share use the following:
Earnings Per Share for 20X3 =(Earnings after tax-Preference Dividend) / shares outstanding
Earnings Per Share for 20X3 = 1.04
Then find P/E ratio:
P/E ratio for 20X3 = Market Price per share / Earnings Per Share
P/E ratio for 20X3 = 27.21
Answer:
net cash flow 26,800
Explanation:
NOTE: missing information attached.
Operating
net income 104,000
removal of non-monetary terms
depreciation expense 37,000
loss on sale of land 9,000
adjusted net income 150,000
<u>Changes in working capital:</u>
Increase in AR (22,000)
Decrease in Inventory 40,000
Prepaid increase (7,200)
Decrease in AP (16,000)
decrease interest paayble (5,000)
increase in tax payable 1,000
net change in working capital (9,200)
net cash generated from operating 140,800
investing
sale of land 31,000
purchase of debt securities (115,000)
cash used in investing activities 84,000
financing
cash dividends (30,000)
cash used in financing activites 30,000
net cash flow 26,800
beginning cash 227,800
ending cash 254,600
