1-The book value per share was approximately A-$1.40 B-$1.60 C-$1.52 D-$10.00 2-
ID: 2577339 • Letter: 1
Question
1-The book value per share was approximately
A-$1.40
B-$1.60
C-$1.52
D-$10.00
2-The return on assets was approximately
22.58%
17.21%
12.04%
D-16.41%
3-The return on equity was approximately
27.06%
31.53%
23.97%
D-19.80%
4-The current ratio was approximately
3.56
2.94
1.61
2.13
5-The Debt to Equity Ratio was approximately
44.43%
37.92%
46.55%
D-31.56 %
6-Assume the stock price was $ 5 per share and the EPS was $2. The Price Earnings Ratio was
26.32
2.50
4.23
D-9.01
7-Assume the stock price was $ 5 per share and the EPS was $2. The Earnings Yield was
26.32%
53.30%
40.00%
D-9.01%
8-The acid test ratio was approximately
3.56
2.94
1.61
2.13
A-22.58%
B-17.21%
C-12.04%
D-16.41%
3-The return on equity was approximately
A-27.06%
B-31.53%
C-23.97%
D-19.80%
4-The current ratio was approximately
A-3.56
B-2.94
C-1.61
D-2.13
5-The Debt to Equity Ratio was approximately
A-44.43%
B-37.92%
C-46.55%
D-31.56 %
6-Assume the stock price was $ 5 per share and the EPS was $2. The Price Earnings Ratio was
A-26.32
B-2.50
C-4.23
D-9.01
7-Assume the stock price was $ 5 per share and the EPS was $2. The Earnings Yield was
A-26.32%
B-53.30%
C-40.00%
D-9.01%
8-The acid test ratio was approximately
A-3.56
B-2.94
C-1.61
D-2.13
181 Below is not homework unless assigned by your instructor The following data is for Laurel's Lassos, inc.: Balance 12/31/16 Balance 1231/17 18,900 50,000 5,000 90,000 2.600 290,000 20,000 71,900 90,000 12,000 50,000 3.600 340,000 80,000 140,000 12,000 35,000 6,000 8,000 6.500 10,000 130.000 300,000 120,000 1,200,000 700,000 220,000 48,000 46,000 60,000 15,000 6,000 14,500 27,150 Cash Accounts Receivable Allowance for Doubtful Accounts Inventory Prepaid Insurance Equipment Accumulated Depreciation Land 10,000 30,000 10,000 4,000 7,500 5,000 160,000 150,000 70,000 Security Deposits Accounts Payable Wages Payable Rent Payable Interest Payable Taxes Payable Note Payable Common Stock (S1 each) Retained Earnings Sales Cost of Goods Sold Wage Expense Rent Expense Office Expenses Depreciation Expense Bad Debt Expense Insurance Expense Interest Expense Income Tax Expense The land was acquired on June 30, 2017 by exchanging 60,000 shares of common stock worth $60,000 and cash for the balance of the purchase price. purchase of the land) was sold on October 31, 2017 for $1 per share. The company did not sell any The additional common stock (other than that issued for the ipment during the year. All equipment purchased during the year was purchased for cash. The balance in retained earnings for each year is after all closing entries have been made. The Note Payable requires payments of $30,000 principal plus interest at 10% on June 30 of each year.Explanation / Answer
Ans 1 Book value per share 1.4 Stock holder equity/No. of common stock (300000+120000)/300000 Opyion A $1.4 ans 2 Return on asset 12.04 NET Income/Avg total assetc 63350/526000*100 Option c 12.04% working Calculation of Net Income Sales $1,200,000 Less: COGS 700000 Wage expenses 220000 Rent expenses 48000 Office expenses 46000 Depreciatione expenses 60000 Bad Debt Expenses 15000 Insurance expenses 6000 Interest expenses 14500 income tax expenses 27150 1136650 Net Income $63,350 Assets 2016 2017 Cash 18900 71900 Accounts Receivable 50000 90000 Allowance For doubtful debts -5000 -12000 inventory 90000 50000 prepaid Insurance 2600 3600 Equipment 290000 340000 Acc dep -20000 -80000 Land 140000 Security Deposits 10000 12000 avg assets Total assets 436500 615500 526000 ans 3 Return on equity 19.80 option D Net income/Avg stockholder equity 63350/320000*100 Avg stockholder equity (150000+70000+300000+120000)/2 320000 ans 4 2017 Cash 71900 Accounts Receivable 90000 Allowance For doubtful debts -12000 inventory 50000 prepaid Insurance 3600 Current assets 203500 Current ratio 2.13089 203500/(35000+6000+8000+6500+10000+30000) Option d 2.13 ans 5 Debt to equity ratio 0.4655 (35000+6000+8000+6500+10000+130000)/(300000+120000) Option c 46.55% ans 6 PE ratio 5/2 2.5 Option B 2.5
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