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FINANCIAL STATEMENT ANALYSIS AND RATIO ANALYSIS The following are the balance sheet and income statement data of PRT Com...


FINANCIAL STATEMENT ANALYSIS AND RATIO ANALYSIS The following are the balance sheet and income statement data of PRT Company: December 31 1998 1997 Balance Sheet Accounts Cash Marketable Securities P30,000 P52,000 170,000 200,000 100,000 200,000 150,000 100,000 Accounts Receivable, net Inventories 340,000 300,000 Machinery and Equipment, net Land and Building, net Goodwill 110,000 100,000 80,000 80,000 20,000 18,000 20,000 30,000 Deferred Charges Notes Payable, Trade Accounts Payable, Trade Expenses Payable 122,000 158,000 8,000 12,000 500,000 450,000 Long-term Notes-Due 2008 15% Preferred Stock, P100 par 100,000 100,000 Common Stock, P10 par 200,000 200,000 Retained Earnings 50,000 100,000 1998 Income Statement Accounts Sales P1,050,000 50,000 100,000 Sales Returns and Allowances Inventory, December 31, 1998 Inventory, December 31, 1997 Purchases 150,000 550,000 Selling Expenses 80,000 Administrative Expenses (including depreciation of P25,000) 120,000 Interest on Long-term Notes Income Taxes, 35% 50,000 52,500 Additional Information: 1. Dividends paid on preferred stock 15,000 2. Dividends paid on common stock 32,500 18 3. Market price per share of common stock 7. Evaluate the firm's profitability for 1998 by computing: a. Return on Common Stockholder's Equity b. Earnings Per Share (EPS) c. Price-earnings Ratio d. Pay-out Ratio to Common Shares e. Dividend Yield Per Share on Common Stock
Transcribed: FINANCIAL STATEMENT ANALYSIS AND RATIO ANALYSIS The following are the balance sheet and income statement data of PRT Company: December 31 Balance Sheet Accounts 1997 1998 Cash P30,000 P52,000 Marketable Securities 170,000 200,000 Accounts Receivable, net 100,000 200,000 Inventories 150,000 100,000 Machinery and Equipment, net 340,000 300,000 110,000 100,000 Land and Building, net Goodwill 80,000 80,000 Deferred Charges 20,000 18,000 Notes Payable, Trade 20,000 30,000 122,000 158,000 Accounts Payable, Trade Expenses Payable 12,000 8,000 500,000 Long-term Notes-Due 2008 450,000 100,000 100,000 15% Preferred Stock, P100 par Common Stock, P10 par Retained Earnings 200,000 200,000 50,000 100,000 1998 Income Statement Accounts Sales P1,050,000 Sales Returns and Allowances 50,000 100,000 Inventory, December 31, 1998 Inventory, December 31, 1997 150,000 Purchases 550,000 Selling Expenses 80,000 120,000 Administrative Expenses (including depreciation of P25,000) Interest on Long-term Notes 50,000 Income Taxes, 35% 52,500 Additional Information: 1. Dividends paid on preferred stock 15,000 32,500 2. Dividends paid on common stock 3. Market price per share of common stock 18 7. Evaluate the firm's profitability for 1998 by computing: a. Return on Common Stockholder's Equity b. Earnings Per Share (EPS) c. Price-earnings Ratio d. Pay-out Ratio to Common Shares e. Dividend Yield Per Share on Common Stock 7

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Ratio Analysis -

The ratio is the technique used by the prospective investor or an individual or strategist to read the company information in more detailed end accurate ways.

Ratio immediately recog...

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