1. Compute earnings per share (EPS) for 2016 for Shines. Round to the nearest cent. 2. Compute...
Question:
2. Compute Shine€™s Companies€™ price/earnings ratio for 2016. The market price per share of Shine€™s stock is $65.50.
3. What do these results mean when evaluating Shine€™s Companies€™ profitability?
Shine€™s Companies, a home improvement store chain, reported the following summarized figures:
Transcribed Image Text:
SHINE'S COMPANIES Income Statement Years Ended May 31, 2016 and 2015 2016 2015 Net Sales Cost of Goods Sold Interest Expense Al Other Expenses Net Income 57.200,000 41.100,000 20,600000 29,300,000 030,000 6,900,000 8,400,000 $ 29,000,000 2,770,000 700,000 SHINE'S COMPANIES Balance Sheet May 31, 2016 and 2015 Assets Liabilities 2016 2,200,000 1,800000 lotal Current Liabilites 26,000,000 10.000,000 Long-term Uabilties 2016 24,030,U00 12yu0 13.400,000 0800,000 37,400,000 23,700,000 2015 2015 Cash Short-term Investments Accounts Receivable Merchandise Inventory Other Current Assets Total Current Assets All Other Assets Total Assets 7.200,000 400,000 Total Liablites 7,100,000 9,000,000 8,200,000 Stockholders' Equity 0000 Common Stock 13000,000 13,000,000 33,100,000 18,500,000 ,000 S 83,500,000 S 55,200,000 51,500,000 27,200,000 Retained Earnings 32,000,000 28,000,000 Total Equity 46,100,000 31,500 s 83,500,000 S 55,200,000! Total Liablites and Equity
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 71% (14 reviews)
Requirement 1 Requirement 2 Requirement 3 Shines Companies price earnings ratio for 2...View the full answer
Answered By
Bhartendu Goyal
Professional, Experienced, and Expert tutor who will provide speedy and to-the-point solutions. I have been teaching students for 5 years now in different subjects and it's truly been one of the most rewarding experiences of my life. I have also done one-to-one tutoring with 100+ students and help them achieve great subject knowledge. I have expertise in computer subjects like C++, C, Java, and Python programming and other computer Science related fields. Many of my student's parents message me that your lessons improved their children's grades and this is the best only thing you want as a tea...
3.00+
2+ Reviews
10+ Question Solved
Related Book For
Horngrens Financial and Managerial Accounting
ISBN: 978-0133866292
5th edition
Authors: Tracie L. Nobles, Brenda L. Mattison, Ella Mae Matsumura
Question Posted:
Students also viewed these Managerial Accounting questions
-
Round each monetary amount to the nearest cent or dollar as indicated. 1. $14,769.52, to the nearest dollar 2. $0.7633, to the nearest cent
-
Round to the nearest tenth, if necessary. 1. What percent of 110,736 is 88,542?
-
Seven years ago, after 15 years in public accounting, Stanley Booker, CPA, resigned his position as manager of cost systems for Davis, Cohen, and OBrien Public Accountants and started Track Software,...
-
Solar Energy Corp. has $4 million in earnings with four million shares outstanding. Investment bankers think the stock can justify a P/E ratio of 21. Assume the underwriting spread is 5 percent. What...
-
When the common law rules of contract were being formed by the judiciary, paper correspondence was the only form of distance communication. Are the traditional rules of contract formation appropriate...
-
Sheryl Sugarman owned 60 percent of the outstanding stock of Octavian Corp. The corporation sold stock (cost $5,000) to her for $2,500. Sheryl sold the stock for $7,000. What is the corporation's...
-
Water flows down the face of the dam shown in Fig. P4.43. The face of the dam consists of two circular arcs with radii of 10 and \(20 \mathrm{ft}\) as shown. If the speed of the water along...
-
Assume that you have converted part of an area of general office space into a server room. Describe the factors you would consider when planning for each of the following: a. Walls and doors. b....
-
How does extractive distillation differ from conventional distillation in terms of solvent selection, mechanism, and industrial applications? Provide examples where extractive distillation is...
-
You are a CPA who belongs to a downtown business club. Annual dues are $150. You use the club solely for lunches, which cost $9 each. You have not used the club much in recent years, and you are...
-
Caleb King is interested in investing in Orange Corporation. What types of tools should Caleb use to evaluate the company?
-
Vintage Millss income statement appears as follows (amounts in thousands): Use the following ratio data to complete Vintage Millss income statement: 1. Inventory turnover is 4.70 (beginning...
-
Harrisburg Furniture Company started construction of a combination office and warehouse building for its own use at an estimated cost of $5,000,000 on January 1, 2014. Harrisburg expected to complete...
-
The President (of the U.S.) has hired you to advise him/her on what 4 changes can be made to the commercial banking system to ensure that the FDIC does not become insolvent (again). What are your 4...
-
Discuss consumer behavior as it applies to external and internal influences on sport consumption. Define both concepts and explain your opinion on which of these two approaches has more influence on...
-
Construct a stem-and-leaf diagram for the given data. The attendance counts for this season's basketball games are listed below. 227 239 215 219 221 233 229 233 235 228 245 231 21 579 22 189 23 13359...
-
2. Suppose that there is a wave of pessimism in the economy due to Covid-19 and, as a result, the economy is operating below its natural level of output with high unemployment and low inflation. So,...
-
1 Consider the market for the Samsun Galaxy $22. Using a supply and demand graph show what happens to the price and quantity of Galaxy $22s if people expect the price of S22 to increase in the...
-
Consider steady flow of air through the diffuser portion of a wind tunnel (Fig. P422). Along the centerline of the diffuser, the air speed decreases from u entrance to u exit as sketched....
-
Derive Eq. (18.33) from Eq. (18.32).
-
An unmarried individual in California with a taxable income of about $80,000 has a federal incremental tax rate of 30% and a state incremental tax rate of 9.3%. What is his combined incremental tax...
-
The Lynch Bull investment company suggests that Steven Comstock, a wealthy New York City investor (his incremental income tax rate is 38.6%), consider the following investment. Buy corporate bonds on...
-
Albert Chan decided to buy an old duplex as an investment. After looking for several months, he found a desirable duplex that could be bought for $93,000 cash. He decided that he would rent both...
-
You are planning for retirement in 20 years and currently have $85,000 in a savings account and $25,000 in a mutual fund. Assuming your savings account returns 4% compounded semi-annually, while your...
-
An Italian company is expecting to receive Kuwait dinars in 9 months' time. The spot rate is Lire/dinar 5.467.Your Company could borrow in dinar at 9% per annum or in Lire at 14% per Annum No forward...
-
Gold coast organics has a total assets turnover of 2.5 and a net profit margin of 3.5 percent.the total debt ratio for the firm is 50 percent.calculate the gold coast organics return On equity.
Study smarter with the SolutionInn App