Question: Bastion Computer Corp., a technology support company providing security for small businesses, reported these summarized figures (in millions): Bastion Computer Corp. Income Statement For the
Bastion Computer Corp., a technology support company providing security for small businesses, reported these summarized figures (in millions):
| Bastion Computer Corp. | |
| Income Statement | |
| For the Year Ended December 31, 2020 | |
| Net sales | $61.60 |
| Cost of goods sold | 42.4 |
| Interest expense | 0.6 |
| All other expenses | 15 |
| Net income | $3.60 |
| Bastion Conputer Corp. | |||||||
| Balance Sheet | |||||||
| 31-Dec-20 | |||||||
| Assets | 2020 | 2019 | Liabilities and Equity | 2020 | 2019 | ||
| Cash | $2.80 | $1.60 | Total current liabilities | $8.80 | $7.20 | ||
| Short-term investments | 0.4 | 0.5 | Long-term liabilities | 8.6 | 8.3 | ||
| Accounts receivable | 0.5 | 0.4 | Total liabilities | 17.4 | 15.5 | ||
| Inventory | 9.2 | 8 | |||||
| Other current assets | 0.8 | 0.6 | Common shares | 5.2 | 4.8 | ||
| Total current assets | 13.7 | 11.1 | Retained earnings | 15.7 | 11.8 | ||
| All other assets | 24.6 | 21 | Total equity | 20.9 | 16.6 | ||
| Total assets | $38.30 | $32.10 | Total liabilities and equity | $38.30 | $32.10 |
Use the financial statements of Bastion
Computer Corp., plus the following item (in millions):Number of common shares outstanding
.......................0.8
1. Compute earnings per share (EPS) for Bastion Computer Corp. Round to the nearest cent.
2. Compute Bastion Computer Corp.'s price/earnings ratio. The price of a Bastion Computer Corp. common share is $131.00.
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
