The following data are available for Saffron City, a large discount retailer Required (a) Compute Saffron Citys earnings per share and cash iuml not ow per share for each year (b) For each year, express Saffron Citys earnings per share as a percentage of its cash iuml not ow per share (c) What factors possibly accounted for Saffron Citys net cash iuml not ow from operating activities being less than the iuml not rms net income in 2007 and 2009 Why would a potential investor in this iuml not rm want to identify these factors 2007 2008 2009 Net Income Net Cash Flow from $ 88,935,0O $121,392,500 $184,085,00 Operating Activities 106,782,500 90,490,000 108,142,500 Weighted Average Number of Common Shares Outatanding 165,765,00168202,500 172,522,500 Preferred Stock Dividends Paid 1,930,000

Question: The following data are available for Saffron City, a large discount retailer. Required: (a) Compute Saffron Citys earnings per share and cash ï¬ow per share

The following data are available for Saffron City, a large discount retailer.

Required:
(a) Compute Saffron City€™s earnings per share and cash ï¬‚ow per share for each year.
(b) For each year, express Saffron City€™s earnings per share as a percentage of its cash ï¬‚ow per share.
(c) What factors possibly accounted for Saffron City€™s net cash ï¬‚ow from operating activities being less than the ï¬rm€™s net income in 2007 and 2009? Why would a potential investor in this ï¬rm want to identify these factors?

2007 2008 2009 Net Income Net Cash Flow from $ 88,935,0O $121,392,500 $184,085,00 Operating Activities 106,782,500 90,490,000 108,142,500 Weighted-Average Number of Common Shares Outatanding 165,765,00168202,500 172,522,500 Preferred Stock Dividends Paid 1,930,000

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