39200 10000 20000 13000 13000 8000 8400 55600 5000

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Unformatted text preview: 13,000 (8,000) 8,400 55,600 $(5,000) 5,000 0 $(25,000) (30,600) 10,000 (45,600) 10,000 10,000 $20,000 $8,400 10,000 5,000 Fred's Fine Lingerie and Harley Shoppe Ratios P/E $25.00 ÷ $2.41 = 10.36 A P/E ratio of 10.36 means that if you invest in this company today at $25.00 per share, you will have a return of 9.65% per year, assuming no growth. Book Value per Share 25,000 = $3.98 $103,000.00 ÷ Current Ratio $99,600.00 ÷ $88,400.00 = 1.17 Normally a current ratio this low would signal cash flow problems, but since the current portion of the note payable of $25,000 is not due until December 31st of 20x0 and the amount in inventory is not very high, this company will be able to meet its current obligations. ROA $39,200.00 ÷ $39,200.00 ÷ (($226,000 + $238,000)/2) = $232,000.00 = 0.1689655 = 16.90% Management is ea...
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This document was uploaded on 03/23/2014.

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