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Question 9 of 9 < - /3.8 = View Policies Current Attempt in Progress Cheyenne Inc. went public 3 years ago. The board of directors will be meeting shortly after the end of the year to decide on a dividend policy. In the past, growth has been financed primarily through the retention of earnings. A stock or a cash dividend has never been declared. Presented below is a brief financial summary of Cheyenne Inc. operations. Sales revenue Net income Average total assets Current assets Working capital Common shares: Number of shares outstanding (000) Average market price 2021 $19,990 2,430 22.150 8,070 3,640 ($000 omitted) 2020 2019 $15,980 $13,870 1,410 800 19.040 11,560 6,010 3,000 3,180 1.210 2018 $5,940 690 4,180 1,190 500 2017 $3,980 250 2.980 1,010 400 20 20 2,000 $8 2,000 $7 2,000 $4 (b) Compute the return on assets, profit margin on sales, earnings per share, price-earnings ratio, and current ratio for each of the 5 years for Cheyenne Inc. (Round answers to 2 decimal places, eg, 2.25 or 2.25%.) 2021 2020 2019 Return on assets % % Profit margin on sales % % $ $ $ Earnings per share Price-earnings ratio times times Current ratio times times e Textbook and Media Save for Later Attempts: 0 of 5 used Submit Answer

Answer 1

pogliculass 2021 102020 2019 ] Het Income a) fretum on Assets (ROA) xloo Average Total Assets Wet Income $9430 Average Total $2215 Assets $19040 $1110 $ 800 $ 11560 osentistas quia 800 X 100 19040 , 11560 16092% ROA 2430 - too X100 22150 10-9.7%. 7.41% b) Gonna Prokt margin onsales : aleprofit xoo Sales Revenue e Net Proht 1 $2430 sales Revenue $19990 $ 1410 $15980 $ 800 $13870 profet margin 12-164 8-237 (5.77% on sales (42) 2100 c) Earning per share , Net Income number of shares defskorting $2430 $ 1410 $ 800 2000 2.000 2000 Net Income Numberot shares & Eps(V2 ) $ 1.210 (por 705 Boy

1209 2020 d Price Earning 2019 maa ketrice Ratto Earning pashore market price $8 $ 7 $4 $0.4 $ 0.705 Ecaningper $1.215 share Poid Earnin Ratio (2) 6.5stime 9. Btimes lo lime) e cursent fabia arsent Assets corrent liabilities) o working capital = cursent Assets-callent liabilities cursentlicholilies a current Assets-working capital 202) 2020 2019 current Assets $6010 $ 3000 $8070 calleufsabilities $4430 $2830 $ 1290 (1.676 times cassent Ratto 1.821 times 2. 123times