Question

Tamarisk 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 Tamarisk Inc. operations.

		($000 omitted)
		2021		2020		2019		2018		2017
Sales revenue		$19,990		$15,980		$13,870		$5,940		$3,980
Net income		2,430		1,410		800		690		250
Average total assets		22,150		19,040		11,560		4,180		2,980
Current assets		8,070		6,010		3,000		1,190		1,010
Working capital		3,640		3,180		1,210		500		400
Common shares:
Number of shares outstanding (000)		2,000		2,000		2,000		20		20
Average market price		$8		$7		$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 Tamarisk Inc. (Round answers to 2 decimal places, e.g. 2.25 or 2.25%.)

		2021			2020			2019			2018			2017
Return on assets			%			%			%			%			%
Profit margin on sales			%			%			%			%			%
Earnings per share		$			$			$			$			$
Price-earnings ratio			times			times			times
Current ratio			times			times			times			times			times

Answer 1

Tamarisk Inc. a b С Sales Revenue Net Income Avg Total Assets Current Assets Working Capital Current Liabilities No of shares outstanding Avg Market Price $ $ $ $ $ $ d 2021 19,990 $ 2,430$ 22,150 $ 8,070 $ 3,640 $ 4,430$ 2000 8 $ 2020 2019 2018 2017 15,980 $ 13,870 $ 5,940 $ 3,980 1,410 $ 800 $ 690 $ 250 19,040 $ 11,560 $ 4,180 $ 2,980 6,010 $3,000 $ 1,190 $ 1,010 3,180 $ 1,210 $ 500 $ 400 2,830 $ 1,790 $ 690$ 610 2000 2000 20 20 7$ 4 e f=d-e 8 h $ Return on Assets Profit Margin on sales Earnings per share Price Earning ratio (times) Current Ratio (times) (b/c) (b/a) (b/g) (hxg/b) (d/f) $ 10.97% 12.16% 1.22 $ 6.58 1.82 7.41% 6.92% 16.51% 8.39% 8.82% 5.77% 11.62% 6.28% 0.71 $ 0.40 $ 34.50 $ 12.50 9.93 10.00 2.12 1.68 1.72 1.66

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