50-A1, D1

1. Discussion Question:

PART A -

Please answer each of the following questions in detail and provide in-text citations in support of your argument. Include numerical examples, and samples.

Provide an explanation of the four (4) basic financial statements, namely, 

1. the balance sheet, 

2. the income statement, 

3. the statement of cash flows. and

4. Please read Chapter 2 reading, assignment to find the answer for the fourth one.

Analyze the relation between change in equity, the net income, and the cash flows from investing activities, during a period. Please describe and provide examples demonstrating your understanding of retained earnings, in which financial statement it is recorded, and under which category. 

PART B -

When a publicly traded company buys back its own shares, it has two options of what it can do with these shares, please describe each option with it is pros and cons.

PLEASE write the assigned sections A and B as well as the numerical orders followed by the question, followed by your response.

2.

ABC Company had addition to retained earnings for the current fiscal year just ended of $395,000. The firm paid out $195,000 in cash dividend, and it has ending total equity of $5.3 million. The company currently has 170,000 shares of common stock outstanding. Please answer the following questions: 

1. What are earnings per share (E/PS)? 


2. Dividends per share?


3. Book value of share?


4. If the stock currently sells for $64 per share, what is the market-to-book ratio?


5. The price to earnings ratio (P/E)?


6. The company had sales of $5.15 million, what is the price to sales ratio (P/S)?


7. Finally, explain the implication of P/E ratio for different types of investors.

Provide your explanations and definitions in detail and be precise. Comment on your findings. Provide references for content when necessary. Provide your work in detail and explain in your own words. Support your statements with peer-reviewed in-text citation(s) and reference(s).