The Following Are the Income Statements and Balance Sheets for Coors

question 12

Multiple Choice

The following are the income statements and balance sheets for Coors Company: $\begin{array}{ll}&20X2\\\text { Sales (only credit sales) } & \$ 1,606.0 \\\text { Less cost of goods sold } & \underline{1,062.0} \\\text { Gross profit } & \$ 544.0 \\\text { Less operating expenses } & \underline{322.0} \\\text { Operating income } & \$ 222.0 \\\text { Less other expense: Interest } & \underline{9.6} \\\text { Income before tax } & \$ 212.4 \\\text { Less income tax expens e } & \underline{85.0} \\\text { Net income } & \$ 127.4\end{array}$

$\begin{array}{llllll}&20X2&20X1&&20X2&20X1\\\text { Current assets: } & & & \text { Current liab: } \\\text { Cash } & \$ 36 & \$ 38 & \text { Accts payable } & \$ 98 & \$ 64 \\\text { Accts receivable } & 180 & 144 & \text { W ages p ayable } & 18 & 16 \\\text { Inventory } & 120 & 100 & \text { Taxes payable } & 28 & 4 \\\text { Prep aid rent } & 20 & 24 & \text { Current portion } & &\\\begin{array}{l}\text { Total current as sets } \\\text { Long-term as sets: }\end{array} & \$ 356 & \$ 306 & \begin{array}{l}\text { of long- term debt } \\\text { Total current }\end{array} & \underline{30} & \underline{6} \\\text { Fixed ass ets } & \$ 320 & \$ 316 & \text { liabilities } & \$ 174 & \$ 90 \\\text { Accum. deprec. } & (206) & (180) & \text { Long-term liabilities } & 66 & 92\\\text { Total long- term } & \$ 114 & \$ 136 & \text { T otal liabilities } & \$ 240 & \$ 182\\\text { assets }\\&&&\text { Owners' equity: }\\\text { Common stock, } \$ 5 \text { par } &\$ 80 & \$ 80\\&&&\text { Retained income } & \underline{150} & \underline{180} \\&&&\text { T otal owners' equity } & \$ 230 & \$ 260\\&&&\text { T ot al liab. and }\\\text { Total assets } & \$ 470 & \$ 442 & \text { own. equity } & \$ 470 & \$ 442\end{array}$ December 31 market price per share: $120 $106 The price- earnings ratio for Coors Company in 20X2 is:

• A) 0.06 times
• B) 7.50 times
• C) 0.96 times
• D) 15.07 times

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Definitions:

Puma

A large American cat also known as the cougar or mountain lion, noted for its strength, agility, and adaptability in various habitats.

Nomadic Hunters

Prehistoric and contemporary groups that move from place to place in search of game and other resources, practicing hunting and gathering.

Apache

A group of culturally related Native American tribes, originally from the Southwestern United States, known for their rich cultural heritage and resistance against colonization.

Northwestern Canada

A region in Canada encompassing territories like Yukon, Northwest Territories, and parts of northern British Columbia, noted for its rugged landscapes and sparse population.