6) Imagine that A U.S. resident bought 100 shares of KLM at a price of 34 guilders per share a year ago on the Amsterdam Stock Exchange. At that time, the guilder-dollar exchange rate was 1.90 guilders per dollar. The exchange rate is now 2.00 guilders per dollar. The shares paid 1.5 guilders in dividends during the year and are selling today for 37 guilders per share. Determine: a. The Dollar investment in KLM shares b. The Dollar return to the investor c. The percentage return to the investor For problems 7:10 use the tables listed below Balance Sheet 2006 2005 Income Statement Assets 2006 2005 Cash 85,632 A/R 878.000 7,282 632,160 Sales 7,035,600 6,034,000 COGS 5,875,992 5.528,000 Inventories 1,716,480 1,287,360 Other Expenses 550,000 519.988 Total CA 2,680,112 1,926,802 EBITDA 609,608 (13.988) Gross FA 1,197,160 1,202,950 Depr & Amort 116,960 116,960 Less: Dep 380,120 263,160 EBIT 492,648 (130,948) Net FA 817,040 939,790 Interest Exp 70,008 136.012 Total Assets 3,497,152 2,866,592 EBT 422.640 (266,960) Taxes 169,056 (106,784) Net Income 253,584 (160,176) Liabilities Accts payable 436.800 524,160 Notes payable 300,000 636,808 Accruals 408,000 489,600 Other Important Data Total CL 1,144,800 1,650,568 2006 2005 Long-term debt 400,000 723,432 No. of Shares 250,000 100,000 Common Stock 1,721,176 460,000 EPS 1.014 (1.602) Retained Earnings 231,176 32.592 DPS 0.220 0.110 Total Equity 2.352,352 Total L&E 3,497,152 1,216,024 2,866,592 Stock Price 12.17 2.25 Lease pmts 40,000 40,000 7) Calculate the Current Ratio and the Quick Ratio for the firm represented above. How would you assess their liquidity position to be? Explain. 8) Calculate the Profit Margin, ROA, and ROE for this firm. 9) Calculate the Days Sales Outstanding (DSO) Ratio and explain what action you could take to decrease that for the firm. 10) What are the five major categories of ratios, and what questions do they answer?