Answered step by step
Verified Expert Solution
Question
1 Approved Answer
6. Use the following financial statements for CCU company. BALANCE SHEET (million) 2021 2021 Cash $ 140 Accounts payable 800 Accts. Receivable 880 Notes
6. Use the following financial statements for CCU company. BALANCE SHEET (million) 2021 2021 Cash $ 140 Accounts payable 800 Accts. Receivable 880 Notes payable 600 Inventories 1,320 Accruals 400 Total current assets $2,340 Total current liabilities 1,800 Long-term debt (bonds) 1,000 Fixed assets $1660 Common stock (50,000 200 shares) Retained earnings 1,000 Total assets $4,000 Total liabilities & equity 4,000 2021 INCOME STATEMENT (million) Sales Operating costs $ 6,000 5,700 EBIT $ 300 Less: Interest 96 EBT $ 204 Less: Taxes (40%) 81.6 Net income $ 122.4 OTHER DATA Expected dividend payout ratio Federal plus state income tax rate 30% Interest rate on notes payable and long-term debt 8% 40% Ratio Current ratio Total asset turnover Days Sales Outstanding Times-interest-earned Liabilities-to-assets Net profit margin on sale Return on equity Basic earning power CCU Benchmark 1.2 2.1 38.72 5.2 0.36 2.1% 9.8% 7.4% a) Calculate CCU's financial ratios and fill in the blanks.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started