7 Income Statement For the year ended December 31, 2010 Balance Sheet Dec 31, 2009 $2,500 $100,000 2010 $4,000 Cash B points Sales (credit) Less: Cost of goods sold Gross profit Less: Operating expenses Less: Depreciation 70,000 30,000 Accounts receivable Inventories 6,000 8,500 7000 9,000 8 02:1124 16,000 1,000 7,000 15,000 7,000 15,500 Land Other fixed assets Accumulated depreciation Total assets (5,000) $34,000 (6,000) $36,500 |EBIT Less: Interest expense EBT Less: Taxes Net Income Total common shares outstanding Market price Dividend Paid 13,000 500 12,500 1,900 $10,600 Accounts payable Bonds $4,000 6,000 $5,000 6,500 10,000 4.00 9,600 Common stock 15,000 15,000 Retained earnings 9,000 10,000 Total Liabilities & Equity $34,000 $36,500 Calculate quick ratio for the company for 2010 using information from the above financial statements. Multiple Choice HUU Dividend Paid 9,600 potained earnings 9,000 Total Liabilities & Equity $34,000 10,000 $36,500 7 Calculate quick ratio for the company for 2010 using information from the above financial statements 8 point Multiple Choice O 22 O 26 2.4 1.7 8 Balance Sheet Assets: Cash and marketable securities Income statement Net soles (all credit) $10,000,000 $600,000 (3,000,000) 8 points 900,000 1,500,000 75,000 $3,075,000 8 Accounts receivable Inventories Prepaid expenses Total current assets Fixed assets Less: accum. depreciation. 02:10:51 Less: Cost of goods sold Selling and administrative expense Depreciation expense Interest expense Earnings before taxes Income taxes Net income Common stock shares Outstanding Market price (2,000,000) (250,000) (200,000) 4,550,000 (1,820,000) $2,730,000 8,000,000 (2,075,000) Net fixed assets Total assets $5.925,000 $9,000,000 1,000,000 30.00 Liabilities: Accounts payable Notes payable Accrued taxes Total current liabilities Long-term debt Owner's equity (1 million shares of common stock outstanding) Total liabilities and owner's Jequity $800,000 700,000 50,000 $1,550,000 2,500,000 4,950,000 $9,000,000 Based on the information in the above table the company's price earnings ratio is - 00 Based on the information in the above table the company's price earnings ratio is Multiple Choice 8 points 02:10:30 3.09. 4.83 10.99 9.85 9 Balance Sheet Assets: Cash and marketable securities income statement Net sales (all credit) $10,000,000 $600,000 (3,000,000) 8 Joints Accounts receivable Jinventories Prepaid expenses Total current assets Fixed assets Less: accum. depreciation. 900,000 1,500,000 75,000 $3,075,000 02:10:24 Less: Cost of goods sold Selling and administrative expense Depreciation expense Interest expense Earnings before taxes Income taxes Net Income Common stock shares outstanding Mar price (2,000,000) (250,000) (200,000) 4,550,000 (1.820,000) $2,730,000 8,000,000 (2,075,000) Net fixed assets Total assets $5.925,000 $9,000,000 1,000,000 30.00 Liabilities: Accounts payable Notes payable Accrued taxes Total current liabilities Long-term debt Owner's equity (1 million shares of common stock outstanding) Total liabilities and owner's Jequity $800,000 700,000 50,000 $1,550,000 2,500,000 4,950,000 $9,000,000 Based on the above table calculate the market value to book value of the company Jequity $9,000,000 9 Based on the above table calculate the market value to book value of the company 3 points Multiple Choice 02:10:12 4.95 times 1.81 times 3.33 Times 6.06 times