76 Chapter 2 Financial Statement Analysis P2.8You are an analyst and have certain rates of return, profit margins, and other information on the Jeff, Matt, and Mike Associates Company. Using the information in the exhibit, complete the partial financial statements and Calculate the missing financial ratios (shown as "?-#") in Exhibit P2.8. The company had no purchases or other additions to Intangible Assets. (All financial ratios using balance sheet numbers are calculated using Year 7 ending balances instead of average balances. The company had no sales or retirements of property, plant, and equipment or intangible assets. Essentially all of the company's property, plant, and equipment is depreciable. All changes in financing occur at the end of the fiscal year.) EXHIBIT P2.8 Financial Statements for Jeff, Matt and Mike Associates 2-1 Income tax rate 30.0% 9.0% ?-5 Invento Income before income tax expense (EBT). . . . . . .. .. . ?-7 ?-8 7-10 2-11 Cost of goods sold expense ratio . . . . . . . . . . . . . . . . . Selling, general and administrative expense ratio . . . . . 28.571% 33.333% 0.546 Inventory 13 EBITDA ?-14 2-15 Days 1.531 ?-17 Provision for bad debts ratio. . . . . . . . . . . . . . . . . . . . . 4.546% Total assets with excess assets. .. . . . . . . . .. . . . . 8.500 ?-19 ?-20 $4.375 984.0 Total debt ?-21 ?-22 -23 -24 ?-25 26 27 Shares outstanding for basic EPS. Preferred stock Retained earnings Shareholders' equity tal liabilities and stockholders' equity 76 Chapter 2 Financial Statement Analysis P2.8You are an analyst and have certain rates of return, profit margins, and other information on the Jeff, Matt, and Mike Associates Company. Using the information in the exhibit, complete the partial financial statements and Calculate the missing financial ratios (shown as "?-#") in Exhibit P2.8. The company had no purchases or other additions to Intangible Assets. (All financial ratios using balance sheet numbers are calculated using Year 7 ending balances instead of average balances. The company had no sales or retirements of property, plant, and equipment or intangible assets. Essentially all of the company's property, plant, and equipment is depreciable. All changes in financing occur at the end of the fiscal year.) EXHIBIT P2.8 Financial Statements for Jeff, Matt and Mike Associates 2-1 Income tax rate 30.0% 9.0% ?-5 Invento Income before income tax expense (EBT). . . . . . .. .. . ?-7 ?-8 7-10 2-11 Cost of goods sold expense ratio . . . . . . . . . . . . . . . . . Selling, general and administrative expense ratio . . . . . 28.571% 33.333% 0.546 Inventory 13 EBITDA ?-14 2-15 Days 1.531 ?-17 Provision for bad debts ratio. . . . . . . . . . . . . . . . . . . . . 4.546% Total assets with excess assets. .. . . . . . . . .. . . . . 8.500 ?-19 ?-20 $4.375 984.0 Total debt ?-21 ?-22 -23 -24 ?-25 26 27 Shares outstanding for basic EPS. Preferred stock Retained earnings Shareholders' equity tal liabilities and stockholders' equity