ABC, Inc

2018 Income Statement

($ in millions)

Net sales $9625

Less: Cost of goods sold 5,225

Less: Depreciation 1,890

Earnings Before interest and taxes 2,510

Less: Interest paid 850

Taxable income 1,660

Less: Taxes 581

Net income $1079

Addition to retained earnings $679

Dividends paid 400

ABC, Inc.

2017 and 2018 Balance Sheet

($ in millions)

2017201820172018

Cash$1,455$260Accounts payable $1,150 $2,863

Accounts rec.2,4603,975Notes payable 2,6001,628

Inventory1,405885Total$3,750$4,491

Total$5,320$5,120Long-term debt 7,0007,600

Net fixed assets 19,300 21,720Common stock 5,5005,700

Retained earnings 8,370 9,049

Total assets $24,620 $26,840Total liabilities $24,620 $26,840

1.What is the current ratio for ABC in 2018?

2.What is the debt-equity ratio for 2017?

3.What was inventory turnover for 2018?

4.What was the total asset turnover in 2018?

5.What was the return on equity for 2018?

6.What was the dividend payout ratio for ABC in 2018?

7.What was the equity multiplier for 2018?

8. If ABC stock was selling for $30 per share at the end of 2018 and there were 500 shares outstanding, what was the P/E ratio?