Answered step by step
Verified Expert Solution
Question
1 Approved Answer
BALANCE SHEET Cash $140.0 Accounts payable $800.0 Accts. receivable 880.0 Notes payable 600.0 Inventories 1,320.0 Accruals 400.0 Total current assets $2,340.0 Total current liabilities $1,800.0
BALANCE SHEET | ||||
Cash | $140.0 | Accounts payable | $800.0 | |
Accts. receivable | 880.0 | Notes payable | 600.0 | |
Inventories | 1,320.0 | Accruals | 400.0 | |
Total current assets | $2,340.0 | Total current liabilities | $1,800.0 | |
Long-term bonds | 1,000.0 | |||
Total debt | $2,800.0 | |||
Common stock | 200.0 | |||
Retained earnings | 1,000.0 | |||
Net plant & equip. | 1,660.0 | Total common equity | $1,200.0 | |
Total assets | $4,000.0 | Total liabilities & equity | $4,000.0 | |
INCOME STATEMENT | ||||
Net sales | $6,000.0 | |||
Operating costs | 5,599.8 | |||
Depreciation | 100.2 | |||
EBIT | $300.0 | |||
Less: Interest | 96.0 | |||
EBT | $204.0 | |||
Less: Taxes | 81.6 | |||
Net income | $122.4 | |||
OTHER DATA | ||||
Shares outstanding | 60.00 | |||
Common dividends | $42.8 | |||
Federal plus state income tax rate | 40% | |||
Year-end stock price | $30.60 |
Use Scenario 1 to answer the question. What is the firm's current ratio?
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