Balance Sheet (in millions of $)	2015
Assets
Cash	$2,500
Short-term investments (securities: cash
equivalents)	0
Accounts Receivable	11,500
Inventories	16,000
Total Current Assets	30,000
Net Fixed Assets	20,000
Total Assets	50,000
Liabilities and Equity
Accounts Payable	9,500
Notes Payable	7,000
Accruals	5,500
Total Current Liabilities	22,000
Long-term Debt	15,000
Common Stock (100,000 shares)	2,000
Retained Earnings	11,000
Total Equity	13,000
Total Liabilities & Equity	50,000
Income Statements (in Millions $)
Sales	$87,500
Operating Costs except depreciation	81,813
Other Expenses	0
Depreciation	1,531
Total operating costs	83,344
Operating income (EBIT)	4,156
Interest expense	1,375
Earnings Before Taxes (EBT)	2,781
Taxes (40%)	973
Net Income	1,808
Other Data
Year end stock price	$43.39
Shares outstanding (in millions)	500
EPS	$3.62
DPS	$1.27
Federal-plus-state tax rate	40%

What is the firms current ratio?

What is the firms quick ratio?

What is the firms total assets turnover?

What is the firms inventory turnover ratio?

What is the firms total debt-to-total capital ratio?

What is the firms ROA?

What is the firms ROE?

What is the firms BEP?

What is the firms profit margin?

What is the firms return on invested capital?

What is the firms operating margin?

What is the firms book value per share?

What is the firms days sales outstanding? Assume a 365-day year for this calculation.

What is the firms ROE as calculated using the DuPont Equation?

Final questionYour sister is thinking about starting a new business. The company would require $225,000 of assets, and it would be financed entirely with common stock. She will go forward only if she thinks the firm can provide a 18% return on the invested capital, which means that the firm must have an ROE of 18%. How much net income must be expected to warrant starting the business?