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Based on your calculation, what can you say about the company's liquidity position? Based on the ratios, how long does it take Tiger Inc to
Based on your calculation, what can you say about the company's liquidity position?
Based on the ratios, how long does it take Tiger Inc to turn sales into cash
Using Tigers data and its industry averages, how well run would you say Tiger appears to be in comparison with other firms in its industry? What are its primary strengths and weaknesses? Be specific in your answer, and point to various ratios that support your position.
Tiger Inc: December 31 Balance Sheets (Thousands of Dollars) | Tiger Inc December 31 Income Statements (Thousands of Dollars) | |||
Assets | 2019 | 2019 | ||
Cash and cash equivalents | $20,000 | Sales | $425,000 | |
Accounts Receivable | 52,500 | COGS | 327,000 | |
Inventories | 87,750 | Depreciation and Amortization | 17,480 | |
Total current assets | $160,250 | EBIT | $80,520 | |
Net fixed assets | 218,500 | Interest Expense | 5,740 | |
Total assets | $378,750 | EBT | $74,780 | |
Liabilities and equity | Taxes (40%) | 29,912 | ||
Accounts payable & accruals | $66,000 | Net Income | $44,868 | |
Line of credit | 0 | Common Dividends | $18,125 | |
Total current liabilities | $66,000 | Addition to Retained Earnings | $26,743 | |
Long-term debt | 67,500 | |||
Total liabilities | $133,500 | |||
Common stock | 183,175 | |||
Retained Earnings | 62,075 | |||
Total common equity | $245,250 | |||
Total liabilities and equity | $378,750 | |||
Other Data | ||||
2019 | ||||
Exp. Sales growth rate | 11.00% | |||
Interest rate on LT debt | 7.00% | |||
Interest rate on LOC | 5.00% | |||
Dividend growth rate | 9.00% | |||
Tax rate | 40% |
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