Question
Carolina, Inc. Balance Sheet Year 2022 2021 Assets Cash 384 249.7 Receivables 364.5 367.5 Inventories 1070.4 1086.3 Total CA 1818.9 1703.5 Fixed Assets 7738.8 7771.7
Carolina, Inc. Balance Sheet
Year | 2022 | 2021 |
Assets |
|
|
Cash | 384 | 249.7 |
Receivables | 364.5 | 367.5 |
Inventories | 1070.4 | 1086.3 |
Total CA | 1818.9 | 1703.5 |
|
|
|
Fixed Assets | 7738.8 | 7771.7 |
|
|
|
Total Assets | 9557.7 | 9475.2 |
|
|
|
Liabilities and Equity |
|
|
Payables | 387.2 | 357.6 |
Other | 286.5 | 319.3 |
Total CL | 673.7 | 676.9 |
|
|
|
LT Debt | 2084.9 | 2120.5 |
Other LT Liabilities | 1426.2 | 1414.4 |
Total LT Liabilities | 3511.1 | 3534.9 |
|
|
|
Total Liabilities | 4184.8 | 4211.8 |
|
|
|
Common Stock | 3700 | 3700 |
Retained Earnings | 1672.9 | 1563.4 |
Total Equity | 5372.9 | 5263.4 |
|
|
|
Total Liabilities and Equity | 9557.7 | 9475.2 |
Carolina Inc. Income Statement
Year | 2022 | 2021 |
Total Revenue | 6324.6 | 5925.8 |
|
|
|
CoGS | 4047.9 | 3830.6 |
Fixed Costs | 1003.3 | 912.7 |
Depreciation | 180.8 | 192.9 |
|
|
|
Operating Income | 1092.6 | 989.6 |
|
|
|
Interest | 255.2 | 250.8 |
Income Tax | 167.2 | 176.4 |
|
|
|
Net Income | 670.2 | 562.4 |
13. Find Total Debt Ratio for Carolina for Year 2021. Lets say, industry average in 2021 was 35%. If Carolina decides to bring its leverage in line with the industry, how this can be done? Name at least two ways how Carolina may adjust its debt ratio to the level of industry average (explain briefly. No need to show calculations).
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