Check my work 1 Total assets $1,000 $700 Total liabilities and equity $1,800 $700 eBook S 2017 650 247 403 52 S Ask 5 LAKE OF EGYPT MARINA, INC. Income Statement for Years Ending December 31, 2018 and 2017 (in millions of dollars) 2018 Net sales (all credit) S 850 Less: Cost of goods sold 340 Gross profits S 510 Less: Other operating expenses 68 Earnings before interest, taxes, depreciation, and amortization (EBITDA) 442 Less: Depreciation 51 Earnings before interest and taxes (EBIT) S 391 Less: Interest 51 Earnings before taxes (EBT) S S 340 Less: Taxes 102 Net income S 238 Less: Preferred stock dividends S 7 Net income available to common stockholders S 231 Less: Common stock dividends 56 Addition to retained earnings S 175 Per (common share data: Earnings per share (EPS) S 4.125 Dividends per share (DPS) 5 1.000 Book value per share (BVPS) 5 7.375 Market value (price) per share (MVPS) $15.150 351 39 312 52 260 78 182 S s S S 5 7 175 56 119 S S 3.125 5 1.000 S 4.250 $12.950 Calculate the following ratios for Lake of Egypt Marina, Inc. as of year-end 2018. (Use sales when computing the inventory turnover and use total equity when computing the equity multiplier. Round your answers to 2 decimal places. Use 365 days a year.) LAKE OF EGYPT MARINA, INC. a. Current ratio 2.12 times b. Quick ratio 0.69 times c. Cash ratio 0.38 times d. Inventory turnover tirties e. Days sales in inventory days Average collection norint diave Check my work 1 Use the following financial statements for Lake of Egypt Marina, Inc. 2018 2017 cBook Ask LAKE OF EGYPT MARINA, INC. Balance Sheet as of December 31, 2018 and 2017 (in millions of dollars) 2018 2017 Assets Liabilities and Equity Current assets: Current liabilities: Cash and marketable securities S 100 $ 63 Accrued wages and taxes Accounts receivable 80 77 Accounts payable Inventory 371 217 Notes payable Total S 551 $357 Total Fixed assets: Long-term debt: Gross plant and equipment S520 $371 Stockholders' equity: Less: Depreciation 121 70 Preferred stock (7 million shares) Common stock and paid-in surplus Net plant and equipment S 399 $301 (56 million shares) Other long-term assets 50 42 Retained earnings Total S449 $343 Total Total assets $1,000 $788 $ Total liabilities and equity $ $ 80 100 80 $ 260 $ 320 $ 84 91 84 $259 $ $196 $ 7 56 357 $ 420 $1,000 56 182 $245 $700 $ 2017 650 247 403 52 $ LAKE OF EGYPT MARINA, INC. Income Statement for Years Ending December 31, 2018 and 2017 (in millions of dollars) 2018 Net sales (all credit) S 859 Less: Cost of goods sold 340 Gross profits S S 510 Less: Other operating expenses 68 Earnings before interest, taxes, depreciation, and amortization (EBITDA) 442 Less: Depreciation 51 Earnings before interest and taxes (EBIT) S 391 Less: Interest 51 Earnings before taxes (EBT) S 5 340 Less: Taxes 192 Net income S S 238 Less: Preferred stock dividends 5 5 7 Net income available to common stockholders S 231 Less: Common stock dividends 56 3 $ 351 39 312 52 260 78 $ $ $ $ 182 $ $ 7 7 175 56 Check my work 1 Calculate the following ratios for Lake of Egypt Marina, Inc. as of year-end 2018. (Use sales when computing the inventory turnover and use total equity when computing the equity multiplier. Round your answers to 2 decimal places. Use 365 days a year.) cBook Ask LAKE OF EGYPT MARINA, INC. . a. Current ratio 2.12 times b. Quick ratio 0.69 times c. c Cash ratio 0.38 times d. Inventory turnover times e. Days' sales in inventory days Average collection period days 9. Average payment period days h. Fixed asset turnover 1.89 times . i. Sales to working capital 2.92 limos 1. Total asset turnover 0.85 times k. Capital intensity 1.18 times Debt ratio 58.00% m. Debt-to-equity 1.38timos n. Equity multiplier times 0. Times interest earned 7.67 times p. Cash coverage times 9. Profit margin Xa r. Gross profit margin 60.00% 8. Operating profit margin 46.00% t Basic earnings power 39. 101% u. ROA V. ROE % w. Dividend payout % Market-to-book ratio times y. PE ratio limos
