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Following is the 2019 balance sheet, income statement and other relevant financial information. Compute the following ratios: 1) quick ratio, 2) DSO, 3) inventory turnover
Following is the 2019 balance sheet, income statement and other relevant financial information. Compute the following ratios: 1) quick ratio, 2) DSO, 3) inventory turnover ratio, 4) total debt to total capital ratio, 5) ROA, 6) operating margin, 7) P/E ratio. Each calculation is worth two points.
Balance Sheets | 2019 | ||
Assets | |||
Cash and equivalents | $100 | ||
Short-term investments | 10 | ||
Accounts receivable | 500 | ||
Inventories | 1,000 | ||
Total current assets | $1,610 | ||
Net property, plant & equipment (PP&E) | 2,000 | ||
Total assets | $3,610 | ||
Liabilities and Equity | |||
Accounts payable | $200 | ||
Notes payable | 150 | ||
Accruals | 400 | ||
Total current liabilities | $750 | ||
Long-term bonds | 520 | ||
Total liabilities | $1,270 | ||
Preferred stock | 100 | ||
Common stock | 500 | ||
Retained earnings | 188 | ||
Total common equity | $688 | ||
Total liabilities and equity | $2,058 | ||
Income Statements | 2019 | ||
Net sales | $5,000 | ||
Costs of goods sold except depreciation | 3,900 | ||
Depreciationa | 200 | ||
Other operating expenses | 500 | ||
Earnings before interest and taxes (EBIT) | $400 | ||
Less interest | 60 | ||
Pre-tax earnings | $340 | ||
Taxes (25%) | 85 | ||
Net income before preferred dividends | $255 | ||
Preferred dividends | 7 | ||
Net income available to common stockholders | $248 | ||
Additional Information | |||
Common dividends | $60.0 | ||
Addition to retained earnings | $188.0 | ||
Number of common shares | 60 | ||
Common stock price per share | $31.00 | ||
Lease payments | $28 | ||
Bonds' required sinking fund payments | $20 | ||
Tax rate | 25% | ||
Days | 365 |
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