Hatfield Industry Hatfield Industry (Op. costs)/Sales 90% 88% Profit margin (M) 3.30% 5.60% Depr./FA 10% 12% Return on assets (ROA) 4.6% 9.5% Cash/Sales 1% 1% Return on equity (ROE) 10.0% 15.1% Receivables/Sales 14% 11% Sales/Assets 1.41 1.69 Inventories/Sales 16% 15% Asset/Equity 2.15 1.59 Fixed assets/Sales 40% 32% Debt/TA 28.2% 16.9% (Acc. pay. & accr.)/Sales 18% 12% (Total liabilities)/(Total assets) 53.5% 37.3% Tax rate 25% 25% Times interest earned 3.8 11.7 Target WACC 10% 11% P/E ratio 6.7 16.0 Interest rate on debt 8% 7% OP ratio: NOPAT/Sales 4.5% 6.1% CR ratio: (Total op. capital)/ Sales 53.0% 47.0% ROIC 8.5% 13.0% Hatfield Medical Supply (Millions of Dollars, Except per Share Data) Balance Sheets, 12/31/2021 Income Statement, Year Ending 2021 Cash $ 90 Sales $9,000.9 Accounts receivable 1,260 Op costs Inventories 1,440 Total CA $2,790 (excl. depr.) Depreciation 8,100.9 360.0 Net fixed assets 3,600 EBIT $ 540.0 Total assets $6,390 Interest 144.0 Pre-tax earnings $ 396.0 Accts. pay. & accruals $1,620 Taxes (25%) 99.0 Line of credit Net income $ 297.0 Total CL $1,620 Additional Information Long-term debt 1,800 Dividends $ 100 Total liabilities $3,420 Additions to RE $ 197 Common stock 2,100 Common shares 50 Retained earnings 870 EPS $ 5.94 Total common equity $2,970 DPS $ 2.00 Total liab. & equity $6,390 Ending stock price $ 40.00