Hello fellow Chegg users, I'm having trouble with my assignment for my Basic Business Finance class and I was wondering if you could help me out. Primarily, the last few ratios as well as the EBITDA Coverage Ratio which are the hardest to understand and answer. Any help would be appreciated and please don't forget to explain how you got the solution for me to better understand so that I can apply it to future assignments too. Thank you so much!
11/26/2018 Build a Model Chapter: Problem: 3 15 Joshua & White Technologies: December 31 Balance Sheets (Thousands of Dollars) Assets Cash and cash equivalents Short-term investments Accounts Receivable Inventories Total current assets Net fixed assets Total assets 2019 $21,000 3,759 52,500 84,000 $161,259 223,097 $384.356 2018 $20,000 3,240 48,000 56,000 $127,240 200,000 $327.240 Liabilities and equity Accounts payable Accruals Notes payable Total current liabilities Long-term debt Total liabilities Common stock Retained Earnings Total common equity Total liabilities and equity $33,600 12,600 19,929 $66,129 67,662 $133,791 178,440 72,125 $250,565 $384.356 $32,000 12,000 6,480 $50,480 58,320 $108,800 178,440 40,000 $218,440 $327.240 Joshua & White Technologies December 31 Income Statements (Thousands of Dollars) 2019 2018 Sales $420,000 $400,000 COGS except excluding depr. and amo 300,000 298,000 Depreciation and Amortization 19,660 18,000 Other operating expenses 27,600 22,000 EBIT $72,740 $62,000 Interest Expense 5,740 4,460 EBT $67,000 $57,540 Taxes (25%) 16,750 14,385 Net Income $50.250 $34.524 Common dividends Addition to retained earnings $18,125 $32,125 $17,262 $17,262 Other Data Year-end Stock Price # of shares (Thousands) Lease payment (Thousands of Dollars) Sinking fund payment (Thousands of D 2019 $90.00 4,052 $20,000 $5,000 2018 $96.00 4,000 $20,000 $5,000 2019 2018 Industry Avg 2.44 1.17 2.52 1.41 2.58 1.53 3.81 45.63 1.88 1.09 5.64 43.80 2.00 1.22 7.69 47.45 2.04 1.23 22.8% 34.8% 12.67 19.8% 33.2% 13.90 Ratio Analysis Liquidity Ratios Current Ratio Quick Ratio Asset Management Ratios Inventory Turnover (Total COGS/Inve Days Sales Outstanding Fixed Assets Turnover Total Assets Turnover Debt Management Ratios Debt Ratio (Total debt-to-assets) Liabilities-to-assets ratio Times-interest-earned ratio EBITDA coverage ratio Profitability Ratios Profit Margin Basic Earning Power Return on Assets Return on Equity Market Value Ratios Earnings per share Price-to-earnings ratio Cash flow per share Price-to-cash flow ratio Book Value per share Market-to-book ratio 20.0% 32.1% 15.33 4.18 11.96% 18.93% 13.07% 20.05% 8.63% 18.95% 10.55% 15.80% 8.86% 19.48% 10.93% 16.10% $12.40 7.26 $8.63 11.12 NA 10.65 NA 7.11 NA 1.72
