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I need the correct answers to the questions marked with a red x.... 6 x 3 x 2.25 % 6.75% 13.30% 13.20 % Industry Average
I need the correct answers to the questions marked with a red x....
6 x 3 x 2.25 % 6.75% 13.30% 13.20 % Industry Average Ratios Current ratio 3 x Fixed assets turnover Debt-to-capital ratio 17 % Total assets turnover Times interest earned 6 x Profit margin EBITDA coverage 6 x Return on total assets Inventory turnover 11 x Return on common equity Days sales 24 days Return on invested outstanding capital Calculation is based on a 365-day year. Balance Sheet as of December 31, 2019 (Millions of Dollars) Cash and equivalents $ 72 Accounts payable Accounts receivables 64 Other current liabilities Inventories 145 Notes payable Total current assets $ 281 Total current liabilities Long-term debt Total liabilities Gross fixed assets 196 Common stock Less depreciation 52 Retained earnings Net fixed assets $ 144 Total stockholders' equity Total assets $ 425 Total liabilities and equity $ 34 13 34 $ 81 30 $ 111 106 208 $ 314 $ 425 Income Statement for Year Ended December 31, 2019 (Millions of Dollars) Net sales $ 765.00 Cost of goods sold 660.00 Gross profit $ 105.00 Selling expenses 59.50 EBITDA S 45.50 Depreciation expense 10.00 Earnings before interest and taxes (EBIT) $ 35.50 Interest expense 3.50 Earnings before taxes (EBT) S 32.00 Taxes (25%) 8.00 Net income S 24.00 $ 6 a. Calculate the following ratios. Do not round intermediate calculations. Round your answers to two decimal places. Firm Industry Average Current ratio 3 x 3.4691 Debt to total capital 17 % 26.12 % Times interest earned 10.142 EBITDA coverage 2.44 6 x Inventory turnover 11x 5.2758 Days sales outstanding 30.535 days 24 days Fixed assets turnover 6 x 5.3125 Total assets turnover 1.8 Profit margin 2.25 % 3.1372 % Return on total assets 6.75 % 5.65 % Return on common equity 7.6433 % 13.30% Return on invested capital 6.26 % 13.20 % b. Construct a DuPont equation for the firm and the industry. Do not round intermediate calculations. Round your answers to two decimal places. Firm Industry Profit margin 2.25% % 3 x Total assets turnover 3x X Equity multiplier
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