Question
Income Statement ($ millions) Year 0 Revenues (Sales) 800 Operating Costs 300 Depreciation 100 Amortization 0 EBIT Interest Expense _ EBT 220 Taxes (25%) ____
Income Statement
($ millions) Year 0
Revenues (Sales) 800
Operating Costs 300
Depreciation 100
Amortization 0
EBIT
Interest Expense _
EBT 220
Taxes (25%) ____
Net Income $
Dividends
Add to RE 120
Balance Sheet
Cash $ 100
Receivables 200
Inventories 150
Current Assets 450
Net Fixed Assets 100
Total Assets 550
Accounts Payable 50
Notes Payable 10
Accruals 30
Current Liabilities 90
Bonds 110
Common Stock 150
Retained Earnings ____
Total Liab & Eq $
- Find the following ratios for Year 0 and comment on each:
Ind Avg Ratio Comment
current ratio 3.5 X
inventory turnover 5.1 X
DSO 62 days
Fixed asset turnover 6 X
total asset turnover 1.2 X
debt ratio 41%
TIE 1.8 X
profit margin 15.1 %
ROA 18.1 %
ROE 30.7 %
Extended DuPont equation
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Re Imagining Offshore Finance
Authors: Christopher M. Bruner
1st Edition
0190466871, 978-0190466879
