Question
iven the information below for Pamplin Inc.: How much is the firm's net working capital and what is the debt ratio for 2010? Pamplin Inc.
iven the information below for Pamplin Inc.: How much is the firm's net working capital and what is the debt ratio for 2010?
Pamplin Inc. Balance Sheet at 12/31/2009 and 12/31/2010 |
ASSETS | ||
2009 | 2010 | |
Cash | $200 | $150 |
Accounts receivable | 450 | 425 |
Inventory | 550 | 625 |
Current assets | $1,200 | $1,200 |
Plant and equipment | $2,200 | $2,600 |
Less accumulated depreciation | 1,000 | 1,200 |
Net plant and equipment | $1,200 | $1,400 |
Total assets | $2,400 | $2,600 |
LIABILITIES AND OWNERS' EQUITY | ||
2009 | 2010 | |
Accounts payable | $200 | $150 |
Notes payable--current (9%) | 0 | 150 |
Current liabilities | $200 | $300 |
Bonds | $600 | $600 |
Owners' equity | ||
Common stock | $900 | $900 |
Retained earnings | 700 | 800 |
Total owners' equity | $1,600 | $1,700 |
Total liabilities and owners' equity | $2,400 | $2,600 |
Pamplin Inc. Income Statement for Years Ending 12/31/2009 and 12/31/2010 |
2009 | 2010 | |||
Sales | $1,200 | $1,450 | ||
Cost of goods sold | 700 | 850 | ||
Gross profit | $500 | $600 | ||
Selling, general and administrative expenses | $30 | $40 | ||
Depreciation | 220 | 250 | 200 | 240 |
Operating income | $250 | $360 | ||
Interest expense | 50 | 64 | ||
Net income before taxes | $200 | $296 | ||
Taxes (40%) | 80 | 118 | ||
Net income | $120 | $178 |
. How much is the firm's net working capital and what is the debt ratio?
The net working capital is $_____ (Round to the nearest dollar.) The debt ratio is _____% (Round to one decimal place.)
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