Question
Luther Corporation Consolidated Balance Sheet December 31, 2009 and 2008 (in $ millions) Assets 2009 2008 Liabilities and Stockholders' Equity 2009 2008 Current Assets Current
Luther Corporation Consolidated Balance Sheet December 31, 2009 and 2008 (in $ millions) |
Assets | 2009 | 2008 |
| Liabilities and Stockholders' Equity | 2009 | 2008 |
Current Assets |
|
|
| Current Liabilities |
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|
Cash | 63.6 | 58.5 |
| Accounts payable | 87.6 | 73.5 |
Accounts receivable | 55.5 | 39.6 |
| Notes payable / short-term debt | 10.5 | 9.6 |
Inventories | 45.9 | 42.9 |
| Current maturities of long-term debt | 39.9 | 36.9 |
Other current assets | 6.0 | 3.0 |
| Other current liabilities | 6.0 | 12.0 |
Total current assets | 171.0 | 144.0 |
| Total current liabilities | 144.0 | 132.0 |
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|
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Long-Term Assets |
|
|
| Long-Term Liabilities |
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Land | 66.6 | 62.1 |
| Long-term debt | 239.7 | 168.9 |
Buildings | 109.5 | 91.5 |
| Capital lease obligations | --- | --- |
Equipment | 119.1 | 99.6 |
| Total Debt | 239.7 | 168.9 |
Less accumulated depreciation | (56.1) | (52.5) |
| Deferred taxes | 22.8 | 22.2 |
Net property, plant, and equipment | 239.1 | 200.7 |
| Other long-term liabilities | --- | --- |
Goodwill | 60.0 | -- |
| Total long-term liabilities | 262.5 | 191.1 |
Other long-term assets | 63.0 | 42.0 |
| Total liabilities | 406.5 | 323.1 |
Total long-term assets | 362.1 | 242.7 |
| Stockholders' Equity | 126.6 | 63.6 |
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Total Assets | 533.1 | 386.7 |
| Total liabilities and Stockholders' Equity | 533.1 | 386.7 |
Consider the Luther Corporation income statement, balance sheet and other information :
Luther's return on equity (ROE) for the year ending December 31, 2009 is closest to:
a. 2.0%
b. 6.5%
c. 8.4%
d. 12.7%
Assuming that Luther has no convertible bonds outstanding, then for the year ending December 31, 2009 Luther's diluted earnings per share are closest to:
a. $1.01
b. $1.04
c. $1.28
d. $1.33
Luther's Operating Margin for the year ending Dec 31, 2008 is closest to:
a. 0.5%
b. 0.7%
c. 5.4%
d.6.8%
When using the book value of equity, the debt to equity ratio for Luther in 2009 is closest to:
a. 0.43
b. 2.29
c. 2.98
d.3.57
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