P&B Manufacturing Comparative Balance Sheet (dollars in millions) Current assets: Cash and cash equivalents Accounts Receivable Inventory Total current assets Property, plant and equipment Less accumulated depreciation Net property, plant and equipment Total assets Current liabilities: Accounts payable Accrued liabilities Income taxes payable Total current liabilities Bonds payable Total liabilities Assets Ending Balance Beginning Balance P&B Manufacturing Income Statement For Year Ended December 31 (dollars in millions) Sales 65 91 Cost of goods sold 530 572 Gross Margin 600 580 Selling and administrative expenses 1,195 1,243 Net operating income 1,719) 1,656 Nonoperating items: Gain on sale of equipment 640 480 Income before taxes 1,079 1,176 Income taxes 2,274 2,419 Net Income Liabilities and Stockholders' Equity 180 180 94 105 72 88 346 373 180 310 526 683 Stockholders' equity: Common stock 800 800 Retained earnings 948 936 Total stockholders' equity 1,748 1,736 Total liabilities and stockholders' equity 2.274 2,419 4,450 3,550 900 820 80 4 84 29 55 P&B Manufacturing also provided the following information: 1 The company sold equipment that had an original cost of $15 million and accumulated depreciation of $9 million. The cash proceeds from the sale were $11 million. The gain on the sale was $4 million. 2 The company did not issue any new bonds during the year 3 The company paid a cash dividend during the year 4 The company did not complete any common stock transactions during the year To assess the liquidity at the end of the year calculate Current Ratio and Acid-test (quick). Round your answers to 2 decimal places-for example 5.67 Requirement #2a Calculate the Current Ratio But your final answer in this box Requirement #2b Calculate the Acid-text (quick) ratio But your final answer in this box To assess asset management calculate Average collection period and Average sale period. Round your answers to 2 decimal places-for example 5.67 Requirement #3a Calculate Average collection period-assume all sales are on account But your final answer in this box Requirement #3b Calculate Average sale period-use 365 days in a year. Round intermediate calculations and final answers to 2 decimal places But your final answer in this box To assess debt management calculate Debt-to-Equity ratio at the end of the year and Equity Multiplier. Round your calculations & answers to 2 decimal places-for example 15.67/16.78 Requirement #4a Calculate Debt-to-Equity ratio But your final answer in this box Requirement #4b Calculate Equity multiplier But your final answer in this box To assess profitability calculate Net Profit Margin Percentage and Return on Equity. Round your calculations & answers to 2 decimal places-for example 5.67/6.78=.83 Requirement #5a Calculate Net profit margin percentag. Both 5a and 5b are to be expressed as a percent. Research if you are unsure how to express a number as a percent. But your final answer in this box Requirement #5b Calculate Return on equity percentage But your final answer in this box To assess market performance, calculate Earnings Per Share and Dividend Payout Ratio. Assume the par value of the company's common stock is $10 per share Round your calculations & answers to 2 decimal places-for example 5.67/6.78=.83 Requirement #6a Calculate Earnings per share. Express in dollars and cents But your final answer in this box To assess market performance, calculate Earnings Per Share and Dividend Payout Ratio. Assume the par value of the company's common stock is $10 per share Round your calculations & answers to 2 decimal places-for example 5.67/6.78=.83 Requirement #6a Calculate Earnings per share. Express in dollars and cents But your final answer in this box Requirement #6b Calculate Dividend payout ratio - express in a percent. Assume the par value of the company's common stock is $10 per share But your final answer in this box