Profitability Ratios Sue's Crops, Inc.'s 2013 income statement listed net sales = $100,000, EBIT = $20,000, net income available to common stockholders = $8,000, and common stock dividends = $2,000. The 2013 year-end balance sheet listed total assets = $400,000, and common stockholders equity = $300,000 with 3,000 shares outstanding. Calculate the profit margin, basic earnings power ratio, ROA, ROE, and dividend payout ratio. Show all calculations. Market Value Ratios You are considering an investment in Taylor's Hot Rods, Corp. During the last year the firm's income statement listed addition to retained earnings = $2.5 million and common stock dividends = $1.2 million. Taylor's year-end balance sheet shows common stockholders' equity = $10 million with 2 million shares of common stock outstanding. The common stock's market price per share = $45.00. What is Taylor's Hot Rods' book value per share and earnings per share? Calculate the market-to-book ratio and PE ratio. Show all calculations. Ratio Analysis Use the following information to complete a balance sheet. Current ratio = 3 Current liabilities = 5 million Credit sales = 25 million Average collection period = 30 Inventory turns = 8 Total asset turns = 0.75 Debt ratio = 45 percent Sustainable Growth Rate You are considering investing in Annie's Eatery. You have been able to locate the following information on the firm: total assets are $50 million, accounts receivable are $6.0 million, ACP is 20 days, net income is $5.5 million, debt-to-equity is 2.5 times, and dividend payout ratio is 55 percent. All sales are on credit. Annie's is considering loosening its credit policy such that ACP will increase to 25 days. The change is expected to increase credit sales by 5 percent. Any change in accounts receivable will be offset with a change in debt. No other balance sheet changes are expected. Annie's profit margin and dividend payout ratio will remain unchanged. Use the DuPont equation to determine how this change in accounts receivable policy will affect Annie's sustainable growth rate. Show all calculations. Internal Growth Rate Last year, Marly Brown, Inc., reported an ROE of 30 percent. The firm's debt-to-equity was 2.50 times, sales were $20 million, the capital intensity was 1.5 times, and dividends paid to common stockholders were $500,000. The firm has no preferred stock outstanding. This year, Marly Brown plans to decrease its debt-to-equity ratio to 2.00 times. The change will not affect sales, total assets, or dividends paid, however, it will reduce the firm's profit margin to 10 percent. Use the DuPont equation to determine how the change in Marly Brown's debt ratio will affect its internal growth rate. Show all calculations. Debt Management Ratios Calculate the times interest earned ratio for Paige's Purses, Inc. using the following information: sales = $50,000,000, cost of goods sold = $15,000,000, depreciation expense = $2,000,000, addition to retained earnings = $10,000,000, dividends per share = $1.10, tax rate = 30 percent, and number of shares of common stock outstanding = 10,000,000. Paige's Purses has no preferred stock outstanding. Show all calculations. Liquidity and Asset Management Ratios Green Products, Inc. has current liabilities = $40 million, current ratio = 2.4 times, inventory turnover ratio = 8 times, average collection period = 40 days, and sales = $320 million. What is the value of their cash and marketable securities? Show all calculations