Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

q. Profit Margin r. Gross profit margin s. Operating profit margin t. Basic earnings power Use the following financial statements for Lake of Egypt Marina,

image text in transcribedimage text in transcribedq. Profit Margin

r. Gross profit margin

s. Operating profit margin

t. Basic earnings power

Use the following financial statements for Lake of Egypt Marina, Inc. 2021 2020 Assets Current assets: Cash and marketable securities Accounts receivable Inventory Total Fixed assets: Gross plant and equipment Less: Depreciation Net plant and equipment LAKE OF EGYPT MARINA, INC. Balance Sheet as of December 31, 2021 and 2020 (in millions of dollars) 2021 2020 Liabilities and Equity Current liabilities: $ 75 $ 65 Accrued wages and taxes 115 110 Accounts payable 200 190 Notes payable $390 $365 Total Long-term debt: $580 $471 Stockholders' equity: 110 100 Preferred stock (5 million shares) $470 $371 Common stock and paid-in surplus (65 million shares) 50 49 Retained earnings $520 $420 Total $910 $785 Total liabilities and equity $ 40 90 80 $210 $300 $ 43 80 70 $193 $280 $ 5 $ 5 Other long-term assets Total Total assets 65 330 $400 $910 65 242 $312 $ 785 2020 432 175 257 25 $ $ LAKE OF EGYPT MARINA, INC. Income Statement for Years Ending December 31, 2021 and 2020 (in millions of dollars) 2021 Net sales (all credit) $ 515 Less: Cost of goods sold 230 Gross profits $ 285 Less: Other operating expenses 30 Earnings before interest, taxes, depreciation, and amortization (EBITDA) $ 255 Less: Depreciation 22 Earnings before interest and taxes (EBIT) $ 233 Less: Interest 33 Earnings before taxes (EBT) $ 200 Less: Taxes 42 Net income $ 158 Less: Preferred stock dividends $ 5 Net income available to common stockholders $ 153 Less: Common stock dividends 65 Addition to retained earnings 88 Per (common) share data: Earnings per share (EPS) $ 2.354 Dividends per share (DPS) $ 1.000 Book value per share (BVPS) $ 6.077 Market value (price) per share (MVPS) $14.750 232 20 212 30 182 55 $ 127 5 $ $ 122 65 57 $ $ 1.877 $ 1.000 $ 4.723 $12.550 Calculate the following ratios for Lake of Egypt Marina, Inc. as of year-end 2021. (Use sales when computing the inventory turnover and use total stockholders' equity when computing the equity multiplier. Round your answers to 2 decimal places. Use 365 days a year.)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Finance questions

Question

5. Draw an abstract syntax tree for !(a20

Answered: 1 week ago