Question
Q.333 The Endot Manufacturing Company, a manufacturer and wholesaler of widgets, has provided you with the following financial information. The Company has asked you to
Q.333 The Endot Manufacturing Company, a manufacturer and wholesaler of widgets, has provided you with the following financial information. The Company has asked you to make an analysis of the firms financial condition. In addition to the information given below, you have been informed that the firm has no lease payments but has principal payments of $2 million per year on its Long-term debt. Endot uses a 365-day year in preparing its ratios. Endot has 5,000,000 common shares outstanding. Endots financial statements are as follows:
Balance Sheet as of December 31, 2014 (Millions of Dollars)
Cash
45
Accounts Payable
45
Marketable Securities
33
Notes Payable
45
Accounts Receivable
66
Other Current Liabilities
21
Inventory
159
Total Current Liabilities
111
Total Current Assets
303
Total Long Term Liabilities
24
Total Liabilities
135
Gross Fixed Assets
225
Less Depreciation
78
Common Stock
114
Net Fixed Assets
147
Retained Earnings
201
Total Shareholder Equity
315
Total Assets
450
Total Liabilities and Equity
450
Statement of Income and Expenses for Year Ended December 31, 2014 (Millions of Dollars)
Net Sales
795.0
Costs of Goods Sold
660.0
Gross Profit
135.0
Fixed Expense
73.5
EBITDA
61.5
Depreciation Expense
12.0
EBIT
49.5
Interest Expense
4.5
EBT
45.0
Taxes (40%)
18.0
Net Income
27.0
What was Endot's Quick (Acid Test) Ratio?
a. 0.37
b. 1.30
c. 1.73
d. 2.00
e. 2.73
Q 388 The Endot Manufacturing Company, a manufacturer and wholesaler of widgets, has provided you with the following financial information. The Company has asked you to make an analysis of the firms financial condition. In addition to the information given below, you have been informed that the firm has no lease payments but has principal payments of $2 million per year on its Long-term debt. Endot uses a 365-day year in preparing its ratios. Endot has 5,000,000 common shares outstanding. Endots financial statements are as follows:
Balance Sheet as of December 31, 2014 (Millions of Dollars)
Cash
45
Accounts Payable
45
Marketable Securities
33
Notes Payable
45
Accounts Receivable
66
Other Current Liabilities
21
Inventory
159
Total Current Liabilities
111
Total Current Assets
303
Total Long Term Liabilities
24
Total Liabilities
135
Gross Fixed Assets
225
Less Depreciation
78
Common Stock
114
Net Fixed Assets
147
Retained Earnings
201
Total Shareholder Equity
315
Total Assets
450
Total Liabilities and Equity
450
Statement of Income and Expenses for Year Ended December 31, 2014 (Millions of Dollars)
Net Sales
795.0
Costs of Goods Sold
660.0
Gross Profit
135.0
Fixed Expense
73.5
EBITDA
61.5
Depreciation Expense
12.0
EBIT
49.5
Interest Expense
4.5
EBT
45.0
Taxes (40%)
18.0
Net Income
27.0
If Endot's common stock is currently selling for $104.49 per share, what is Endot's Price to Earnings Ratio?
a.
580.5X
b.
104.49X
c.
41.8X
d.
19.35X
e.
It is impossible to determine the P/E ratio from the information given
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Quantum Economics And Finance
Authors: David Orrell
3rd Edition
1916081630, 978-1916081635
