Question 25 3 pts (Question 25-32) Jamie Chung was recently hired as a financial analyst by Hightech Corporation, a manufacturer of electronic components. Her first task was to conduct a financial analysis of the firm covering the last two years. To begin, she gathered the following financial statements and other data. 2019 Balance Sheets Assets Cash Accounts receivable Inventories Total current assets Gross fixed assets Less accumulated depreciation Net fixed assets $ $ $ $ 52,000 402,000 836,000 1,290,000 527,000 166,200 360,800 1,650,800 Income Statements Sales Cost of goods sold Other expenses Depreciation Total operating costs EBI 2019 $ 3,850,000 $ (3,250,000) $ (430,300) $ (20,000) $ 3,700,300 $ 149,700 $ (76,000) $ 73,700 $ (29,480) $ 44,220 $ 0.44 $ $ $ Interest expense EBT Taxes (40%) Net income $ $ EPS $ $ Total assets Liabilities and Equity Accounts payable Notes payable Accruals Total current liabilities Long-term debt Common stock (100,000 shares) 460,000 Retained earnings Total equity Total liabilities and equity [ 175,200 225,000 140,000 540,200 424,612 $ $ $ $ 225,988 685,988 1,650,800 $ 2019 $6.00 100,000 Ratio Current Other Data December 31 stock price Number of shares Dividends per share Industry Average 2.7x Quick 1.0x 6.0x $0.22 Lease payments $40,000 32.0 days 10.7x Inventory turnover Days sales outstanding (DSO) Fixed assets turnover Total assets turnover Debt ratio TIE Fixed charge coverage Net profit margin ROA ROE Pricelearnings Market/book 2.6x 50.0% 2.5x 2.1x 3.5% 9.1% 18.2% 14.2x 1.4x 25. What is Hightech's inventory turnover in 2019? (Used the end of year inventory number, not the average) O b. 5.8x O e. 2.5x O c. 3.9x O d. 4.8x O a. 8.0x 26. What can you conclude Hightech's inventory management compared to the industry average? O c. The company manages inventory poorly because its inventory turnover is higher than industry. O a. The company manages inventory efficiently because its inventory turnover is higher than industry. O d. There inventory ratio is same as the industry. O b. The company hold excess inventory and some inventory might be obsolete. O e. None of the above. Question 27 3 pts 27. What is Hightech's times-interest-earned(TIE) in 2019? O e. 6.0x O a. 2.0x O b. 3.0x O c. 4.0x O d. 5.0x Question 28 3 pts 28. What is Hightech's debt ratio in 2019? O d. 58.45% O c. 72.92% O e. 60.50% O a. 50.85% O b. 40.83% Question 29 3 pts 29. Which of the statement is not correct about Hightech's debt ratio and times-interest-earned in 2019? O b. Creditors have supplied more than a half the firm's total financing. O d. The company's times-interest-earned is higher than industry, the firm is in better position to pay its interest due. O c. The company would find it difficult to borrow additional funds at a reasonable cost. O a. The company's debt ratio is higher than the industry average. 30. What is Hightech's profit margin in 2019? O b. 2.64% O c. 3.52% O d. 2.53% e. -1.5% O a. 1.15% Question 31 3 pts 31. What is Hightech's Price earnings(P/E) ratio in 2019? b. 13.6 O a. 15.2 c. 5.52 O d. 10.53 O e. -1.5
