QUESTION 8

The balance sheet and income statement shown below are for Koski Inc. Note that the firm has no amortization charges, it does not lease any assets, none of its debt must be retired during the next 5 years, and the notes payable will be rolled over. Balance Sheet (Millions of $) Assets 2016 Cash and marketable securities $2,245 Accounts receivable 9,870 Inventories 10,480 Total current assets $22,595 Net plant and equipment $65,405 Total assets $88,000 Liabilities and Equity Accounts payable $10,410 Accruals 8,290 Notes payable 2,816 Total current liabilities $21,516 Long-term bonds $32,800 Total liabilities $54,316 Common stock $5,104 Retained earnings 28,580 Total common equity $33,684 Total liabilities and equity $88,000 Income Statement (Millions of $) 2016 Net sales $85,500 Operating costs except depreciation 64,980 Depreciation 9,024 Earnings before interest and taxes (EBIT) $11,496 Less interest 2226 Earnings before taxes (EBT) $9,270 Taxes 3244.50 Net income $6,025.50 Other data: Shares outstanding (millions) 500.00 Common dividends (millions of $) $843.63 Int rate on notes payable & L-T bonds 6.25% Federal plus state income tax rate 35% Year-end stock price $205.42

Please calculate the following ratios of the firm (Do not round your intermediate calculations): f. TIE g. ROA h. ROE i. Debt-to-Assets j. Debt-to-Capital k. Profit Margin l. BEP m. ROIC n. Operating Margin o. DPS p. EPS q. P/E r. Market-to-Book s. EM