Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Take a look at this balance sheet and income statement: Balance Sheet (all numbers are in $ million unless stated otherwise) Current Assets Current Liabilities

Take a look at this balance sheet and income statement:

Balance Sheet (all numbers are in $ million unless stated otherwise)

Current Assets Current Liabilities

Cash 98 Accounts Payable 344

A/C Receivable 188 Notes Payable 196

Inventory 422

Total 708 Total 540

Fixed Assets Long-Term Liabilities

Net PPE 2880 Long-Term Debt 457

Common Stock and Paid-In Surplus 550

Retained Earnings 2041

Total Assets 3588 Total Liabilities + Net Worth 3588

Income Statement (all numbers are in $ million unless stated otherwise)

Sales 2311

Cost of Goods Sold 1344

Depreciation 276

EBIT 691

Interest Paid to Bondholders 141

Taxable Income (EBT) 550

Taxes @ 34 percent 187

Net Income 363

Based on this balance sheet and income statement, please compute the following ratios:

Quick Ratio?

Total Debt Ratio?

Interest Coverage Ratio?

Collection Period?

Inventory Turnover?

Profitability?

ROA?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored 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

Recommended Textbook for

Using Microsoft Excel And Access 20 For Accounting

Authors: Glenn Owen

5th Edition

133751229X, 9781337512299

More Books

Students also viewed these Accounting questions