Question: The balance sheet and income statement shown below are for Byrd Inc, and the data are to be used for questions 31 through 49 .
The balance sheet and income statement shown
below are for Byrd Inc, and the
data are to be used for questions
31
through
49
. Note that the firm has no
amortization charges, it does not lease any assets, and none of its debt must
be retired during the
next 5 years (notes payable will be rolled over).
BALANCE SHEET
Cash
$ 140.0
Accounts payable
$ 800.0
Accts. receivable
880.0
Notes payable
600.0
Inventories
1,320.0
Accruals
400.0
Total current assets
$2,340.0
Total current liabilities
$1,800.0
Long
-
term bonds
1,000.0
Total debt
$2,800.0
Common stock (50,000 shares)
200.0
Retained earnings
1,000.0
Net plant & equip.
1,660.0
Total common equity
$1,200.0
Total assets
$4,000.0
Total liabilities & equity
$4,000.0
INCOME STATEMENT
Net sales
$ 6,000.0
Operating costs
5,599.8
Depreciation
100.2
EBIT
$ 300.0
Less: Interest
96.0
EBT
$ 204.0
Less: Taxes
81.6
Net income
$ 122.4
OTHER DATA
Shares outstanding (millions)
60.00
Common dividends
$42.8
Interest rate on N/P and long
-
term bonds
6.0%
Federal plus state income tax rate
40%
Year
-
end stock price
$30.60
What is the firm's total assets turnover?
A. 1.10
B. 1.40
C. 1.20
D. 1.30
E. 1.50
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