Question
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
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 $) 2021 Assets Cash and securities $ 4,900 Accounts receivable 17,500 Inventories 19,600 Total current assets $ 42,000 Net plant and equipment 28,000 Total assets $ 70,000 Liabilities and Equity Accounts payable $ 22,632 Accruals 10,168 Notes payable 8,000 Total current liabilities $ 40,800 Long-term bonds 11,000 Total liabilities $ 51,800 Common stock 4,004 Retained earnings 14,196 Total common equity $ 18,200 Total liabilities and equity $ 70,000 Income Statement (Millions of $) 2021 Net sales $ 112,000 Operating costs except depreciation 104,160 Depreciation 2,240 Earnings before interest and taxes (EBIT) $ 5,600 Less interest 1,140 Earnings before taxes (EBT) $ 4,460 Taxes (25%) 1,115 Net income $ 3,345 Other data: Shares outstanding (millions) 500.00 Common dividends (millions of $) $1,170.75 Int. rate on notes payable & L-T bonds 6% Federal plus state income tax rate 25% Year-end stock price $80.28 What is the firm's total assets turnover? Do not round your intermediate calculations.
a. 2.67 b. 1.60 c. 2.22 d. 2.35 e. 2.75
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