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The balance sheet and income statement shown below are for Pettijohn Inc. Note that the firm has no amortization charges, it does not lease any

The balance sheet and income statement shown below are for Pettijohn 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.

Tax rate

40%

Stock price

$17.00

Shares outstanding

3,800,000

Dividends are 50% of net income

Income Statement

Period Ending

31-Dec-13

Total Revenue

148,239,000

COGS

118,094,000

Selling General and Administrative

13,384,000

Depreciation

72,000

Earnings Before Interest And Taxes

16,689,000

Interest Expense

829,000

Income Before Tax

15,860,000

Income Tax Expense (40%)

6,344,000

Net Income

9,516,000

Balance Sheet

Date

31-Dec-13

Assets

Current Assets

Cash

14,468,000

Net Receivables

98,359,000

Inventory

18,758,000

Total Current Assets

131,585,000

Property Plant and Equipment

70,441,000

Total Assets

202,026,000

Liabilities

Current Liabilities

Accounts Payable

22,446,500

Accruals

14,315,500

Notes Payable

3,631,000

Total Current Liabilities

40,393,000

Long Term Debt

134,919,000

Total Liabilities

175,312,000

Stockholders' Equity

Common Stock

40,000

Retained Earnings

26,674,000

Total Stockholder Equity

26,714,000

Total Assets

202,026,000

Question/Problem 1) Please show work

  1. What is the firm's current ratio?
  2. What is the firm's days-sales-outstanding (DSO)? Assume a 360-day year for this calculation.
  3. What is the firm's total assets turnover?
  4. What is the firm's inventory turnover ratio?

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