The Endot Manufacturing Company, a manufacturer and wholesaler of widgets, has provided you with the following financial information. The Company has asked you to make an analysis of the firm's financial condition. In addition to the information given below, you have been informed that the firm has no lease payments but has principal payments of $2 million per year on its Long-term debt. Endot uses a 365-day year in preparing its ratios. Endot has 5,000,000 common shares outstanding. Endot's financial statements are as follows: Cash Marketable Securities Accounts Receivable Balance Sheet as of December 31, 2014 (Millions of Dollars) Accounts Payable Notes Payable Other Current Liabilities Total Current Liabilities Inventory Total Current Assets Total Long Term Liabilities Total Liabilities 225 Gross Fixed Assets Less Depreciation Net Fixed Assets 78 114 201 147 Common Stock Retained Earnings Total Shareholder Equity Total Liabilities and Equity 315 Total Assets 450 450 Statement of Income and Expenses for Year Ended December 31, 2014 (Millions of Dollars) Net Sales 795.0 Costs of Goods Sold 660.0 Gross Profit 135.0 Fixed Expense 73.5 EBITDA 61.5 12.0 Depreciation Expense EBIT 49.5 4.5 Interest Expense EBT 45.0 18.0 Taxes (40%) Net Income 27.0 What was Endot's Fixed Asset Turnover Ratio? a. 3.53X b.5.41X c. 6.79% Od. 7.15X e. 8.00x The Endot Manufacturing Company, a manufacturer and wholesaler of widgets, has provided you with the following financial information. The Company has asked you to make an analysis of the firm's financial condition. In addition to the information given below, you have been informed that the firm has no lease payments but has principal payments of $2 million per year on its Long-term debt. Endot uses a 365-day year in preparing its ratios. Endot has 5,000,000 common shares outstanding. Endot's financial statements are as follows: Cash Marketable Securities Accounts Receivable Balance Sheet as of December 31, 2014 (Millions of Dollars) Accounts Payable Notes Payable Other Current Liabilities Total Current Liabilities Inventory Total Current Assets Total Long Term Liabilities Total Liabilities 225 Gross Fixed Assets Less Depreciation Net Fixed Assets 78 114 201 147 Common Stock Retained Earnings Total Shareholder Equity Total Liabilities and Equity 315 Total Assets 450 450 Statement of Income and Expenses for Year Ended December 31, 2014 (Millions of Dollars) Net Sales 795.0 Costs of Goods Sold 660.0 Gross Profit 135.0 Fixed Expense 73.5 EBITDA 61.5 12.0 Depreciation Expense EBIT 49.5 4.5 Interest Expense EBT 45.0 18.0 Taxes (40%) Net Income 27.0 What was Endot's Fixed Asset Turnover Ratio? a. 3.53X b.5.41X c. 6.79% Od. 7.15X e. 8.00x
