7 ANALYSIS OF FINANCIAL STATEMENTS 3.13 9. Calculate the market value ratios, that is, the price/earnings ratio, the price/cash flow ratio, and the market/book value ratio. Roberts had an average of 10,000 shares outstanding during 2000, and the stock price on December 31, 2000, was $40.00. a. 4.21; 2.00; 0.36 b. 3.20; 1.75; 1.54 c. 3.20; 2.44; 0.36 d. 4.76; 2.44; 1.54 e. 4.76; 2.44; 0.36 ANALYSES GEFORCIAL STATEMENT 3.12 Roberts Manufacturing Income Statement for Year Ended December 31, 2000 (Dollars in Thousands) $2.400 $1,000 600 89 65 80 Sales Cost of goods sold: Materials Labor Heat, light, and power Indirect labor Depreciation Gross profit Selling expenses General and administrative expenses Earnings before interest and taxes (EBIT) Interest expense Earnings before taxes (EBT) Taxes (40%) Net income (NT) 1.834 $ 566 175 216 $ 175 35 $ 140 56 $_84 5. Calculate the liquidity ratios, that is, the current ratio and the quick ratio. 2. 1.20; 0.60 b. 1.20; 0.80 1.44:0.60 d. 1.44; 0.80 1.60; 0.60 Calculate the asset management ratios, that is, the inventory tumover ratio, fixed assets turnover, total assets turnover, and days sales outstanding, 6. 3.84; 2.00; 1.06; 36.75 days b. 3.84; 2.00; 1.06; 35.25 days c. 3.84; 2.00; 1.06; 34.10 days d. 3.84: 2.00; 1.24; 34.10 days e. 3.84;2.20; 1.48; 34.10 days 7. Calculate the debt management ratios, that is, the debt and times-interest-earned ratios. a. 0.39; 3.16 b. 0.39; 5.00 c. 0.51; 3.16 d. 0.51; 5.00 e. 0.73; 3.16 8. Calculate the profitability ratios, that is, the profit margin on sales, return on total asset return on common equity, and basic earning power of assets. a. 3.50%; 4.25%; 7.60%; 8.00% b. 3.50%; 3.70%; 7.60%; 7.71% c. 3.70%; 3.50%; 7.60%; 7.71% d. 3.70%; 3.50%; 8.00%; 8.00% e. 4.25%; 3.70%; 7.60%; 8.00% Cash Receivables Inventory Total current assets Net fixed assets Roberts Manufacturing Balance Sheet December 31, 2000 (Dollars in Thousands) $ 200 Accounts payable 245 Notes payable 625 Other current liabilities $1,070 Total current liabilities 1,200 Long-term debt Common equity $2.270 Total liabilities and equity $ 205 425 115 $ 745 420 1,105 $2,270 Total assets