ASSIGNMENT 2 BUSINESS FINANCE FIN 3200 10 Points KUIPERS ENTERPRISES 2018 Income Statement ($ in millions! Sales Cost of goods sold Depreciation EBIT Interest paid Taxable income Taxas (34%) Net income Addition to retained earnings Dividends 600 $9,000 4.500 700 $3,800 600 $3,200 1,088 $2,112 $1,512 KUIPERS ENTERPRISES Balance Sheets as of December 31, 2017 and 2018 ($ in millions) 2017 2018 2017 2018 $ 650 $ 679 400 Assets Current assets Cash Receivables Inventory Total Fixed assets Net plant and equipment $ 404 1,115 2,870 4389 $ 247 1,616 4,225 6,088 250 1.244 Liabilities and Owners' Equity Current liabilities Accounts payable Notes payable Other Total Long-term debt Owners' equity Common stock Capital surplus Retained earnings Total 1,329 3,150 3,400 -8,452 8,100 500 1,300 6.397 500 1,300 7,909 9,709 $14,188 Total $12,841 $14,188 8,197 $12,841 0.85 Calculating Financial Ratios. calculate the following financial ratios for KUIPERS ETERPRISES for 2018 Bench Mark these ratios (use Ind Ave) Short-term solvency ratios IND. AVE a. Current ratio b. Quick ratio c. Cash ratio 0.24 Asset utilization ratios d. Total asset tumover e. Inventory turnover f. Receivables turnover Long-term solvency ratios 0.50 8. Total debt ratio sch. Debt-equity ratio 2.00 Equity multiplier 3 . Times interest earned ratio k. Cash coverage ratio Profitability ratiose 2. Profit margin m. Return on assets 10.5% n. Return on equity 1.00 16.5