Question
Use the following financial statements for Lake of Egypt Marina, Inc. LAKE OF EGYPT MARINA, INC. Balance Sheet as of December 31, 2021 and 2020
Use the following financial statements for Lake of Egypt Marina, Inc. LAKE OF EGYPT MARINA, INC. Balance Sheet as of December 31, 2021 and 2020 (in millions of dollars) 2021 2020 2021 2020 Assets Liabilities and Equity Current assets: Current liabilities: Cash and marketable securities $ 91 $ 28 Accrued wages and taxes $ 40 $ 32 Accounts receivable 50 36 Accounts payable 50 40 Inventory 140 132 Notes payable 50 32 Total $ 281 $ 196 Total $ 140 $ 104 Fixed assets: Long-term debt: $ 11 $ 124 Gross plant and equipment $ 300 $ 220 Stockholders equity: Less: Depreciation 75 40 Preferred stock (8 million shares) $ 8 $ 8 Net plant and equipment $ 225 $ 180 Common stock and paid-in surplus 60 60 (60 million shares) Other long-term assets 25 24 Retained earnings 312 104 Total $ 250 $ 204 Total $ 380 $ 172 Total assets $ 531 $ 400 Total liabilities and equity $ 531 $ 400 LAKE OF EGYPT MARINA, INC. Income Statement for Years Ending December 31, 2021 and 2020 (in
millions of dollars) 2021 2020 Net sales (all credit) $ 700 $ 500 Less: Cost of goods sold 210 140 Gross profits $ 490 $ 360 Less: Other operating expenses 49 30 Earnings before interest, taxes, depreciation, and amortization (EBITDA) 441 330 Less: Depreciation 35 25 Earnings before interest and taxes (EBIT) $ 406 $ 305 Less: Interest 56 35 Earnings before taxes (EBT) $ 350 $ 270 Less: Taxes 74 81 Net income $ 276 $ 189 Less: Preferred stock dividends $ 8 $ 8 Net income available to common stockholders $ 268 $ 181 Less: Common stock dividends 60 60 Addition to retained earnings $ 208 $ 121 Per (common) share data: Earnings per share (EPS) $ 4.467 $ 3.017 Dividends per share (DPS) $ 1.000 $ 1.000 Book value per share (BVPS) $ 6.200 $ 2.733 Market value (price) per share (MVPS) $ 15.050 $ 12.850 Calculate the following ratios for Lake of Egypt Marina, Inc., as of year-end 2021. (Use sales when computing the inventory turnover and use total equity when computing the equity multiplier. Round your answers to 2 decimal places. Use 365 days a year.)
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