Question
Use the following financial statements for Lake of Egypt Marina, Inc. LAKE OF EGYPT MARINA, INC.Balance Sheet as of December 31, 2018 and 2017(in millions
Use the following financial statements for Lake of Egypt Marina, Inc.
LAKE OF EGYPT MARINA, INC.Balance Sheet as of December 31, 2018 and 2017(in millions of dollars)2018201720182017AssetsLiabilities and EquityCurrent assets:Current liabilities:Cash and marketable securities$80$60Accrued wages and taxes$88$40Accounts receivable7245Accounts payable9645Inventory278165Notes payable10460Total$430$270Total$288$145Fixed assets:Long-term debt:$256$193Gross plant and equipment$416$270Stockholders' equity:Less: Depreciation8670Preferred stock (2 million shares)$2$2Net plant and equipment$330$200Common stock and paid-in surplus3030(30 million shares)Other long-term assets4030Retained earnings224130Total$370$230Total$256$162Total assets$800$500Total liabilities and equity$800$500
LAKE OF EGYPT MARINA, INC.Income Statement for Years Ending December 31, 2018 and 2017(in millions of dollars)20182017Net sales (all credit)$400$200Less: Cost of goods sold16070Gross profits$240$130Less: Other operating expenses2012Earnings before interest, taxes, depreciation, and amortization (EBITDA)220118Less: Depreciation168Earnings before interest and taxes (EBIT)$204$110Less: Interest2410Earnings before taxes (EBT)$180$100Less: Taxes5430Net income$126$70Less: Preferred stock dividends$2$2Net income available to common stockholders$124$68Less: Common stock dividends3030Addition to retained earnings$94$38Per (common) share data:Earnings per share (EPS)$4.133$2.267Dividends per share (DPS)$1.000$1.000Book value per share (BVPS)$8.467$5.333Market value (price) per share (MVPS)$15.750$13.550
Calculate the following ratios for Lake of Egypt Marina, Inc. as of year-end 2018.(Use sales when computing the inventory turnover and use total equity when computing the equity multiplier. Round your answersto 2 decimal places. Use 365 days a year.)
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