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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
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) | ||||||||||||||||
2018 | 2017 | 2018 | 2017 | |||||||||||||
Assets | Liabilities and Equity | |||||||||||||||
Current assets: | Current liabilities: | |||||||||||||||
Cash and marketable securities | $ | 72 | $ | 30 | Accrued wages and taxes | $ | 40 | $ | 30 | |||||||
Accounts receivable | 104 | 50 | Accounts payable | 80 | 55 | |||||||||||
Inventory | 184 | 150 | Notes payable | 48 | 50 | |||||||||||
Total | $ | 360 | $ | 230 | Total | $ | 168 | $ | 135 | |||||||
Fixed assets: | Long-term debt: | $ | 320 | $ | 181 | |||||||||||
Gross plant and equipment | $ | 504 | $ | 305 | Stockholders equity: | |||||||||||
Less: Depreciation | 104 | 65 | Preferred stock (4 million shares) | $ | 4 | $ | 4 | |||||||||
Net plant and equipment | $ | 400 | $ | 240 | Common stock and paid-in surplus | 50 | 50 | |||||||||
(50 million shares) | ||||||||||||||||
Other long-term assets | 40 | 30 | Retained earnings | 258 | 130 | |||||||||||
Total | $ | 440 | $ | 270 | Total | $ | 312 | $ | 184 | |||||||
Total assets | $ | 800 | $ | 500 | Total liabilities and equity | $ | 800 | $ | 500 | |||||||
LAKE OF EGYPT MARINA, INC.
Income Statement for Years Ending December 31, 2018 and 2017 | |||||||
(in millions of dollars) | |||||||
2018 | 2017 | ||||||
Net sales (all credit) | $ | 650 | $ | 400 | |||
Less: Cost of goods sold | 247 | 168 | |||||
Gross profits | $ | 403 | $ | 232 | |||
Less: Other operating expenses | 52 | 24 | |||||
Earnings before interest, taxes, depreciation, and amortization (EBITDA) | 351 | 208 | |||||
Less: Depreciation | 39 | 20 | |||||
Earnings before interest and taxes (EBIT) | $ | 312 | $ | 188 | |||
Less: Interest | 52 | 28 | |||||
Earnings before taxes (EBT) | $ | 260 | $ | 160 | |||
Less: Taxes | 78 | 48 | |||||
Net income | $ | 182 | $ | 112 | |||
Less: Preferred stock dividends | $ | 4 | $ | 4 | |||
Net income available to common stockholders | $ | 178 | $ | 108 | |||
Less: Common stock dividends | 50 | 50 | |||||
Addition to retained earnings | $ | 128 | $ | 58 | |||
Per (common) share data: | |||||||
Earnings per share (EPS) | $ | 3.560 | $ | 2.160 | |||
Dividends per share (DPS) | $ | 1.000 | $ | 1.000 | |||
Book value per share (BVPS) | $ | 6.160 | $ | 3.600 | |||
Market value (price) per share (MVPS) | $ | 14.850 | $ | 12.650 | |||
Construct the DuPont ROA and ROE breakdowns for Lake of Egypt Marina, Inc. (Do not round intermediate calculations. Round your answers to 2 decimal places.) DUPont Analysis ROA _____% * _____times = _______% ROE______% * _____times * ________times =________%
ROA= Profit margin * Total asset turnover ROE= ROA * Equity Multiplier
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