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You are given original financial statements of an industrial company as follows. Balance Sheet (in Millions, except for Per-Share Data) Year Ended 31 December 2008
You are given original financial statements of an industrial company as follows.
Balance Sheet (in Millions, except for Per-Share Data) | ||
Year Ended 31 December | ||
2008 | 2007 | |
Assets | ||
Current assets | ||
Cash and equivalents | 372 | 315 |
Accounts receivable | 770 | 711 |
Inventory | 846 | 780 |
Total current assets | 1,988 | 1,806 |
Gross fixed assets | 4,275 | 3,752 |
Accumulated depreciation | -1,176 | -906 |
Net fixed assets | 3,099 | 2,846 |
Total assets | 5,087 | 4,652 |
Liabilities and shareholders' equity Current liabilities | ||
Accounts payable | 476 | 443 |
Accrued taxes and expenses | 149 | 114 |
Short-term debt | 465 | 450 |
Total current liabilities | 1,090 | 1,007 |
Long-term debt | 1,575 | 1,515 |
Common stock | 525 | 525 |
Retained earnings | 1,897 | 1,605 |
Total shareholders' equity | 2,422 | 2,130 |
Total liabilities and shareholders' equity | 5,087 | 4,652 |
Statement of Income Year Ended 31 December 2008 | |
Sales | 3,323 |
Cost of goods sold | 1,287 |
SG&A expenses | 858 |
EBITDA | 1,178 |
Depreciation | 270 |
Operating income (EBIT) | 908 |
Net interest expense | 195 |
Income before tax | 713 |
Taxes | 228 |
Net income | 485 |
Statutorty tax rate | 35% |
Calculate the following financial ratios in 2008, based on the original financial statements. State your answers to the following in 2 decimal places:
Quick ratio is ____
Debt-to-equity ratio is ____
Operating profit margin is ____
Inventory turnover is ____
Times interest earned is ____
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