20 Points The Clark W Grizwald Holiday Company reported the following financial

ID: 2438145 • Letter: 2

Question

20 Points The Clark W Grizwald Holiday Company reported the following financial information for its most recent fiscal year: Income Statement, for Fiscal Year 2013 Complete the following table: (in millions) Revenues $2,500 Return on assets Cost of goods sold $1,000 Return on equity Selling, general, and administrative expenses $255 Gross profit margin Earnings before interest and taxes $1,245 Net profit margin Interest expense $75 Equity multiplier Earnings before taxes $1,170 Dividend yield Taxes $75 Debt-equity ratio Net income $1,095 Days sales outstanding Inventory turnover Balance Sheet, as of December 31, 2013 Receivables turnover (in millions) Cash and cash equivalents $65 Accounts receivable $55 Inventory $195 Net plant, property, and equipment $1,250 Intangible assets $100 Total assets $1,665 Current liabilities $165 Long-term debt $500 Shareholders' equity $1,350 Total liabilities and shareholders' equity $2,015 Additonal information available for the company is also available: (in millions) Market value of equity $700 Market value of debt $400 Dividends $30 Number of shares outstanding 10 20 Points The Clark W Grizwald Holiday Company reported the following financial information for its most recent fiscal year: Income Statement, for Fiscal Year 2013 Complete the following table: (in millions) Revenues $2,500 Return on assets Cost of goods sold $1,000 Return on equity Selling, general, and administrative expenses $255 Gross profit margin Earnings before interest and taxes $1,245 Net profit margin Interest expense $75 Equity multiplier Earnings before taxes $1,170 Dividend yield Taxes $75 Debt-equity ratio Net income $1,095 Days sales outstanding Inventory turnover Balance Sheet, as of December 31, 2013 Receivables turnover (in millions) Cash and cash equivalents $65 Accounts receivable $55 Inventory $195 Net plant, property, and equipment $1,250 Intangible assets $100 Total assets $1,665 Current liabilities $165 Long-term debt $500 Shareholders' equity $1,350 Total liabilities and shareholders' equity $2,015 Additonal information available for the company is also available: (in millions) Market value of equity $700 Market value of debt $400 Dividends $30 Number of shares outstanding 10

Explanation / Answer

Return on assets (Net income x 100/ Total assets)

65.76576577

(1095 x 100/1665)

Return on equity (Net income x 100/ Equity shareholders' fund)

81.11111111

(1095 x 100/1350)

Gross profit margin (Gross profit x 100/ Revenue)

Gross profit (sales - Cost of goods sold)

1500

Revenue

2500

Net profit margin (Net income x 100/Revenue)

43.8

(1095 x 100/2500)

Equity multiplier (Total assets / Stockholders' equity)

1.233333333

(1665 / 1350)

Dividend yield (Dividend x 100/ Market value of equity)

4.285714286

(30 x 100/700)

Debt equity ratio (Debt fund / Equity fund)

0.37037037

(500/1350)

Days sales outstanding (Accounts receivable x 365 / Revenue)

2.2

(55 x 365/ 2500)

Inventory turnover (Revenue / Inventory)

12.82 times

(2500/195)

Receivables turnover (Revenue / Receivables)

45.45 times

(2500/55)