Balance Sheet(millions) Current Assets Current Liabilities Cash $ 104 Accounts P

Question

Balance Sheet(millions) Current Assets Current Liabilities Cash $       104 Accounts Payable $       232 Accounts Receivable 455 Notes Payable 196 Inventory 553 Total $     1,112 Total $       428 Fixed Assests Net Plant and Equipment $     1,644 Long Term Debt $       408 Owners' Equity Common Stock 600 Retained Earnings 1320 Total Common Equity $     1,920 Total Liabiliies and Total Assets $     2,756 Owners Equity $     2,756 Income Statement (millions) Other Information Sales $     1,509 Cash Flow $       477 Million Cost of Goods Sold 750 Depreciation 65 Number of Share 76.8 Million Earning Before Interest Current Share Price $     78.62 Per Share and Taxes (EBIT) $       694 Interest Expense 70 Taxable Income $       624 Taxes 212 Net Income $       412 Liquidity Ratios Current Current Assests/Current Liabilites Quick (CA - Inventories)/Current Liabilites Asset Management Inventory Turnover Sales / Inventories DSO Receivables/ (sales/365) Fixed Asset Turnover Sales/ Net Fixed Assests Total Asset Turnover Sales/Total Assets Debt Management Total Debt to Total Asset Total Debt/Total Assests Times Interest Earned EBIT/Interest Expense Profitability Profit Margin on Sales Net Income/Sales Return on Assests Net Income/Total Assets Basic Earning Power EBIT/Total Assets Return on Equity Net Income/Common Equity Market Value Price Earnings Ratio Price of Shares/Earning Per Share Price/cash flow Price of Shares/Cash Flow per Share Market/Book Market Price/Book Value (Per Share) Balance Sheet(millions) Current Assets Current Liabilities Cash $       104 Accounts Payable $       232 Accounts Receivable 455 Notes Payable 196 Inventory 553 Total $     1,112 Total $       428 Fixed Assests Net Plant and Equipment $     1,644 Long Term Debt $       408 Owners' Equity Common Stock 600 Retained Earnings 1320 Total Common Equity $     1,920 Total Liabiliies and Total Assets $     2,756 Owners Equity $     2,756 Income Statement (millions) Other Information Sales $     1,509 Cash Flow $       477 Million Cost of Goods Sold 750 Depreciation 65 Number of Share 76.8 Million Earning Before Interest Current Share Price $     78.62 Per Share and Taxes (EBIT) $       694 Interest Expense 70 Taxable Income $       624 Taxes 212 Net Income $       412

Explanation / Answer

x.j5 Liquidity Ratios: Current Ratio = [Current Assets / Current Liabilities] Current Assets = [Cash + Accounts Receivable + Inventory] Current Assets = [$104 + $455 + $553] Current Assets = $1,112 Current Liabilities = [Accounts Payable + Notes Payable] Current Liabilities = [$232 + $196] Current Liabilities = $428 Current Ratio = [$1,112 / $428] Current Ratio = 2.60 : 1 Quick Ratio = [(Current Assets - Inventory) / Current Liabilities] Quick Ratio = [($1,112 - $553) / $428] Quick Ratio = [$559 / $428] Quick Ratio = 1.31 : 1 Asset Management: Inventory Turnover = [Sales / Inventories] Inventory Turnover = [$1,509 / $553] Inventory Turnover = 2.73 times DSO = [Receivables / (Sales/365days)] DSO = [$455 / ($1,509/365)] DSO = [$455 / 4.1342] DSO = 110.06

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