Balance Sheet (Millions of $)
Cash and securities $ 2,500
Accounts receivable 11,500
Total current assets $30,000
Net plant and equipment $20,000
Net plant and equipment $20,000 Total assets $50,000
Liabilities and Equity
Accounts payable $9,500
Notes payable 7,000
Total current liabilities $22,000
Long-term bonds $15,000
Total debt $37,000
Common stock $2,000
Retained earnings 11,000
Total common equity $13,000
Total liabilities and equity $50,000
Income Statement (Millions of $) 2010
Net sales $87,500
Operating costs except depreciation 81,813
Earnings bef interest and taxes (EBIT) $4,156
Less interest 1,375
Earnings before taxes (EBT) $2,781
Net income $1,808
Shares outstanding (millions) 500.00
Common dividends $632.73
Int rate on notes payable & L-T bonds 6.25%
Federal plus state income tax rate 35%
Year-end stock price $43.39
i.What is the firm’s current ratio?
ii.What is the firm’s quick ratio?
iii.What is the firm’s “days sales outstanding” (DSO)? Assume a 365-day year for this calculation.
iv.What is the firm’s total assets turnover?
v.What is the firm’s inventory turnover ratio?
vi.What is the firm’s TIE?
vii.What is the firm’s debt/assets ratio?
viii.What is the firm’s ROA?
ix.What is the firm’s ROE?
x.What is the firm’s dividends per share?
xi.What is the firm’s EPS?
xii.What is the firm’s P/E ratio?
xiii.What is the firm’s book value per share?