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28 Sep 2019
The balance sheet and income statement shown below are for OLD Inc.Note that the firm has no amortization charges, it does not leaseany assets, none of its debt must be retired during the next 5years, and the notes payable will be rolled over.
Balance Sheet (in millions)
Assets
Cash and securities 2,500
Accounts receivable 11,500
Inventories 16,000
Total current assets 30,000
Net plant and equipment 20,000
Total Assets 50,000
Liabilities and Equity
Accounts payable 9,500
Notes payable 7,000
Accruals 5,500
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 (in millions):
Net sales 87,500
Operating costs expect depreciation 81,813
Depreciation 1,531
EBIT 4,156
Less Interest 1,375
EBT 2,781
Taxes 973
net Income 1,808
Other Data:
Shares outstanding (millions) 500
Common dividends $632.73
Int rate on notes payable & LT bonds 6.25%
Federal plus state income tax rate 35%
Year-end stock price $43.39
1. Whatâs the firmâs Debit Ratio?
2. Whatâs the firmâs ROA?
3. Whatâs the firmâs ROE?
4. Whatâs the firmâs BEP?
5. Whatâs the firmâs Profit Margin?
6. Whatâs the firmâs Operating Margin?
The balance sheet and income statement shown below are for OLD Inc.Note that the firm has no amortization charges, it does not leaseany assets, none of its debt must be retired during the next 5years, and the notes payable will be rolled over.
Balance Sheet (in millions)
Assets
Cash and securities 2,500
Accounts receivable 11,500
Inventories 16,000
Total current assets 30,000
Net plant and equipment 20,000
Total Assets 50,000
Liabilities and Equity
Accounts payable 9,500
Notes payable 7,000
Accruals 5,500
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 (in millions):
Net sales 87,500
Operating costs expect depreciation 81,813
Depreciation 1,531
EBIT 4,156
Less Interest 1,375
EBT 2,781
Taxes 973
net Income 1,808
Other Data:
Shares outstanding (millions) 500
Common dividends $632.73
Int rate on notes payable & LT bonds 6.25%
Federal plus state income tax rate 35%
Year-end stock price $43.39
1. Whatâs the firmâs Debit Ratio?
2. Whatâs the firmâs ROA?
3. Whatâs the firmâs ROE?
4. Whatâs the firmâs BEP?
5. Whatâs the firmâs Profit Margin?
6. Whatâs the firmâs Operating Margin?
Balance Sheet (in millions)
Assets
Cash and securities 2,500
Accounts receivable 11,500
Inventories 16,000
Total current assets 30,000
Net plant and equipment 20,000
Total Assets 50,000
Liabilities and Equity
Accounts payable 9,500
Notes payable 7,000
Accruals 5,500
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 (in millions):
Net sales 87,500
Operating costs expect depreciation 81,813
Depreciation 1,531
EBIT 4,156
Less Interest 1,375
EBT 2,781
Taxes 973
net Income 1,808
Other Data:
Shares outstanding (millions) 500
Common dividends $632.73
Int rate on notes payable & LT bonds 6.25%
Federal plus state income tax rate 35%
Year-end stock price $43.39
1. Whatâs the firmâs Debit Ratio?
2. Whatâs the firmâs ROA?
3. Whatâs the firmâs ROE?
4. Whatâs the firmâs BEP?
5. Whatâs the firmâs Profit Margin?
6. Whatâs the firmâs Operating Margin?
Beverley SmithLv2
28 Sep 2019