Question

QUESTION 8 The balance sheet and income statement shown below are for Koski Inc. Note that...

QUESTION 8

The balance sheet and income statement shown below are for Koski Inc. Note that the firm has no amortization charges, it does not lease any assets, none of its debt must be retired during the next 5 years, and the notes payable will be rolled over.
Balance Sheet (Millions of $)


Assets

2016
Cash and marketable securities

$2,245
Accounts receivable

9,870
Inventories

10,480
Total current assets

$22,595
Net plant and equipment

$65,405
Total assets

$88,000
Liabilities and Equity


Accounts payable

$10,410
Accruals

8,290
Notes payable

2,816
Total current liabilities

$21,516



Long-term bonds

$32,800
Total liabilities

$54,316
Common stock

$5,104
Retained earnings

28,580
Total common equity

$33,684
Total liabilities and equity

$88,000




Income Statement (Millions of $)

2016
Net sales

$85,500
Operating costs except depreciation
64,980
Depreciation

9,024
Earnings before interest and taxes (EBIT)
$11,496
Less interest

2226
Earnings before taxes (EBT)

$9,270

Taxes

3244.50
Net income

$6,025.50



Other data:


Shares outstanding (millions)

500.00

Common dividends (millions of $)

$843.63

Int rate on notes payable & L-T bonds
6.25%
Federal plus state income tax rate
35%
Year-end stock price

$205.42

Please calculate the following ratios of the firm (Do not round your intermediate calculations):
a. Current Ratio
b. Quick Ratio
c. DSO
d. TATO
e. Inventory Turnover
f. TIE
g. ROA
h. ROE
i. Debt-to-Assets
j. Debt-to-Capital
k. Profit Margin
l. BEP
m. ROIC
n. Operating Margin
o. DPS
p. EPS
q. P/E
r. Market-to-Book
s. EM

Homework Answers

Answer #1

a) Current Ratio: Current Assets / Current Lianbilities

: 22595/21516 = 1.0501

b) Quick Ratio: (Cash & marketable securities + Account Recievable) / Current Liabilities

: (2245 + 9870)/21516 = 0.5631

c) DSO( Days of sales outstanding: = (Accounts receivable/Credit Sales) x 365

= (9870/85500) x 365 = 42.14 days

d) TATO (Total Assets Turnover ratio = Sales / Total Assets

= 85500/88000 = 0.9716 times

e) Inventory Turnover : Cost of Goods Sold(or Sales) / Total Inventory

= 85500/10480 = 8.16 times

f) TIE (Times Interest Earned) = EBIT(operating Income) / Interest charges Payable

= 11496/2226 = 5.16 times

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
The balance sheet and income statement shown below are for Koski Inc. Note that the firm...
The balance sheet and income statement shown below are for Koski Inc. Note that the firm has no amortization charges, it does not lease any assets, none of its debt must be retired during the next 5 years, and the notes payable will be rolled over. Balance Sheet (Millions of $) Assets 2016 Cash and securities $2,145 Accounts receivable 8,970 Inventories 12,480 Total current assets $23,595 Net plant and equipment $15,405 Total assets $39,000 Liabilities and Equity Accounts payable $7,410...
The balance sheet and income statement shown below are for Koski Inc. Note that the firm...
The balance sheet and income statement shown below are for Koski Inc. Note that the firm has no amortization charges, it does not lease any assets, none of its debt must be retired during the next 5 years, and the notes payable will be rolled over. Balance Sheet (Millions of $) Assets 2016 Cash and securities $2,145 Accounts receivable 8,970 Inventories 12,480 Total current assets $23,595 Net plant and equipment $15,405 Total assets $39,000 Liabilities and Equity Accounts payable $7,410...
The balance sheet and income statement shown below are for Koski Inc. Note that the firm...
The balance sheet and income statement shown below are for Koski Inc. Note that the firm has no amortization charges, it does not lease any assets, none of its debt must be retired during the next 5 years, and the notes payable will be rolled over. Balance Sheet (Millions of $) Assets 2019 Cash and securities $4,200 Accounts receivable 17,500 Inventories 20,300 Total current assets $42,000 Net plant and equipment $28,000 Total assets $70,000 Liabilities and Equity Accounts payable $27,531...
The balance sheet and income statement shown below are for Koski Inc. Note that the firm...
The balance sheet and income statement shown below are for Koski Inc. Note that the firm has no amortization charges, it does not lease any assets, none of its debt must be retired during the next 5 years, and the notes payable will be rolled over. Balance Sheet (Millions of $)   Assets      2018 Cash and securities      $3,000 Accounts receivable      15,000 Inventories      18,000 Total current assets      $36,000 Net plant and equipment      $24,000 Total assets     ...
The balance sheet and income statement shown below are for Koski Inc. Note that the firm...
The balance sheet and income statement shown below are for Koski Inc. Note that the firm has no amortization charges, it does not lease any assets, none of its debt must be retired during the next 5 years, and the notes payable will be rolled over. Balance Sheet (Millions of $) Assets 2016 Cash and securities $2,145 Accounts receivable 8,970 Inventories 12,480 Total current assets $23,595 Net plant and equipment $15,405 Total assets $39,000 Liabilities and Equity Accounts payable $7,410...
Exhibit 4.1 The balance sheet and income statement shown below are for Koski Inc. Note that...
Exhibit 4.1 The balance sheet and income statement shown below are for Koski Inc. Note that the firm has no amortization charges, it does not lease any assets, none of its debt must be retired during the next 5 years, and the notes payable will be rolled over. Balance Sheet (Millions of $)   Assets      2018 Cash and securities      $3,000 Accounts receivable      15,000 Inventories      18,000 Total current assets      $36,000 Net plant and equipment      $24,000 Total...
Exhibit 4.1 The balance sheet and income statement shown below are for Koski Inc. Note that...
Exhibit 4.1 The balance sheet and income statement shown below are for Koski Inc. Note that the firm has no amortization charges, it does not lease any assets, none of its debt must be retired during the next 5 years, and the notes payable will be rolled over. Balance Sheet (Millions of $) Assets 2018 Cash and securities $3,000 Accounts receivable 15,000 Inventories 18,000 Total current assets $36,000 Net plant and equipment $24,000 Total assets $60,000 Liabilities and Equity Accounts...
The balance sheet and income statement shown below are for James Madison Inc. Note that the...
The balance sheet and income statement shown below are for James Madison Inc. Note that the firm has no amortization charges, it does not lease any assets, none of its debt must be retired during the next 5 years, and the notes payable will be rolled over. (SHOW YOUR WORK) Balance Sheet (Millions of $) Assets 2019 Cash and securities $ 1,554.0 Accounts receivable 9,660.0 Inventories 13,440.0 Total current assets $24,654.0 Net plant and equipment 17,346.0 Total assets $42,000.0 Liabilities...
The balance sheet and income statement shown below. Note that the firm has no amortization charges,...
The balance sheet and income statement shown below. Note that the firm has no amortization charges, it does not lease any assets, none of its debt must be retired during the next 5 years, and the notes payable will be rolled over. Balance Sheet (Millions of $) Assets 2019 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 Accruals 5,500...
The balance sheet and income statement shown below are for Big D Café: Balance Sheet (millions...
The balance sheet and income statement shown below are for Big D Café: Balance Sheet (millions of $) 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 debt                                                                15,000 Total liabilities                                                                   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 $) Sales                                                                                      87,500 Operating costs except...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT
Active Questions
  • Distinguish between the typical roles of geologist and engineers in dealing with groundwater problems. How do...
    asked 42 minutes ago
  • 5) A rock is thrown directly southeast (45 degrees to S and E), at an initial...
    asked 45 minutes ago
  • If 133.2 kJ of heat are added to 5.80 × 102 g of water at 22.0°C,...
    asked 46 minutes ago
  • true/false An unweighted path length measures the number of edges in a graph. Breadth first search...
    asked 55 minutes ago
  • Give an example of the effect of interest rate changes on a fixed coupon bond, what...
    asked 1 hour ago
  • Thirty-two small communities in Connecticut (population near 10,000 each) gave an average of x = 138.5...
    asked 1 hour ago
  • The value of the integral   ∫C(3x2+ycosx)dx+(sinx−4y3)dy∫C(3x2+ycos⁡x)dx+(sin⁡x−4y3)dy, where CC is an arbitrary path from A(−π,−1)A(−π,−1) to B(2π,1)B(2π,1),...
    asked 1 hour ago
  • the ordinates of a 6-h unit hydrograph for a particular catchment are 0,10,30,50,40,30,20,10 and 0 m3/s...
    asked 1 hour ago
  • Please solve this using R code Part 3: A particular item is handmade in two stages...
    asked 1 hour ago
  • Compare the American Cousnelors Association (ACA) code of ethics regarding conflict of interest to the National...
    asked 1 hour ago
  • A fisherman's scale stretches 3.2 cm when a 2.1 kg fish hangs from it. a) What...
    asked 1 hour ago
  • Compare the American Counselors Association (ACA) code of ethics regarding referral due to dual relationship possibility...
    asked 2 hours ago