12/31/2013 Current Assets XX Fixed Assets XX Total Assets 8000 Current Liabiliti
ID: 2659982 • Letter: 1
Question
12/31/2013
Current Assets XX
Fixed Assets XX
Total Assets 8000
Current Liabilities 1000
Long Term Debt XX
CommonEquity 3000
Total XX
2013
Sales XX
COGS XX
Dep 900
EBIT XX
Interest XX
EBT XX
Taxes XX
Net Income 600
Dividends were 500, Capital Expenditures were 1,500, Ending Stock Price was $18 per share and there were 500 shares outstanding. Taxes are 40% of EBT.
2012 2012
Current Ratio 2 Profit Margin 5%
Debt Ratio XX ROA 7.5%
Times Int. Ern 5 BEP XX
FATO XX P/E XX
TATO 1.5 M/B 3
1.What is the firm's Fixed Asset Turnover Ratio?
2.
What is the firm's Interest Expense?
3.What is the firm's Price Earnings Ratio?
4.How much did the firm have in Fixed Assets at the end of the previous year (12/31/2012)?
Explanation / Answer
WORKING NOTES:
1.
Total Assets = Total Liabilities = 8000
2.
Total Liabilities = Current Liabilities + Long Term Debt + CommonEquity
8000 = 1000 + Long Term Debt + 3000
Long Term Debt = 4000
3.
Current Ratio = Current Assets / Current Liabilities
2 = Current Assets / 1000
Current Assets = 2000
4
Total Assets = Fixed Assets + Current Assets
8000 = Fixed Assets + 2000
Fixed Assets = 6000
5
Let the EBT be
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.