Multi-Part 3-1: The balance sheet and income statement shown below are for Petti
ID: 2663881 • Letter: M
Question
Multi-Part 3-1:The balance sheet and income statement shown below are for Pettijohn 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 2010
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 and Equity
Accounts payable $ 7,980.0
Notes payable 5,880.0
Accruals 4,620.0
Total current liabilities $18,480.0
Long-term bonds 10,920.0
Total debt $29,400.0
Common stock 3,360.0
Retained earnings 9,240.0
Total common equity $12,600.0
Total liabilities and equity $42,000.0
Income Statement (Millions of $) 2010
Net sales $58,800.0
Operating costs except depr'n $54,978.0
Depreciation $ 1,029.0
Earnings bef int and taxes (EBIT) $ 2,793.0
Less interest 1,050.0
Earnings before taxes (EBT) $ 1,743.0
Taxes $ 610.1
Net income $ 1,133.0
Other data:
Shares outstanding (millions) 175.00
Common dividends $ 509.83
Int rate on notes payable & L-T bonds 6.25%
Federal plus state income tax rate 35%
Year-end stock price $ 77.69
What is the firm's current ratio?
What is the firm's days sales outstanding? Assume a 360-day year for this calculation.
What is the firm's total assets turnover?
What is the firm's EBITDA coverage?
What is the firm's debt ratio?
What is the firm's ROA (return on total asset)?
What is the firm's ROE (return on common equity)?
What is the firm's BEP?
What is the firm's profit margin?
What is the firm's dividends per share?
What is the firm's cash flow per share?
What is the firm's EPS?
What is the firm's P/E ratio?
What is the firm's book value per share?
What is the firm's market-to-book ratio?
What is the firm's equity multiplier?
Explanation / Answer
current ratio = current assets/current liabilities = 24654/18480 = 1.33
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