The balance sheet and income statement shown below are for Kryloc Inc. You will

Question

The balance sheet and income statement shown below are for Kryloc Inc. You will find
that the firm has no amortization charges. It also does not lease any assets and none of
its debt must be retired during the next 5 years. The notes payable will be rolled over.
Balance Sheet (Millions of $)
Assets 2010
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 (Millions of $) 2010
Net sales $87,500
Operating costs except depreciation 81,813
Depreciation 1,531
Earnings bef interest and taxes (EBIT) $ 4,156
Less interest 1,375
Earnings before taxes (EBT) $ 2,781
Taxes 973
Net income $ 1,808

Other data:
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%
___________________________________________________________________________
What I have to solve are the following:

? What is the firm's current ratio?
? What is the firm's quick ratio?
? What is the firm's “days sales outstanding” (DSO)? Assume a 365-day year for
this calculation.
? What is the firm's total assets turnover?
? What is the firm's inventory turnover ratio?
? What is the firm's TIE?
? What is the firm's debt/assets ratio?
? What is the firm's ROA?
? What is the firm's ROE?
? What is the firm's dividends 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?
Year-end stock price $43.39

I apologize as I do not know how to make or transfer a table/excel sheet over, and I am completely stuck on this scenario. I am having a hard time understanding this part of Financial Analysis. Your Expert Knowledge and Help would be greatly appreciated!

Explanation / Answer

Current ratio: Current ratio = Current assets/Current liabillities = $30,000 million/$22,000 million = 1.36: 1 Quick ratio: Quick rario = (Cash+accounts receivables+shorterm investments)/Current liabilities = (2,500 + 11,500) million/22,000 million = 14,000 million/22,000 million = 0.64 : 1 Day's sales outstanding: Day's sales outstanding = (Accounts receivanbles/Total credi sales)*No. of days = ($2,500/$87,500)*365 = 10.43 days Total assets turnover ratio: Total asset turnover ratio = Net sales/Total assets = $87,500 million/50,000 million = 1.75 Inventory turnover ratio: Inventory turnover ratio = Sales/Inventory = $87,500 million/16,000 millio = 5.47 : 1 Timed interest earned(TIE): Times interest earned = (Net income + Interest)/Interest = ($1,808 million + $1,375)/$1,375 = 2.42:1 Debt to assets ratio: Debt to asset ratio = Total debt/Total assets = $37 million/$50,000 million = 0.74 :1 Return on assets(ROA): Return on assets = Net income/Total assets = $1,808 million/$50,000 million = 0.03616 : 1 Return on equity(RoE): Return on equity = Net income/Sharehoders' equity = $1,808 million/$13,000 million = 0.13:1 Dividend per share: Dividend per share = Dividends/No.of shares outstanding = $632.73 million / 500 million = $1.26 Earning per share(EPS): Earning per share = Net income/No.of shares outstanding = $1,808 million/500 million = $3.616 P/E ratio: Price earning ratio = Market price per share/Earning per share Market price per share = Total value of equity/No.of shares = $43.29/3.616 = 11.97 Book value per share: Book value per share = (Total shareholders' equity - Preferred equity)/No.of shares = ($13,000 million - $11,000 million)/500 million = 2,000/500 = $4 Market-book ratio: Market - Book ratio = Book value of the firm/Market value of the firm

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