Use the following information of Transylvania Railroad. • Long-term debt ratio:

Question

Use the following information of Transylvania Railroad.

• Long-term debt ratio: .5.

• Times-interest-earned: 5.0.

• Current ratio: 1.6.

• Quick ratio: 1.0.

• Cash ratio: .3.

• Inventory turnover: 6.5.

• Receivables collection period: 36.5 days.

• Tax rate = .4.

Work out the missing entries. (Enter your answers in millions. Do not round intermediate calculations. Round balance sheet answers to 1 decimal place and income statement answers to 2 decimal places.)

Income Statement ($ in millions)

Balance Sheet ($ in millions)

Sales Cost of goods sold Selling, general and admin expenses 16.00 Depreciation 33.00 EBIT Interest Earnings before tax Tax Earnings available for common stock

Explanation / Answer

Sales              521.50 Cost of goods sold              261.30 Selling, general and admin expenses 16 Depreciation 33 EBIT              211.20 Interest                42.24 Earnings before tax              168.96 Tax                67.58 Earnings available for common stock              101.38 Balance Sheet ($ in millions) 12-Dec 11-Dec Cash                  24.0 33 Account Receivable                  57.0 47.3 Inventory                  49.0 31.4 Total Current assets                130.0 111.7 Fixed assets, net                118.0 123 Total:                248.0 234.7 Notes payable                  43.0 21.3 Accounts Payable                  38.0 16.3 Total current liabilities                  81.0 37.6 Long-term debt                124.0 46.6 Equity                  43.0 150.5 Total:                248.0 234.7 Long term debt ratio=Long term debt/Total Asset=0.50 Total Asset =                         248 Long term debt =                         124 Current Ratio= Current Asset/Current Laib=                        1.60 Current Laibilities=                      81.00 Current Asset=                   129.60 Cash Ratio= Cash/ Current Liablities=0.30 Cash =                            24 Quick ratio=Current Asset-Inventroy/Current liab=1 Current Asset -Inventory =81 Inventory=                            49 Average Accounts receivable =(57+47.30)/2                      52.15 Receivable collection period=                      36.50 days Debtors Turnover =365/36.5                            10 Average Accounts receivable =sales /10                      52.15 Sales =                   521.50 Inventory Turn over                          6.50 Average Inventory=(49+31.4)/2                      40.20 Average Inventory =COGS/6.5=                      40.20 Cost of goods sold=                   261.30 TIE =5 Interest = EBIT /5=                      42.24

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