se the following financial statements for Lake of Egypt Marina, Inc. LAKE OF EGY
ID: 2814202 • Letter: S
Question
se the following financial statements for
Lake of Egypt Marina, Inc. LAKE OF EGYPT MARINA, INC
Balance Sheet as of December 31, 2015 and 2014 (in millions of dollars)
2015 2014 2015 2014 Assets Liabilities and Equity Current assets: Current liabilities: Cash and marketable securities $ 45 $ 33 Accrued wages and taxes $ 40 $ 27 Accounts receivable 40 30 Accounts payable 35 24 Inventory 204 90 Notes payable 30 21 Total $ 289 $ 153 Total $ 105 $ 72 Fixed assets: Long term debt: 163 132 Gross plant and equipment $ 255 $ 165 Stockholders’ equity: Less: Depreciation 69 36 Preferred stock (3 million shares) $ 3 $ 3 Common stock and paid-in surplus (15 million shares) 15 15 Net plant and equipment $ 186 $ 129 Retained earnings 214 78 Other long-term assets 25 18 Total $ 211 $ 147 Total $ 232 $ 96 Total assets $ 500 $ 300 Total liabilities and equity $ 500 $ 300 LAKE OF EGYPT MARINA, INC. Income Statement for Years Ending December 31, 2015 and 2014 (in millions of dollars) 2015 2014 Net sales (all credit) $ 550 $ 350 Less: Cost of goods sold 220 133 Gross profits $ 330 $ 217 Less: Other operating expenses 44 28 Earnings before interest, taxes, depreciation, and amortization (EBITDA) 286 189 Less: Depreciation 33 21 Earnings before interest and taxes (EBIT) $ 253 $ 168 Less: Interest 33 28 Earnings before taxes (EBT) $ 220 $ 140 Less: Taxes 66 42 Net income $ 154 $ 98 Less: Preferred stock dividends $ 3 $ 3 Net income available to common stockholders $ 151 $ 95 Less: Common stock dividends 15 15 Addition to retained earnings $ 136 $ 80 Per (common) share data: Earnings per share (EPS) $ 10.067 $ 6.333 Dividends per share (DPS) $ 1.000 $ 1.000 Book value per share (BVPS) $ 15.267 $ 6.200 Market value (price) per share (MVPS) $ 15.650 $ 13.450
Calculate the following ratios for Lake of Egypt Marina, Inc. as of year-end 2015. (Use sales when computing the inventory turnover and use total equity when computing the equity multiplier. Round your answers to 2 decimal places. Use 365 days a year.)
times
I have Current Ratio - 2.75 times
Quick Ratio - .81 times
Cash Ratio - .43 times
but I get 1.49 Inventory Turnover and it claims it is wrong.
HELP with remaing information I need
Calculate the following ratios for Lake of Egypt Marina, Inc. as of year-end 2015. (Use sales when computing the inventory turnover and use total equity when computing the equity multiplier. Round your answers to 2 decimal places. Use 365 days a year.)
Explanation / Answer
Answer d.
Inventory Turnover = Sales / Inventory
Inventory Turnover = $550 / $204
Inventory Turnover = 2.70 times
Answer e.
Days’ Sales in Inventory = 365 / Inventory Turnover
Days’ Sales in Inventory = 365 / 2.70
Days’ Sales in Inventory = 135.19 days
Answer f.
Average Collection Period = 365 * Receivable / Sales
Average Collection Period = 365 * $40 / $550
Average Collection Period = 26.55 days
Answer g.
Average Payment Period = 365 * Accounts Payable / Cost of Goods Sold
Average Payment Period = 365 * $35 / $220
Average Payment Period = 58.07 days
Answer h.
Fixed Assets Turnover = Sales / Fixed Assets
Fixed Assets Turnover = $550 / $211
Fixed Assets Turnover = 2.61 times
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