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Based on the attached balanced sheet and income statement, Computate the ratios and complete the table below Ratio Analysis 2021 Est. 2020 2019 Industry Average Liquidity Ratios         Current Ratio (times)       4.2 Quick Ratio (times)       2.1           Asset Management Ratios         Average sales/day       9 Inventory Turnover Ratio (times)       9 Days Sales Outstanding (days)       36 Fixed Assets Turnover Ratio (times)       3 Total Asset Turnover Ratio       1.8           Debt Management Ratios         Total Debt to Total Assets (%)       40 Times Interest Earned (times)       6 Debt to Equity Ratio (%)       1           Profitability Ratios         Profit Margin on Sales (%)       8 Earning Power (%)       17.2 Return on Total Assets (%)       12 Return on Common Equity (%)       25           Market Value Ratios Price/Earnings Ratio         Price/Earnings Ratio (times)       12.5 Price/Cash Flow Ratio (times)       6.8 Market /Book Value Ratio (times)       1.7

Based on the attached balanced sheet and income statement, Computate the ratios and complete the table below Ratio Analysis 2021 Est. 2020 2019 Industry Average Liquidity Ratios         Current Ratio (times)       4.2 Quick Ratio (times)       2.1           Asset Management Ratios         Average sales/day       9 Inventory Turnover Ratio (times)       9 Days Sales Outstanding (days)       36 Fixed Assets Turnover Ratio (times)       3 Total Asset Turnover Ratio       1.8           Debt Management Ratios         Total Debt to Total Assets (%)       40 Times Interest Earned (times)       6 Debt to Equity Ratio (%)       1           Profitability Ratios         Profit Margin on Sales (%)       8 Earning Power (%)       17.2 Return on Total Assets (%)       12 Return on Common Equity (%)       25           Market Value Ratios Price/Earnings Ratio         Price/Earnings Ratio (times)       12.5 Price/Cash Flow Ratio (times)       6.8 Market /Book Value Ratio (times)       1.7

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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Based on the attached balanced sheet and income statement,

Computate the ratios and complete the table below

Ratio Analysis

2021

Est.

2020

2019

Industry Average

Liquidity Ratios

 

 

 

 

Current Ratio (times)

 

 

 

4.2

Quick Ratio (times)

 

 

 

2.1

 

 

 

 

 

Asset Management Ratios

 

 

 

 

Average sales/day

 

 

 

9

Inventory Turnover Ratio (times)

 

 

 

9

Days Sales Outstanding (days)

 

 

 

36

Fixed Assets Turnover Ratio (times)

 

 

 

3

Total Asset Turnover Ratio

 

 

 

1.8

 

 

 

 

 

Debt Management Ratios

 

 

 

 

Total Debt to Total Assets (%)

 

 

 

40

Times Interest Earned (times)

 

 

 

6

Debt to Equity Ratio (%)

 

 

 

1

 

 

 

 

 

Profitability Ratios

 

 

 

 

Profit Margin on Sales (%)

 

 

 

8

Earning Power (%)

 

 

 

17.2

Return on Total Assets (%)

 

 

 

12

Return on Common Equity (%)

 

 

 

25

 

 

 

 

 

Market Value Ratios Price/Earnings Ratio

 

 

 

 

Price/Earnings Ratio (times)

 

 

 

12.5

Price/Cash Flow Ratio (times)

 

 

 

6.8

Market /Book Value Ratio (times)

 

 

 

1.7
BnB Construction Inc. Income Statement (Millions of Dollars) 2021 Est. 2020 2019 Net Sales 4,000 3,000 2,850 Operating Costs 3,100 2,300 2,100 ЕBITD 900.00 700 750 Depreciation 110 100 90 Amortizaton Depreciation and Amortization 110 100 90 EBITD 790 600 660 Interest 100 88 60 Earnings Before Taxes 690 512 600 Taxes (40%) Net Income Before preferred Dividends 276 204.8 240 414 307.2 360 Preferred Dividends 4 4 4 Net Income $ 410.0 $ 303.2 $ 356.0 Common Dividends 57.5 57.5 53 Addition to retained Earnings $ 352.50 $ 245.70 $ 303.0 Per Share Date 2021 2020 2019 Common Stock Price 28.0 $ 23.00 $ 26.00 Earnings Per Share (EPS) ??? $ 6.06 $ 7.12 1.15 $ Dividend Per Share (DPS) Book Value Per Share (BVPS) ???? 1.06 ???? $ 21.72 16.80 Cash Flow Per Share ???? $ 8.06 $ 8.92
Transcribed Image Text:BnB Construction Inc. Income Statement (Millions of Dollars) 2021 Est. 2020 2019 Net Sales 4,000 3,000 2,850 Operating Costs 3,100 2,300 2,100 ЕBITD 900.00 700 750 Depreciation 110 100 90 Amortizaton Depreciation and Amortization 110 100 90 EBITD 790 600 660 Interest 100 88 60 Earnings Before Taxes 690 512 600 Taxes (40%) Net Income Before preferred Dividends 276 204.8 240 414 307.2 360 Preferred Dividends 4 4 4 Net Income $ 410.0 $ 303.2 $ 356.0 Common Dividends 57.5 57.5 53 Addition to retained Earnings $ 352.50 $ 245.70 $ 303.0 Per Share Date 2021 2020 2019 Common Stock Price 28.0 $ 23.00 $ 26.00 Earnings Per Share (EPS) ??? $ 6.06 $ 7.12 1.15 $ Dividend Per Share (DPS) Book Value Per Share (BVPS) ???? 1.06 ???? $ 21.72 16.80 Cash Flow Per Share ???? $ 8.06 $ 8.92
BnB Construction Inc. Balance Sheet (Millions of Dollars) 2021 2021 Assets 2020 2019 Liabilities 2020 2019 Est Est Cash and Cash 15 10 15 Accounts payable 115 60 30 Equivalents Short-Term 10 65 Overdrafts 115 110 60 investments Accounts Receivable 420 375 315 Accruals 260 140 130 Inventories 700 615 415 Total Current Liabilities 490 310 220 Long-Term Bonds and Total Current Assets 1,145 1,000 810 1300 754 580 New Loan Net Plant and 1884 1,190 870 Total Debt 1790 1,064.00 800 Equipment Preferred Stock 40 40 40 Common Stock 130 130 130 Retained Earnings 1069 956 710 Total Common Equity 1199 1086 840 $ $ $ Total Liabilities and $ $ $ Total Assets 3,029 2,190 1,680 Equity 3,029 2,190 1,680 Est. Estimate %24
Transcribed Image Text:BnB Construction Inc. Balance Sheet (Millions of Dollars) 2021 2021 Assets 2020 2019 Liabilities 2020 2019 Est Est Cash and Cash 15 10 15 Accounts payable 115 60 30 Equivalents Short-Term 10 65 Overdrafts 115 110 60 investments Accounts Receivable 420 375 315 Accruals 260 140 130 Inventories 700 615 415 Total Current Liabilities 490 310 220 Long-Term Bonds and Total Current Assets 1,145 1,000 810 1300 754 580 New Loan Net Plant and 1884 1,190 870 Total Debt 1790 1,064.00 800 Equipment Preferred Stock 40 40 40 Common Stock 130 130 130 Retained Earnings 1069 956 710 Total Common Equity 1199 1086 840 $ $ $ Total Liabilities and $ $ $ Total Assets 3,029 2,190 1,680 Equity 3,029 2,190 1,680 Est. Estimate %24
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