Scenario 1 The financial statements and data shown below are to be used for the next three (3) questions. All figures are in millions except the tax rate and the year-end stock price. BALANCE SHEET Cash $ 140.0 Accounts payable $ 800.0 Accts. receivable 880.0 Notes payable 600.0 Inventories 1,320.0 Accruals 400.0 Total current assets $2,340.0 Total current liabilities $1,800.0 Long-term bonds 1,000.0 Total debt $2,800.0 Common stock 200.0 Retained earnings 1,000.0 Net plant & equip. 1,660.0 Total common equity $1,200.0 Total assets $4,000.0 Total liabilities & equity $4,000.0 INCOME STATEMENT Net sales $6,000.0 Operating costs 5,599.8 Depreciation 100.2 EBIT $ 300.0 Less: Interest 96.0 EBT $ 204.0 Less: Taxes 81.6 Net income $ 122.4 OTHER DATA Shares outstanding 60.00 Common dividends $42.8 Federal plus state income tax rate 40% Year-end stock price $30.60 Use Scenario 1 to answer the questions. What is the firm's quick ratio? What is the firm’s P/E ratio?
Scenario 1 The financial statements and data shown below are to be used for the next three (3) questions. All figures are in millions except the tax rate and the year-end stock price. BALANCE SHEET Cash $ 140.0 Accounts payable $ 800.0 Accts. receivable 880.0 Notes payable 600.0 Inventories 1,320.0 Accruals 400.0 Total current assets $2,340.0 Total current liabilities $1,800.0 Long-term bonds 1,000.0 Total debt $2,800.0 Common stock 200.0 Retained earnings 1,000.0 Net plant & equip. 1,660.0 Total common equity $1,200.0 Total assets $4,000.0 Total liabilities & equity $4,000.0 INCOME STATEMENT Net sales $6,000.0 Operating costs 5,599.8 Depreciation 100.2 EBIT $ 300.0 Less: Interest 96.0 EBT $ 204.0 Less: Taxes 81.6 Net income $ 122.4 OTHER DATA Shares outstanding 60.00 Common dividends $42.8 Federal plus state income tax rate 40% Year-end stock price $30.60 Use Scenario 1 to answer the questions. What is the firm's quick ratio? What is the firm’s P/E ratio?
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
Problem 1PS
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Scenario 1
The financial statements and data shown below are to be used for the next three (3) questions. All figures are in millions except the tax rate and the year-end stock price.
| Cash | $ 140.0 | Accounts payable | $ 800.0 | |
| Accts. receivable | 880.0 | Notes payable | 600.0 | |
| Inventories | 1,320.0 | Accruals | 400.0 | |
| Total current assets | $2,340.0 | Total current liabilities | $1,800.0 | |
| Long-term bonds | 1,000.0 | |||
| Total debt | $2,800.0 | |||
| Common stock | 200.0 | |||
| 1,000.0 | ||||
| Net plant & equip. | 1,660.0 | Total common equity | $1,200.0 | |
| Total assets | $4,000.0 | Total liabilities & equity | $4,000.0 | |
| INCOME STATEMENT | ||||
| Net sales | $6,000.0 | |||
| Operating costs | 5,599.8 | |||
| |
100.2 | |||
| EBIT | $ 300.0 | |||
| Less: Interest | 96.0 | |||
| EBT | $ 204.0 | |||
| Less: Taxes | 81.6 | |||
| Net income | $ 122.4 | |||
| OTHER DATA |
|
|||
| Shares outstanding | 60.00 |
|
||
| Common dividends | $42.8 |
|
||
| Federal plus state income tax rate | 40% |
|
||
| Year-end stock price | $30.60 |
Use Scenario 1 to answer the questions.
What is the firm's quick ratio?
What is the firm’s P/E ratio?
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