Shares outstanding (millions) 180.00 Common dividends (Millions of $) $ 505.72 Int rate on notes payable & L-T bonds 6.00% Federal plus state income tax rate 39% Year-end stock price
Shares outstanding (millions) 180.00 Common dividends (Millions of $) $ 505.72 Int rate on notes payable & L-T bonds 6.00% Federal plus state income tax rate 39% Year-end stock price
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter11: The Statement Of Cash Flows
Section: Chapter Questions
Problem 63.2C: Income, Cash Flow, and Future Losses On January L 2017, Cermack National Bank loaned 55,000,000...
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Exhibit 8.1
Thebalance sheet and income statement shown below are for Pettijohn Inc. Note that the firm has no amortization charges, it does not lease any assets, none of its debt must be retired during the next 5 years, and the notes payable will be rolled over.
Refer to Exhibit 8.1. What is the firm's quick ratio?
The
Balance Sheet (Millions of $) | |
Assets |
2012
|
Cash and securities |
$ 1,588.0
|
Accounts receivable |
9,510.0
|
Inventories |
13,700.0
|
Total current assets |
$24,798.0
|
Net plant and equipment |
15,272.0
|
Total assets |
$40,070.0
|
Liabilities and Equity | |
Accounts payable |
$ 7,420.0
|
Notes payable |
5,030.0
|
Accruals |
4,030.0
|
Total current liabilities |
$16,480.0
|
Long-term bonds |
10,320.0
|
Total debt |
$26,800.0
|
Common stock |
3,720.0
|
9,550.0
|
|
Total common equity |
$13,270.0
|
Total liabilities and equity |
$40,070.0
|
Income Statement (Millions of $) |
2012
|
Net sales |
$59,700.0
|
Operating costs except depr'n |
$54,318.0
|
$ 1,229.0
|
|
Earnings bef int and taxes (EBIT) |
$ 4,153.0
|
Less interest |
249.2
|
Earnings before taxes (EBT) |
$ 3,903.8
|
Taxes |
$ 1,522.5
|
Net income |
$ 2,381.3
|
Other data: | |
Shares outstanding (millions) |
180.00
|
Common dividends (Millions of $) |
$ 505.72
|
Int rate on notes payable & L-T bonds |
6.00%
|
Federal plus state income tax rate |
39%
|
Year-end stock price |
$77.05
|
Refer to Exhibit 8.1. What is the firm's quick ratio?
Group of answer choices
0.55
0.93
0.79
0.67
1.11
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