Southeast Systems has the following balance sheet and the income statement. The company had 10 million shares of common stock outstanding and its market price of the common stock was $78 at the end of 2014. Make sure the unit is in million dollars. (unit: $ in millions) Southeast Systems Balance Sheets 2013 2014 2013 2014 Cash $50 $100 Accounts payable $450 $500 Accounts receivable 600 700 Notes payable 300 400 Inventory 500 550 Long-term debt 650 650 Net fixed assets 1,000 1,000 Common equity 300 300 Retained earnings 450 500 Total Assets $2,150 $2,350 Total Liabilities & Owner’s Equity $2,150 $2,350 Income Statement 2014 Sales $2,370 Cost of goods sold 2,070 Depreciation 200 EBIT 100 Interest expenses 20 Taxable income 80 Taxes 28 Net income $52 Dividends $2 (1) What is the value of the interest coverage ratio for 2014? (2) What is the value of the days in inventory for 2014?
QUESTION 6
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Southeast Systems has the following
balance sheet and the income statement. The company had 10 million shares of common stock outstanding and its market price of the common stock was $78 at the end of 2014. Make sure the unit is in million dollars.(unit: $ in millions)
Southeast Systems
Balance Sheets
2013
2014
2013
2014
Cash
$50
$100
Accounts payable
$450
$500
Accounts receivable
600
700
Notes payable
300
400
Inventory
500
550
Long-term debt
650
650
Net fixed assets
1,000
1,000
Common equity
300
300
Retained earnings 450
500
Total Assets
$2,150
$2,350
Total Liabilities & Owner’s Equity
$2,150
$2,350
Income Statement
2014
Sales
$2,370
Cost of goods sold
2,070
Depreciation 200
EBIT
100
Interest expenses
20
Taxable income
80
Taxes
28
Net income
$52
Dividends
$2
(1) What is the value of the interest coverage ratio for 2014?
(2) What is the value of the days in inventory for 2014?
Ratio analysis is used for comparison of financial statements between two entities or with in the entity. Ratio analysis is used to measure financial performance of the comany.
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