The balance sheet and income statement shown below are for Koski 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. Balance Sheet (Millions of $) Assets Cash and securities Accounts receivable Inventories Total current assets Net plant and equipment Total assets Liabilities and Equity Accounts payable Accruals Notes payable Total current liabilities Long-term bonds Total liabilities Common stock Retained earnings Total common equity Total liabilities and equity Income Statement (Millions of $) Net sales Operating costs except depreciation Depreciation Earnings before interest and taxes (EBIT) Less interest Earnings before taxes (EBT) Taxes Net income Other data: Shares outstanding (millions) Common dividends (millions of $) Intrate on notes payable & L-T bonds Federal plus state income tax rate Year-end stock price 2019 $4,200 17,500 20,300 $42,000 $28,000 $70,000 $27,531 12,369 5,000 $44,900 $9,000 $53,900 $3,864 12,236 $16,100 $70,000 2019 $112,000 104,160 2,240 $5,600 840 $4,760 1,190 $3,570 500.00 $1249.50 6% 25% $68.54 Refer to Exhibit 4.1. What is the firm's days sales outstanding? Assume a 365-day year for this calculation. Do not round your intermediate calculations. O a. 51.90 O b. 59.88 O c. 42.77 O d. 57.03 08.66.16
The balance sheet and income statement shown below are for Koski 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. Balance Sheet (Millions of $) Assets Cash and securities Accounts receivable Inventories Total current assets Net plant and equipment Total assets Liabilities and Equity Accounts payable Accruals Notes payable Total current liabilities Long-term bonds Total liabilities Common stock Retained earnings Total common equity Total liabilities and equity Income Statement (Millions of $) Net sales Operating costs except depreciation Depreciation Earnings before interest and taxes (EBIT) Less interest Earnings before taxes (EBT) Taxes Net income Other data: Shares outstanding (millions) Common dividends (millions of $) Intrate on notes payable & L-T bonds Federal plus state income tax rate Year-end stock price 2019 $4,200 17,500 20,300 $42,000 $28,000 $70,000 $27,531 12,369 5,000 $44,900 $9,000 $53,900 $3,864 12,236 $16,100 $70,000 2019 $112,000 104,160 2,240 $5,600 840 $4,760 1,190 $3,570 500.00 $1249.50 6% 25% $68.54 Refer to Exhibit 4.1. What is the firm's days sales outstanding? Assume a 365-day year for this calculation. Do not round your intermediate calculations. O a. 51.90 O b. 59.88 O c. 42.77 O d. 57.03 08.66.16
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
Related questions
Question
100%
Transcribed Image Text:The balance sheet and income statement shown below are for Koski 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.
Balance Sheet (Millions of $)
Assets
Cash and securities
Accounts receivable
Inventories
Total current assets
Net plant and equipment
Total assets
Liabilities and Equity
Accounts payable
Accruals
Notes payable
Total current liabilities
Long-term bonds
Total liabilities
Common stock
Retained earnings
Total common equity
Total liabilities and equity
Income Statement (Millions of $)
Net sales
Operating costs except depreciation
Depreciation
Earnings before interest and taxes (EBIT)
Less interest
Earnings before taxes (EBT)
Taxes
Net income
Other data:
Shares outstanding (millions)
Common dividends (millions of $)
Int rate on notes payable & L-T bonds
Federal plus state income tax rate
Year-end stock price
2019
$4,200
17,500
20,300
$42,000
$28,000
$70,000
$27,531
12,369
5,000
$44,900
$9,000
$53,900
$3,864
12,236
$16,100
$70,000
2019
$112,000
104,160
2,240
***
$5,600
840
$4,760
1,190
$3,570
500.00
$1249.50
6%
25%
$68.54
Refer to Exhibit 4.1. What is the firm's days sales outstanding? Assume a 365-day year for this calculation. Do not round your intermediate calculations.
O a. 51.90
O b. 59.88
O c. 42.77
O d. 57.03
Oe. 66.16
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 3 steps with 2 images
Recommended textbooks for you
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
Foundations Of Finance
Finance
ISBN:
9780134897264
Author:
KEOWN, Arthur J., Martin, John D., PETTY, J. William
Publisher:
Pearson,
Fundamentals of Financial Management (MindTap Cou…
Finance
ISBN:
9781337395250
Author:
Eugene F. Brigham, Joel F. Houston
Publisher:
Cengage Learning
Corporate Finance (The Mcgraw-hill/Irwin Series i…
Finance
ISBN:
9780077861759
Author:
Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor
Publisher:
McGraw-Hill Education