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 (25%) Net income Other data: Shares outstanding (millions) Common dividends (millions of $) 2021 $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 2021 $112,000 104,160 2,240 5,600 840 $ $ 4,760 1,190 $ 3,570 500.00 $1,249.50 Int. rate on notes payable & L-T bonds 6% Federal plus state income tax rate 25% Year-end stock price $67.83 What is the firm's market-to-book ratio? Do not round your intermediate calculations.
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 (25%) Net income Other data: Shares outstanding (millions) Common dividends (millions of $) 2021 $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 2021 $112,000 104,160 2,240 5,600 840 $ $ 4,760 1,190 $ 3,570 500.00 $1,249.50 Int. rate on notes payable & L-T bonds 6% Federal plus state income tax rate 25% Year-end stock price $67.83 What is the firm's market-to-book ratio? Do not round your intermediate calculations.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
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 (25%)
Net income
Other data:
Shares outstanding (millions)
Common dividends (millions of $)
2021
$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
2021
$112,000
104,160
2,240
5,600
840
$
$ 4,760
1,190
$ 3,570
500.00
$1,249.50
Int. rate on notes payable & L-T bonds
6%
Federal plus state income tax rate
25%
Year-end stock price
$67.83
What is the firm's market-to-book ratio? Do not round your intermediate calculations.
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