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 $) 2021 Assets Cash and securities $ 3,000 Accounts receivable 15,000 Inventories 18,000 Total current assets $ 36,000 Net plant and equipment 24,000 Total assets $ 60,000 Liabilities and Equity Accounts payable $ 15,004 Accruals 9,196 Notes payable 7,000 Total current liabilities $ 31,200 Long-term bonds 12,000 Total liabilities $ 43,200 Common stock 4,536 Retained earnings 12,264 Total common equity $ 16,800 Total liabilities and equity $ 60,000 Income Statement (Millions of $) 2021 Net sales $ 72,000 Operating costs except depreciation 66,960 Depreciation 1,920 Earnings before interest and taxes (EBIT) $ 3,120 Less interest 1,140 Earnings before taxes (EBT) $ 1,980 Taxes (25%) 495 Net income $ 1,485 Other data: Shares outstanding (millions) 500.00 Common dividends (millions of $) $519.75 Int. rate on notes payable & L-T bonds 6% Federal plus state income tax rate 25% Year-end stock price $35.64 What is the firm's ROA? Do not round your intermediate calculations. a. 4.13% b. 2.06% c. 2.47% d. 5.20% e. 3.30%
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 $) 2021 Assets Cash and securities $ 3,000 Accounts receivable 15,000 Inventories 18,000 Total current assets $ 36,000 Net plant and equipment 24,000 Total assets $ 60,000 Liabilities and Equity Accounts payable $ 15,004 Accruals 9,196 Notes payable 7,000 Total current liabilities $ 31,200 Long-term bonds 12,000 Total liabilities $ 43,200 Common stock 4,536 Retained earnings 12,264 Total common equity $ 16,800 Total liabilities and equity $ 60,000 Income Statement (Millions of $) 2021 Net sales $ 72,000 Operating costs except depreciation 66,960 Depreciation 1,920 Earnings before interest and taxes (EBIT) $ 3,120 Less interest 1,140 Earnings before taxes (EBT) $ 1,980 Taxes (25%) 495 Net income $ 1,485 Other data: Shares outstanding (millions) 500.00 Common dividends (millions of $) $519.75 Int. rate on notes payable & L-T bonds 6% Federal plus state income tax rate 25% Year-end stock price $35.64 What is the firm's ROA? Do not round your intermediate calculations. a. 4.13% b. 2.06% c. 2.47% d. 5.20% e. 3.30%
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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| Balance Sheet (Millions of $) | 2021 | |||
| Assets | ||||
| Cash and securities | $ | 3,000 | ||
| Accounts receivable | 15,000 | |||
| Inventories | 18,000 | |||
| Total current assets | $ | 36,000 | ||
| Net plant and equipment | 24,000 | |||
| Total assets | $ | 60,000 | ||
| Liabilities and Equity | ||||
| Accounts payable | $ | 15,004 | ||
| Accruals | 9,196 | |||
| Notes payable | 7,000 | |||
| Total current liabilities | $ | 31,200 | ||
| Long-term bonds | 12,000 | |||
| Total liabilities | $ | 43,200 | ||
| Common stock | 4,536 | |||
| 12,264 | ||||
| Total common equity | $ | 16,800 | ||
| Total liabilities and equity | $ | 60,000 | ||
| Income Statement (Millions of $) | 2021 | |||
| Net sales | $ | 72,000 | ||
| Operating costs except |
66,960 | |||
| Depreciation | 1,920 | |||
| Earnings before interest and taxes (EBIT) | $ | 3,120 | ||
| Less interest | 1,140 | |||
| Earnings before taxes (EBT) | $ | 1,980 | ||
| Taxes (25%) | 495 | |||
| Net income | $ | 1,485 | ||
| Other data: | ||||
| Shares outstanding (millions) | 500.00 | |||
| Common dividends (millions of $) | $519.75 | |||
| Int. rate on notes payable & L-T bonds | 6% | |||
| Federal plus state income tax rate | 25% | |||
| Year-end stock price | $35.64 |
What is the firm's
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