Multi-part Problem
The balance sheet and income statement shown below are for Byrd Inc., and the data are to be used for the questions below.
Explain HOW the answers are obtained. The answers are indicated.
Note that the firm has no amortization charges, it does not lease any assets, and none of its debt must be retired during the next 5 years (notes payable will be rolled over).
BALANCE SHEET
|
Cash
|
$ 140.0
|
Accounts payable
|
$ 800.0
|
|
Accts. receivable
|
880.0
|
Notes payable
|
600.0
|
|
Inventories
|
1,320.0
|
Accruals
|
400.0
|
|
Total current assets
|
$2,340.0
|
Total current liabilities
|
$1,800.0
|
|
Long-term bonds
|
1,000.0
|
|
Total debt
|
$2,800.0
|
|
Common stock (50,000 shares)
|
200.0
|
|
Retained earnings
|
1,000.0
|
|
Net plant & equip.
|
1,660.0
|
Total common equity
|
$1,200.0
|
|
Total assets
|
$4,000.0
|
Total liabilities & equity
|
$4,000.0
|
INCOME STATEMENT
|
Net sales
|
$ 6,000.0
|
|
Operating costs
|
5,599.8
|
|
Depreciation
|
100.2
|
|
EBIT
|
$ 300.0
|
|
Less: Interest
|
96.0
|
|
EBT
|
$ 204.0
|
|
Less: Taxes
|
81.6
|
|
Net income
|
$ 122.4
|
OTHER DATA
|
Shares outstanding (millions)
|
60.00
|
|
Common dividends
|
$42.8
|
|
Interest rate on N/P and long-term bonds
|
6.0%
|
|
Federal plus state income tax rate
|
40%
|
|
Year-end stock price
|
$30.60
|
Calculating ratios given financial statements
[i]. What is the firm's EPS?
Calculating ratios given financial statements
[ii]. What is the firm's current ratio?
Calculating ratios given financial statements
[iii]. What is the firm's quick ratio?
Calculating ratios given financial statements
[iv]. What is the firm's ROA?
Calculating ratios given financial statements
[v]. What is the firm's ROE?
Calculating ratios given financial statements
[vi]. What is the firm's BEP?
Calculating ratios given financial statements
[vii]. What is the firm's TIE?
Calculating ratios given financial statements
[viii]. What is the firm's EBITDA coverage?
Calculating ratios given financial statements
[ix]. What is the firm's day sales outstanding?
Calculating ratios given financial statements
[x]. What is the firm's total assets turnover?
Calculating ratios given financial statements
[xi]. What is the firm's profit margin?
Calculating ratios given financial statements
[xii]. What is the firm's debt ratio?
Calculating ratios given financial statements
[xiii]. What is the firm's equity multiplier?
Calculating ratios given financial statements
[xiv]. What is the firm's inventory turnover?
Calculating ratios given financial statements
[xv]. What is the firm's dividends per share?
Calculating ratios given financial statements
[xvi]. What is the firm's cash flow per share?
Calculating ratios given financial statements
[xvii]. What is the firm's P/E ratio?
Calculating ratios given financial statements
[xviii]. What is the firm's book value per share?
Calculating ratios given financial statements
[xix]. What is the firm's market-to-book ratio?