Use the following financial sheets and information for all questions.
The balance sheet and income statement shown below are for Pettijohn 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.
Tax rate 40%
Stock price $17.00
Shares outstanding 3,800,000
Dividends are 50% of net income
Income Statement
Period Ending 31-Dec-13
Total Revenue 148,239,000
COGS 118,094,000
Selling General and Administrative 13,384,000
Depreciation 72,000
Earnings Before Interest And Taxes 16,689,000
Interest Expense 829,000
Income Before Tax 15,860,000
Income Tax Expense (40%) 6,344,000
Net Income 9,516,000
Balance Sheet
Date 31-Dec-13
Assets
Current Assets
Cash 14,468,000
Net Receivables 98,359,000
Inventory 18,758,000
Total Current Assets 131,585,000
Property Plant and Equipment 70,441,000
Total Assets 202,026,000
Liabilities
Current Liabilities
Accounts Payable 22,446,500
Accruals 14,315,500
Notes Payable 3,631,000
Total Current Liabilities 40,393,000
Long Term Debt 134,919,000
Total Liabilities 175,312,000
Stockholders' Equity
Common Stock 40,000
Retained Earnings 26,674,000
Total Stockholder Equity 26,714,000
Total Assets 202,026,000
Question/Problem 1)
1. What is the firm's current ratio?
2. What is the firm's days-sales-outstanding (DSO)? Assume a 360-day year for this calculation.
3. What is the firm's total assets turnover?
4. What is the firm's inventory turnover ratio?
5. What is the firm's TIE?
6. What is the firm's ROA?
7. What is the firm's basic earning power?
8. What is the firm's ROE?
9. What is the firm's P/E ratio?
10. What is the firm's market-to-book ratio?
Question/Problem 2)
Calculate the additional or external funds needed if the firm is expecting a growth rate of 10% next year. The firm is currently operating at 95% of capacity and the fixed assets can only by $10,000,000 increments.
Question/Problem 3)
Calculate the common size balance sheet and the common size income statement for the company.