Dummy

BUS 630 Quiz number 2
Student name:
Instructions:
1. Attempt all question
1. The completed test is due by midnight Sunday PST
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) (Worth 50 points)
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) (Worth 30 points)
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...