Question

TABLE 2 Assets 2019 Liabilities and Stockholders' Equity 2020 2019 Current Assets Current Liabilities Cash 52 Accounts payable 100 Accounts receivable Notes payable / short- term debt 10 Inventories Current maturities of long-term debt Other current assets Other current liabilities Total current assets 167.0 Total current liabilities 156.0 143.0 Long-Term Assets Long-Term Liabilities Land 90 72 Long-term debt 110 99 - Buildings 110 90 Capital lease obligations Equipment 99 100 Less accumulated depreciation -52.25 -47.5 Deferred taxes 22.8 222 Net property, plant, and equipment 246.75 214.5 Other long-term liabilities Goodwill 50 - Total long-term 132.8 121.2 liabilities Other long-term assets 45 Total liabilities 288.8 264.2 Total long-term assets 346.75 259.5 Stockholders' Equity 234.0 122.5 Total Assets 522.8 386.7 Total liabilities and Stockholders' Equity 522.8 386.7

QUESTION 09

" Table 2 shows a balance sheet for a certain company. All quantities shown are in millions of dollars. What is the company's current ratio for 2020? Note: Express your answers in strictly numerical terms, and IN million of USDs."

QUESTION 10

1. " Table 2 shows a balance sheet for a certain company. All quantities shown are in millions of dollars. If in 2020 the corporation had 10 million shares outstanding and these shares are trading at $18 per share, then what is the company's enterprise value for 2020 (in million of USDs)? Note: Express your answers in strictly numerical terms, and IN million of USDs."

QUESTION 11

1. " Table 2 shows a balance sheet for a certain company. All quantities shown are in millions of dollars. What is the company's quick ratio for 2020? Note: Express your answers in strictly numerical terms, and IN million of USDs."

Answer 1

Answer is given below with working notes:

Current Ratio Current Assets Current Liabilities $176 $156 1.13 10 $180 (10 million shares X $18) $160 ($110+$40+$10) Enterprise value Market value of Equity Value of Debt Total Less: Cash and cash equivalents Enterprise value $340 $55 $285 Note: Debt includes interest bearing debt only (Long term + short tern Book value of debt is taken as market value 11 Quick Ratio Current Asset* Current Liabilities $130 $156 0.83 *Excluding Inventories and Other current assets