Question

what is the firm's BEP?

what is the firm's current ratio?

what is the firm's days sales outstanding? assume a 365 day year for this calculation

what is the firm's EPS?

what is the firm's equity multiplier?

what is the firm's market-to-book ratio?

The balance sheet and income statement shown below are for Sneaker 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 Shest (Millions of 5) Assets Cash and securities Accounts receivable Inventories Total current assets Net plant and equipment Total assets Liabilities and Equity Accounts payable Accruals Notes payable 2019 $ 2,500 11,500 16,000 $30,000 $20.000 $50,000 $ 9,500 5,500 2.000 $22,000 Total current liabilities SI5.000 $37.000 $ 2,000 Long-term bonds Total liabilities Common stock Retained earnings Total common equity Total liabilities and equity SID $50,000 Income Statement Millions or Net sales Operating costs except depreciation Depreciation Earnings befinterest and taxes (EBIT) Less interest Earnings before taxes (EBT) Taxes Net income 2019 $87.500 81.813 1531 S 4.156 1375 S 2.781 SINOS Shares outstanding (millions) Common dividends Intrate on notes payable & L-T bonds Federal plus state income tax rate 500,00 $632.73 6.25% 3594 S43.39 Year-end stock price

Answer 1

1. BEP (Basic Earnings Power)=EBIT/Total assets=4156/50000=8.31% (0.0831)

2. Current ratio=Total Current assets/Total current liabilities=30,000/22,000=1.36

3. Days sales outstanding=(accounts receivables/Sales)*365=(11500/87500)*365=48 days

4. EPS (Earnings per share)=Net Income/Total otstanding shares=1808/500=3.62

5. Equity Multiplier=Total assets/Total common equity=50,000/13,000=3.85

6. Market to Book ratio=Year end stock price/(Total common equity/Shares outstanding)=43.39/(13,000/500)=43.39/26=1.67