Question

The balance sheet and income statement shown below are for Koski 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 Sheet (Millions of $) Assets 2019 Cash and securities $4,200 17,500 Accounts receivable Inventories 20,300 Total current assets $42,000 $28,000 Net plant and equipment Total assets $70,000 Liabilities and Equity Accounts payable $27,531 Accruals 12,369 Notes payable 5,000 Total current liabilities $44,900 Long-term bonds $9,000 Total liabilities Common stock $53,900 $3,864 12,236 Retained earnings Total common equity $16,100 $70,000 Total liabilities and equity

Answer 1

Equity Multiplier (Assets/Equity) 4.35 =70000/16100

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