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Finance P3.15 Essay

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4/16/2010

Chapter 3.   Solution to 3-15

Joshua & White Technologies: December 31 Balance Sheets
(Thousands of Dollars)

Assets 2010 2009
Cash and cash equivalents $21,000 $20,000
Short-term investments 3,759 3,240
Accounts Receivable 52,500 48,000
Inventories 84,000 56,000
  Total current assets $161,259 $127,240
  Net fixed assets 218,400 200,000
Total assets $379,659 $327,240

Liabilities and equity
Accounts payable $33,600 $32,000
Accruals 12,600 12,000
Notes payable 19,929 6,480
  Total current liabilities $66,129 $50,480
Long-term debt 67,662 58,320
  Total liabilities $133,791 $108,800
Common stock 183,793 178,440
Retained Earnings 62,075 40,000
  Total common equity $245,868 $218,440
Total liabilities and equity $379,659 $327,240

Joshua & White Technologies December 31 Income Statements
(Thousands of Dollars)
2010 2009
Sales $420,000 $400,000
Expenses excluding depr. and amort. 327,600 320,000
  EBITDA $92,400 $80,000
Depreciation and Amortization 19,660 18,000
  EBIT $72,740 $62,000
Interest Expense 5,740 4,460
  EBT $67,000 $57,540
Taxes (40%) 26,800 23,016
  Net Income $40,200 $34,524

Common dividends $18,125 $17,262
Addition to retained earnings $22,075 $17,262

Other Data 2010 2009
Year-end Stock Price $90.00 $96.00
# of shares (Thousands) 4,052 4,000
Lease payment (Thousands of Dollars) $20,000 $20,000
Sinking fund payment (Thousands of Dollars) $0 $0

Ratio Analysis 2010 2009 Industry Avg
Liquidity Ratios
  Current Ratio 2.58
  Quick Ratio 1.53
Asset Management Ratios
  Inventory Turnover 7.69
  Days Sales Outstanding 47.45
  Fixed Assets Turnover 2.04
  Total Assets Turnover 1.23
Debt Management...

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Finance P3.15. Anti Essays. Retrieved December 19, 2018, from the World Wide Web: http://parimatchstavki7.com/free-essays/Finance-P3-15-187276.html