The Clark W Grizwald Holiday Company reported the following financial informatio
ID: 2438080 • Letter: T
Question
The Clark W Grizwald Holiday Company reported the following financial information for its most recent fiscal year: Income Statement, for Fiscal Year 2013 Complete the following table: (in millions) Revenues $2,500 Return on assets Cost of goods sold $1,000 Return on equity Selling, general, and administrative expenses $255 Gross profit margin Earnings before interest and taxes $1,245 Net profit margin Interest expense $75 Equity multiplier Earnings before taxes $1,170 Dividend yield Taxes $75 Debt-equity ratio Net income $1,095 Days sales outstanding Inventory turnover Balance Sheet, as of December 31, 2013 Receivables turnover (in millions) Cash and cash equivalents $65 Accounts receivable $55 Inventory $195 Net plant, property, and equipment $1,250 Intangible assets $100 Total assets $1,665 Current liabilities $165 Long-term debt $500 Shareholders' equity $1,350 Total liabilities and shareholders' equity $2,015 Additonal information available for the company is also available: (in millions) Market value of equity $700 Market value of debt $400 Dividends $30 Number of shares outstanding 10 The Clark W Grizwald Holiday Company reported the following financial information for its most recent fiscal year: Income Statement, for Fiscal Year 2013 Complete the following table: (in millions) Revenues $2,500 Return on assets Cost of goods sold $1,000 Return on equity Selling, general, and administrative expenses $255 Gross profit margin Earnings before interest and taxes $1,245 Net profit margin Interest expense $75 Equity multiplier Earnings before taxes $1,170 Dividend yield Taxes $75 Debt-equity ratio Net income $1,095 Days sales outstanding Inventory turnover Balance Sheet, as of December 31, 2013 Receivables turnover (in millions) Cash and cash equivalents $65 Accounts receivable $55 Inventory $195 Net plant, property, and equipment $1,250 Intangible assets $100 Total assets $1,665 Current liabilities $165 Long-term debt $500 Shareholders' equity $1,350 Total liabilities and shareholders' equity $2,015 Additonal information available for the company is also available: (in millions) Market value of equity $700 Market value of debt $400 Dividends $30 Number of shares outstanding 10Explanation / Answer
Ratio Formula Amounts(In $) Calculated Ratio Return on assets Net Income/Total assets 1095/1665 0.6577 Return on Equity Net Income/Shareholder's Equity 1095/1350 0.8111 Gross Profit Margin Gross Profit/Net Sales (2500-1000)/2500 0.6000 Net Profit Margin Net income/Net sales 1095/2500 0.4380 Equity Multiplier Total assets/Shareholders Equity 1665/1350 1.2333 Dividend Yield Annual Dividend/Current Stock price 30/70 0.4286 Debt-Equity Ratio Debt/Equity (165+500)/1350 0.4926 Days sales outstanding Days in accounting period/Receivable Turnover 365/(2500/55) 8.0300 Inventory Turnover Cost of goods sold/Inventory 1000/195 5.1282 Receivables Turnover Net Sales/Accounts Receivable 2500/55 45.4545