Use the following information for questions 7-10: 12/31/2012 2012 Current Assets
ID: 2624963 • Letter: U
Question
Use the following information for questions 7-10:
12/31/2012 2012
Current Assets XX Sales 9000
Fixed Assets XX COGS 6500
Total Assets 5000 Dep 700
EBIT 1800
Current Liabilities 500 Interest XX
Long Term Debt XX EBT XX
CommonEquity 2000 Taxes XX
Total 5000 Net Income XX
Dividends were 500, Capital Expenditures were 1,500, Ending Stock Price was $20 per share and there were 500 shares outstanding. Taxes are 40% of EBT.
2012 2012
Current Ratio 4 Profit Margin 10%
Debt Ratio .60 ROA XX
Times Int. Ern 6 BEP XX
FATO 3 P/E XX
TATO XX M/B XX
7. What is the firm's Total Asset Turnover Ratio?
8. What is the firm's Interest Expense?
9. What is the firm's Market to Book Ratio?
10. How much did the firm have in Fixed Assets at the end of the previous year (or the start of this year)?
Explanation / Answer
7. Total Asset Turnover Ratio = sales/totral assets = 9000/5000= 1.80
8.
Times Int. Ern = EBIT/Interest
Interest Expense = 1800/6 = $300
9. Market/book ratio = Market price per stock