Use the following information of Transylvania Railroad. • Long-term debt ratio:
ID: 2759543 • Letter: U
Question
Use the following information of Transylvania Railroad.
• Long-term debt ratio: .5.
• Times-interest-earned: 5.0.
• Current ratio: 1.6.
• Quick ratio: 1.0.
• Cash ratio: .3.
• Inventory turnover: 6.5.
• Receivables collection period: 36.5 days.
• Tax rate = .4.
Work out the missing entries. (Enter your answers in millions. Do not round intermediate calculations. Round balance sheet answers to 1 decimal place and income statement answers to 2 decimal places.)
Income Statement ($ in millions)
Balance Sheet ($ in millions)
Sales Cost of goods sold Selling, general and admin expenses 16.00 Depreciation 33.00 EBIT Interest Earnings before tax Tax Earnings available for common stockExplanation / Answer
Sales 521.50 Cost of goods sold 261.30 Selling, general and admin expenses 16 Depreciation 33 EBIT 211.20 Interest 42.24 Earnings before tax 168.96 Tax 67.58 Earnings available for common stock 101.38 Balance Sheet ($ in millions) 12-Dec 11-Dec Cash 24.0 33 Account Receivable 57.0 47.3 Inventory 49.0 31.4 Total Current assets 130.0 111.7 Fixed assets, net 118.0 123 Total: 248.0 234.7 Notes payable 43.0 21.3 Accounts Payable 38.0 16.3 Total current liabilities 81.0 37.6 Long-term debt 124.0 46.6 Equity 43.0 150.5 Total: 248.0 234.7 Long term debt ratio=Long term debt/Total Asset=0.50 Total Asset = 248 Long term debt = 124 Current Ratio= Current Asset/Current Laib= 1.60 Current Laibilities= 81.00 Current Asset= 129.60 Cash Ratio= Cash/ Current Liablities=0.30 Cash = 24 Quick ratio=Current Asset-Inventroy/Current liab=1 Current Asset -Inventory =81 Inventory= 49 Average Accounts receivable =(57+47.30)/2 52.15 Receivable collection period= 36.50 days Debtors Turnover =365/36.5 10 Average Accounts receivable =sales /10 52.15 Sales = 521.50 Inventory Turn over 6.50 Average Inventory=(49+31.4)/2 40.20 Average Inventory =COGS/6.5= 40.20 Cost of goods sold= 261.30 TIE =5 Interest = EBIT /5= 42.24