Hermetic, Inc., Balance Sheet (as of December 31) Assets 2013 2014 Current asset
ID: 2773494 • Letter: H
Question
Hermetic, Inc., Balance Sheet (as of December 31)
Assets 2013 2014
Current assets
Cash $ 45 $ 50
Accounts receivable 270 290
Inventory 320 365
Total $ 635 $ 705
Fixed assets
Net plant and equipment 985 1100
Total assets $1620 $1805
Liabilities and equity 2002 2003
Current liabilities
Accounts payable $ 210 $ 260
Notes payable 110 175
Total $ 320 $ 435
Long-term debt 215 185
Stockholders’ equity
Common stock and paid-in surplus 290 290
Retained earnings 795 895
Total $1085 $1185
Total liabilities and equity $1620 $1805
Income Statement (2014)
Net sales $710.00
Cost of goods sold 480.00
Depreciation 30.00
Earnings before interest and taxes (EBIT) $200.00
Interest 20.00
Taxable income 180.00
Taxes 53.45
Net income $126.55
Retained earnings $100.00
Dividends 26.55
d) At the end of 2014, the firm had 100 shares of common stock outstanding and the stock price was $18 per share.
CALCULATE: EPS, DPS, P/E RATIO, MARKET-TO-BOOK RATIO, EBITDA RATIO, ROE, ROA, IGR, SGR, PROFIT MARGIN, TIMES INTEREST EARNED RATIO, DAYS IN SALES RECEIVABLE, TOTAL DEBT RATIO, TOTAL ASSETS TURNOVER, CURRENT RATIO.
Explanation / Answer
Amt $ Amt $ 2013 2014 Details Assets Current Assets Cash 45 50 Accounts Receivable 270 290 Inventory 320 365 Total Current Assets 635 705 Fixed Assets Net P&E 985 1100 Total Assets 1620 1805 Liab & Equities Current Laib Accounts Payable 210 260 Notes payable 110 175 Total Current Laib 320 435 Long term debt 215 185 Equity Common stock & paid in surplus 290 290 Retained earning 795 895 Total Liab & Equity 1620 1805 Income statement 2014 Net sales 710 COGS 480 Depreciation 30 EBIT 200 Interest 20 Taxable Income 180 Taxes 53.45 Net Income 126.55 Retained earning 100 Dividends 26.55 Outstanding shaeres 100 Price / share 18 Ratio Calculation Ratio/Amt $ 1 EPS =Net income/Outstanding shares 1.2655 2 DPS = Dividend paid/outstanding shares 0.2655 3 P/E ratio = market price per share/EPS 14.22 4 Market to Book ratio =Maket value of shares/book value of shares 6.21 5 EBIDTA ratio = (markt value o equity+market valueof debt)/EBIDTA =(1800+185)/230 = 8.630 6 ROE =Net profit/Equity 43.64% 7 ROA =Net profit/Total Assets 7.01% 8 IGR =Retained Earning/Net assets =100/290 = 34.5% 9 SGR =Retention ratio*ROE 34.5% 10 Profit Margin =Net Income/Sales 17.82% 11 Times Interest Earned =EBIT / Interest charge 10 12 Days sales receivable =Average AR*365/Net sales =[(270+290)/2*365]/710 144 13 Total Debt ratio =Total Liablities/Total Assets 0.584 14 Total Assets Turnover =Net sales/Total assets 39.34% 15 Current Rati =current assets/current laib 1.62