PIE Corporation Income Statement December 2010 in Millions Sales COGS Dep EBIT Interest paid Taxable income...
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PIE Corporation Income Statement December 2010 in Millions Sales COGS Dep EBIT Interest paid Taxable income Taxes (34%) Net income Dividends Addition to Retained Earnings 99 $47 $4,053 2,780 550 $723 502 $ 221 75 $ 146 PIE Corporation Balance Sheet December 2009 in Millions Current assets Cash Accounts receivable Inventory Total Fixed assets Net plant and equipment Total assets 2008 $ 210 355 507 2009 $ 215 310 328 $1,072 $ 853 Current liabilities Accounts payable Notes payable Total Long-term debt Owners' equity C. Stock and paid-in $6,085 $6,527 surplus Retained earnings Total $7,157 $7,380 Total liab & O Equity 2008 2009 $ 207 $ 298 1,715 1,427 $1,922 $1,725 $1,987 $2,308 $1,000 $1,000 2,248 2,347 $3,248 $3,347 $7,157 $7,380 Calculate the Financial Ratios based on the given balance sheets and income statements for 2009, also fully explain the kind of information the following financial ratios provide about a firm: a) Current ratio b) Quick ratio c) Cash ratio d) Inventory turnover e) Receivables turnover PIE Corporation Income Statement December 2010 in Millions Sales COGS Dep EBIT Interest paid Taxable income Taxes (34%) Net income Dividends Addition to Retained Earnings 99 $47 $4,053 2,780 550 $723 502 $ 221 75 $ 146 PIE Corporation Balance Sheet December 2009 in Millions Current assets Cash Accounts receivable Inventory Total Fixed assets Net plant and equipment Total assets 2008 $ 210 355 507 2009 $ 215 310 328 $1,072 $ 853 Current liabilities Accounts payable Notes payable Total Long-term debt Owners' equity C. Stock and paid-in $6,085 $6,527 surplus Retained earnings Total $7,157 $7,380 Total liab & O Equity 2008 2009 $ 207 $ 298 1,715 1,427 $1,922 $1,725 $1,987 $2,308 $1,000 $1,000 2,248 2,347 $3,248 $3,347 $7,157 $7,380 Calculate the Financial Ratios based on the given balance sheets and income statements for 2009, also fully explain the kind of information the following financial ratios provide about a firm: a) Current ratio b) Quick ratio c) Cash ratio d) Inventory turnover e) Receivables turnover
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The detailed answer for the above question is provided below A Current Ratio The current ratio is a financial ratio that measures a companys ability to cover its shortterm liabilities with its current ... View the full answer
Related Book For
Fundamentals of Advanced Accounting
ISBN: 978-0077667061
5th edition
Authors: Joe Ben Hoyle, Thomas Schaefer, Timothy Doupnik
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