Use the information to answer the quiz questions. ABC Corporation Selected Financial Statement Information for the Year
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Question:
Use the information to answer the quiz questions.
ABC Corporation
Selected Financial Statement Information for the Year Ended December 31
(In millions except per share data)
Sales | $8,500 |
Cost of Goods Sold | -6,800 |
Gross Profit | 1,700 |
General & admin. expenses | -200 |
Depreciation expense | -500 |
Interest expense | -150 |
Income before tax | 850 |
Tax expense | -310 |
Net income | 540 |
Earnings per share | $2.84 |
20x 1 Beginning | 20x 1 Ending | |
Assets | ||
Cash | 360 | 380 |
Marketable Securities | 300 | 100 |
Receivables | 1,100 | 130 |
Inventories | 600 | 910 |
Other | 1,900 | 660 |
Total Current Assets | 4,260 | 2,180 |
Property, Plant, and Equipment | 5,230 | 3,400 |
Other assets | 2,300 | 1,000 |
Total Assets | $11,790 | $6,580 |
Liabilities and Shareholder’s Equity | ||
Accounts Payable | 2,800 | 1,300 |
Long-Term Debt | 2,400 | 900 |
Other Liabilities | 1,500 | 1,400 |
Total Liabilities | 6,700 | 3,600 |
8% Preferred Stock | 500 | 500 |
Common Stock | 2,000 | 1,800 |
Retained Earnings | 2,590 | 680 |
Total Liabilities & Shareholder’s Equity | $11,790 | $6,580 |
Required
Calculate the current ratio
Calculate inventory turnover at year’s end
Calculate gross profit margin on sales
Calculate the return on equity
Calculate the debt to asset ratio
Calculate the return on equity using the DuPont system
Related Book For
Financial Statement Analysis
ISBN: 978-0078110962
11th edition
Authors: K. R. Subramanyam, John Wild
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