Use the following financial statements for Lake of Egypt Marina to calculate and interpret the Altman's Z-score
Question:
Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial...
Transcribed Image Text:
Lake of Egypt Marina, Inc. Balance Sheet as of December 31,2018 and 2017 millions of dollars Assets 2018 2017 Liabilities and Equity 2018 2017 Current assets: Cuurent liabilities Cash andmarketable Accrued wages and S 75 65 115110 Accountspayable S 40 S 43 80 taxes Accounts receivable Inventory 90 Notes payable S 390 365 S 210 S 193 S 300 280 Total Total Fixed assets Long-term debt: Gross plant and equipment S 580 S 471 Stockholders' equity: Less: Depreciation Net plant and 110 100 Preferred stock (5 million shares) 5 S 5 s 470 S 371 paid-in surplus S 520 S 420 Retained eamings $ 910 785 Totalliabilities and equity Common stock and equipment 65 65 Other long-tem assets 50 49 (65 million shares) Total 330242 S 400 312 S910 S785 Total Totalassets Lake of Egypt Marina, Inc. Income Statement for Years Ending December 31,2018 and 2017 millions of dollars S515 S 432 S 232 S 212 $ 182 S 121 Net sales (all credit) Less: Cost of goods sold Less: De Eamings before interest andtaxes (EBIT $255 22 S233 preciation and other operating expenses efore taxes(EBT) $200 Eamings b Less: Taxes Net income Less: Preferred stock dividends Net income available to common stockholders Les $138 S 122 s: Common stock dividends Addition to retained eamings S 73 S 57 Per (common) share data Eamings per share (EPS) Dividends per share (DPS) Book value per share (BVPS) Market value (price) per share (MVPS) $2.123 $1.000 $6.077 $1.877 $1.000 $4.723 $12.550 9 $14.750
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 53% (15 reviews)
X1 Net working capitalTotal assets 390m 210 m 910m 01978 X2 Retained earningsTotal assets 3...View the full answer
Answered By
Fahmin Arakkal
Tutoring and Contributing expert question and answers to teachers and students.
Primarily oversees the Heat and Mass Transfer contents presented on websites and blogs.
Responsible for Creating, Editing, Updating all contents related Chemical Engineering in
latex language
4.40+
8+ Reviews
22+ Question Solved
Related Book For
Question Posted:
Students also viewed these Auditing questions
-
Use the following financial statements for Lake of Egypt Marina, Inc. LAKE OF EGYPT MARINA, INC. Balance Sheet as of December 31, 2021 and 2020 (in millions of dollars) 2021 2020 2021 2020 Assets...
-
Calculate the following ratios for Lake of Egypt Marina Inc. as of year-end 2016. Using these ratios for Lake of Egypt Marina, Inc., and the industry, what can you conclude about Lake of Egypt...
-
Use the following financial statements for Garners' Platoon Mental Health Care, Inc., to calculate and interpret the Altman's Z-score for this firm. Garners' Platoon Mental Health Care, Inc. Balance...
-
Consider the following population regression model: y = Bo + Bx + Bx2 + 3x3 + u Suppose you want to test whether 0.532 = 83. The hypotheses are: Ho : 0.582 = 33 H : 0.532 #33 The correct expression...
-
Airport Connection provides shuttle service between four hotels near a medical center and an international airport. Airport Connection uses two 10-passenger vans to offer 12 round trips per day. A...
-
Ironside Security Services is an investigative services firm that is owned and operated by Don Chadwell. On April 30, 2014, the end of the current fiscal year, the accountant for Ironside Security...
-
In Example 17.11, assume that the promised amounts to \(A\) and \(B\) are \(\$ 110\) and \(\$ 90\), respectively. Develop the new table of results. What are the prices of \(A\) and \(\mathrm{B}\) ?...
-
How do you calculate the percentage of change in sales from 20X8 to 20X9? This will go in cell D7? Show the formula. Kretsmart Common-Size Income Statements For the Years Ended December 31, 20'X'9,...
-
Determine the location of your virtual business. Every business needs an address for several reasons, even a virtual business. Determine what those reasons are and why you chose that location. Do not...
-
Consider the following transportation problem data for Baker Industries (these data are available in the Excel worksheet Baker Industries on MindTap): Use the techniques explained in Supplement E:...
-
WorldGone, Inc. declared bankruptcy on September 25, 2018 through a Chapter 7 filing. WorldGone's balance sheet at the time of the bankruptcy filing is listed below. The accrued wages were earned...
-
Disaster Airlines is a firm in severe financial distress. The firm can no longer pay its bills on time and it is far behind on payments to its banks and long-term debt holders. The firm has decided...
-
1. Assuming that Neil lives another 21 years (the life expectancy of a 60-year-old male), what is the economic value (at the beginning of 2009) of the reduced pension if money can earn 6% compounded...
-
This case demonstrates the adverse consequences that result when a pharmacist overzealously applies the corresponding responsibility doctrine without bothering to determine the facts. It also shows...
-
Suppose that the advent of employment websites enables job-seekers to find suitable jobs more quickly. What effect will this have on the unemployment rate over time? Also suppose that these websites...
-
In this case, the pharmacist, Hayes, has been charged with dispensing invalid prescriptions in violation of the corresponding responsibility doctrine. The government contends that Hayes should be...
-
Output in the economy of Erewhon has grown 3% per year over the past 30 years. The labor force has grown at 1% per year, and the quantity of physical capital has grown at 4% per year. The average...
-
Pharmacist Bob owns an independent community pharmacy that dispenses Medicaid prescriptions. Bob received a prescription for a brand name drug for which there are generic drug products available. The...
-
What performance improvement is offered by memory interleaving?
-
Find the reduced echelon form of each of the matrices given in Problems 120. c 1 26 + 4
-
To borrow $800, you are offered an add-on interest loan at 7 percent. Three loan payments are to be made, one at four months, another at eight months, and the last one at the end of the year. Compute...
-
Consider Gavin, a new freshman who has just received a Stafford student loan and started college. He plans to obtain the maximum loan from Stafford at the beginning of each year. Although Gavin does...
-
Consider that you are 35 years old and have just changed to a new job. You have $80,000 in the retirement plan from your former employer. You can roll that money into the retirement plan of the new...
-
calculate the payback period, internal rate of return, and net present value of the proposed mine
-
You need to choose between the following two design projects: year Cash flow A cash flow B 0 -$81,000 -$21,800 1 38,600 12,200 2 38,600 12,200 3 38,600 12,200 a) If the required return is 10 percent...
-
Home Furnish has bonds on the market with 13 years to maturity and a yield to maturity of 8.5.In the financial newspaper, Home Furnish bonds is quoted as 127.223% of par value. The bonds make...
Study smarter with the SolutionInn App