Question: 1 2 3 4 5 6 7 Question 25 (3 points) Listen Exhibit 4.1 The balance sheet and income statement shown below are for Koski

 1 2 3 4 5 6 7 Question 25 (3 points)Listen Exhibit 4.1 The balance sheet and income statement shown below are

1

for Koski Inc. Note that the firm has no amortization charges, it

2

does not lease any assets, none of its debt must be retired

3

during the next 5 years, and the notes payable will be rolled

4

over. Balance Sheet (Millions of S) 2021 Assets Cash and securities Accounts

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receivable Inventories Total current assets Net plant and equipment Total assets Liabilities

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and Equity Accounts payable Accruals Notes payable Total current liabilities $4,500 12,500

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13,000 $30,000 $20,000 $50,000 $13,330 8,170 6,000 $27,500 Long-term bonds Total liabilities

Question 25 (3 points) Listen Exhibit 4.1 The balance sheet and income statement shown below are for Koski Inc. Note that the firm has no amortization charges, it does not lease any assets, none of its debt must be retired during the next 5 years, and the notes payable will be rolled over. Balance Sheet (Millions of S) 2021 Assets Cash and securities Accounts receivable Inventories Total current assets Net plant and equipment Total assets Liabilities and Equity Accounts payable Accruals Notes payable Total current liabilities $4,500 12,500 13,000 $30,000 $20,000 $50,000 $13,330 8,170 6,000 $27,500 Long-term bonds Total liabilities Common stock Retained earnings Total common equity Total liabilities and equity Income Statement (Millions of $) Net sales Operating costs except depreciation Depreciation Earnings before interest and taxes (EBIT) Less interest Earnings before taxes (EBT) Taxes (25%) Net income Other data: Shares outstanding (millions) Common dividends (millions of 5) Int. rate on notes payable & L-T bonds Federal plus state income tax rate Year-end stock price $9,000 $36,500 $3,915 9,585 $13,500 $50,000 2021 $55,000 51,150 1,100 $2,750 900 $1,850 463 $1,388 500.00 $485.63 6% 25% $33.30 Refer to Exhibit 4.1. What is the firm's P/E ratio? Do not round your intermediate calculations. O a) 12.6 Ob) 14.6 O c) 13.9 O d) 13.2 O e) 12.0 Refer to Exhibit 4.1. What is the firm's ROE? Do not round your intermediate calculations. a) 12.23% b) 10.28% c) 9.25% d) 10.79% 12.85% O e) Refer to Exhibit 4.1. What is the firm's quick ratio? Do not round your intermediate calculations. a) 0.62 O b) b) 0.70 c) 0.51 d) 0.49 e) 0.75 Refer to Exhibit 4.1. What is the firm's current ratio? Do not round your intermediate calculations. O a) a) 1.09 b) 1.13 c) 0.89 d) 1.08 e) 1.36 Refer to Exhibit 4.1. What is the firm's operating margin? Do not round your intermediate calculations. O a) 6.10% b) 4.45% c) 6.25% d) 5.00% e) 5.65% Refer to Exhibit 4.1. What is the firm's days sales outstanding? Assume a 365-day year for this calculation. Do not round your intermediate calculations. a) 76.32 b) 72.17 c) 96.23 d) 101.20 e) 82.95 Refer to Exhibit 4.1. What is the firm's equity multiplier? Do not round your intermediate calculations. a) 4.26 b) 3.70 c) 4.15 d) 3.04 e) 3.30

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