1. what is firm's profit margin?

2. what is the firm's EBITDA coverage?

3. what is the firm's days sales outstanding?

4. Assume a 360-day year for this calculation?

 

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Pettijohn Inc. Balance Sheet (Millions of $) Assets Cash and securities Accounts receivable Inventories Total current assets Net plant and equipment Total assets Liabilities and Equity Accounts payable Notes payable Accruals Total current liabilities Long-term bonds Total debt Common stock Retained earnings Total common equity Total liabilities and equity Income Statement (Millions of $) Net sales Operating costs except depr'n Depreciation Earnings before interest and taxes (EBIT) Less interest Earnings before taxes (EBT) Taxes Net income Other data: Shares outstanding (millions) Common dividends (millions) Interest rate on notes payable & L-T bonds Federal plus state income tax rate Year-end stock price Tax rate WACC 2017 244 7,530 10,980 18,754 17,990 36,744 6,990 5,320 4,120 16,430 10,920 27,350 3,360 6,034 9,394 36,744 2017 51,561 47,252 980 3,329 508 2,821 987 1,834 175.00 825.15 6.25% 0.35 55.00 35.00% 10.00% 2016 390 6,940 9,570 16,900 18,230 35,130 6,850 5,900 3,900 16,650 10,920 27,570 3,360 4,200 7,560 35,130 Pettijohn Inc. Balance Sheet (Millions of $) Assets Cash and securities Accounts receivable Inventories Total current assets Net plant and equipment Total assets Liabilities and Equity Accounts payable Notes payable Accruals Total current liabilities Long-term bonds Total debt Common stock Retained earnings Total common equity Total liabilities and equity Income Statement (Millions of $) Net sales Operating costs except depr'n Depreciation Earnings before interest and taxes (EBIT) Less interest Earnings before taxes (EBT) Taxes Net income Other data: Shares outstanding (millions) Common dividends (millions) Interest rate on notes payable & L-T bonds Federal plus state income tax rate Year-end stock price Tax rate WACC 2017 244 7,530 10,980 18,754 17,990 36,744 6,990 5,320 4,120 16,430 10,920 27,350 3,360 6,034 9,394 36,744 2017 51,561 47,252 980 3,329 508 2,821 987 1,834 175.00 825.15 6.25% 0.35 55.00 35.00% 10.00% 2016 390 6,940 9,570 16,900 18,230 35,130 6,850 5,900 3,900 16,650 10,920 27,570 3,360 4,200 7,560 35,130

Answer rating: 100% (QA)

2 2 To answer the questions we need to use the provided data from Pettijohn Incs balance sheet and i... View the full answer