Question: 3. The balance sheet and income statement shown below are for Byrd Inc, and the data are to be used for the following questions. Note
3. The balance sheet and income statement shown below are for Byrd Inc, and the data are to be used for the following questions. Note that the firm has no amortization charges, it does not lease any assets, and none of its debt must be retired during the next 5 years (notes payable will be rolled over). Assume a 360-day year. BALANCE SHEET (millions of dollars) Cash $ 140.0 Accounts payable $ 800.0 Accts receivable Notes payable Net plant & equip. 1,660.0 Accruals 400.0 Long-term bonds 1,000.0 ? 600,0 $2,800.0 200.0 1,000.0 $1,200.0 $4,000.0 Total debt Common stock Retained earnings Total common equity Total assets Total liabilities & equity INCOME STATEMENT (millions of dollars) Net sales $ 6,000.0 Operating costs 5,599.8 Depreciation 100.2 EBIT $ 300.0 Less: Interest 96.0 ? Less: Taxes (40%) ? Net income $ 122.4 OTHER DATA Shares outstanding (millions) 60.00 Common dividends (millions) $42.8 Interest rate on N/P and long-term bonds 6.0% Federal plus state income tax rate 40% Year-end stock price $30.60 What is the firm's EPS? What is the firm's current ratio? What is the firm's ROA? What is the firm's EBITDA coverage? What is the firm's equity multiplier? What is the meaning of each financial ratio you calculated above
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