Find below the financial data for Garden Co. 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 365-day year. GARDEN CO. BALANCE SHEET (millions of dollars) Cash $ 140.0 Accounts payable $ 800.0 Accts. receivable 880.0 Notes payable 600.0 Inventories 1,320.0 Accruals 400.0 Total current $2,340.0 Total current liabilities $1,800.0 assets Long-term bonds 1.000.0 Total debt $2,800.0 Common stock 200.0 Retained earnings 1.000.0 Net plant & equip. 1,660.0 Total common equity $1,200.0 Total assets $4,000.0 Total liabilities & equity $4,000.0 OTHER DATA Credit torn - 60 days Sales- $ 6,050.0 Depreciation expense = $ 100.2 Operating income - $ 300.0 Interest expense - $96.0 Net income - $ 122.B Shares outstanding (millions) Common dividends (millions) Interest rate on N/P and long-term bonds Federal plus state income tax rate Market Stock price 61.00 $42.8 6.01 401 $30.60 Ratio Days sales outstanding Inventory Turnover Fixed Asset Turnover Total Asset Tumover Price to Earnings Price to cash flow Market to book value Industry Average 65 days 3.5x 2.5x 1.0 17x 10.12 1.2x a Calculate the firm's Tumover ratios and Market value ratios. b. Analyze the following ratios and outline the firm's strengths and weaknesses as revealed by your analysis L. Asset utilization II. Market value ratios Question 3 (15 marks) FOR THE FOLLOWING QUESTION USE BA II PLUS FINANCIAL CALCULATOR. MENTION ALL KEYSINO MARKS GIVEN IF KEYS ARE NOT MENTIONED. MAKE A TIME-LINE! 1. (a). Suppose Punjab's population is 36.5 million people and its population is expected to grow at a rate of 4% annually. How long will it take for the population to double? (b). How long will it take for the population to double if the growth rate is 2% (c). Analyze the above scenario. II. (a). A college student is 26 years old and a recent graduate. He wants to start saving for his retirement. Currently he has S 1000 balance in account. He plans to save $2000 per year in an online stock account that pays annual return of 9.5%. If he sticks to the plan, how much money will he have at the age of 66? (hint: N will be the number of years he saves for his retirement. He started saving at the age of 26 till 66). (b). Suppose he starts saving for the retirement at the age of 20. If he uses the same plan above, how much money will be have at the age of 662 (c). What advice regarding savings will you give to the college graduate? (Analyze and interpret the findings above), Find below the financial data for Garden Co. 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 365-day year. GARDEN CO. BALANCE SHEET (millions of dollars) Cash $ 140.0 Accounts payable $ 800.0 Accts. receivable 880.0 Notes payable 600.0 Inventories 1,320.0 Accruals 400.0 Total current $2,340.0 Total current liabilities $1,800.0 assets Long-term bonds 1,000.0 Total debt $2,800.0 Common stock 200.0 Retained earnings 1,000.0 Net plant & equip. 1,660.0 Total common equity $1,200.0 Total assets $4,000.0 Total liabilities & equity $4,000.0 OTHER DATA Credit term - 60 days Sales - $ 6,050.0 Depreciation expense - $ 100.2 Operating income - $ 300.0 Interest expense - $ 96.0 Net income - $ 122.8 Shares outstanding (millions) Common dividends (millions) Interest rate on N/P and long-term bonds Federal plus state income tax rate Market Stock price 61.00 $42.8 6.0% 40% $30.60 Ratio Industry Average Days sales outstanding 65 days Inventory Turnover 3.5x Fixed Asset Turnover 2.5x Total Asset Turnover 1.OX Price to Earnings 17x Price to cash flow 10.12x Market to book value 1.2x a. Calculate the firm's Turnover ratios and Market value ratios. b. Analyze the following ratios and outline the firm's strengths and weaknesses as revealed by your analysis : I. Asset utilization II. Market value ratios