PLEASE SHOW WORK ON ALL MATH PROBLEMS

3.2: INCOME STATEMENT Little Books Inc. recently reported $3 million of net income. Its EBITwas $6 million, and its tax rate was 40%. What was its interest expense? [Hint: Write out theheadings for an income statement, and fill in the known values. Then divide $3 million ofnet income by 1T 0 6 to find the pretax income. The difference between EBIT andtaxable income must be interest expense. Use this same procedure to complete similarproblems.]

3-3 INCOME STATEMENT Pearson Brothers recently reported an EBITDA of $7 5 million andnet income of $18 million. It had $2 0 million of interest expense, and its corporate tax ratewas 40%. What was its charge for depreciation and amortization?

3-12 STATEMENT OF CASH FLOWS W.C. Cycling had $55,000 in cash at year-end 2014 and$25,000 in cash at year-end 2015. The firm invested in property, plant, and equipmenttotaling $250,000. Cash flow from financing activities totaled$170,000.a. What was the cash flow from operating activities?b. If accruals increased by $25,000, receivables and inventories increased by $100,000,and depreciation and amortization totaled $10,000, what was the firmsnetincome?

4-2 DEBT TO CAPITAL RATIO Bartley Barstools has a market/book ratio equal to 1. Its stock priceis $14 per share and it has 5 million shares outstanding. The firms total capital is $125 millionand it finances with only debt and common equity. What is its debt-to-capital ratio?

4-4 MARKET/BOOK RATIO Jaster Jets has $10 billion in total assets. Its balance sheet shows$1 billion in current liabilities, $3 billion in long-term debt, and $6 billion in common equity.It has 800 million shares of common stock outstanding, and its stock price is $32 per share.What is Jasters market/book ratio?

4-5 PRICE/EARNINGS RATIO A company has an EPS of $2.00, a book value per share of $20,and a market/book ratio of 1.2. What is its P/E ratio?

4-15 RETURN ON EQUITY AND QUICK RATIO Lloyd Inc. has sales of $200,000, a net income of$15,000, and the following balance sheet:Cash $ 10,000 Accounts payable $ 30,000Receivables 50,000 Notes payable to bank20,000Inventories150,000 Total current liabilities $ 50,000Total current assets $210,000 Long-term debt 50,000Net fixed assets90,000 Common equity 200,000Total assets$300,000 Total liabilities and equity $300,000

The new owner thinks that inventories are excessive and can be lowered to the point wherethe current ratio is equal to the industry average, 2.5, without affecting sales or netincome. If inventories are sold and not replaced (thus reducing the current ratio to 2.5);if the funds generated are used to reduce common equity (stock can be repurchased at bookvalue); and if no other changes occur, by how much will the ROE change? What will be thefirms new quick ratio?