The balance sheet and income statement shown below are for Byrd Inc.

BALANCE SHEET

Cash $ 140.0 Accounts payable $800.0

Accts. Receivable 880.0 Notes payable ` 600.0

Inventories 1,320.0 Accruals 400.0

Total current assets 2,340.0 Total current liabilities 1,800.0

Long-term bonds 1,000.0

Total debt 2,800.0

Common stock 200.0 (50,000 shares)

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

INCOME STATEMENT

Net sales $6,000.0

Operating costs 5,599.8

Depreciation 100.2

EBIT $ 300.0

Less: Interest 96.0

EBT $ 204.0

Less: Taxes 81.6

Net income $ 122.4

Account balances in financial statements are in thousands.

Required:

a) Construct the DuPont Identity and explain its significance.

b) Calculate the earnings per share and explain its significance.

c) Calculate the current ratio and explain its significance.

d) Calculate the inventory holding period and explain its significance.