The balance sheet and income statement shown below are for Koski Inc. Note that the firm has no amortization charges, it does not lease any assets, none of its debt must be retired during the next 5 years, and the notes payable will be rolled over. Balance Sheet (Millions of $) Assets Cash and securities Accounts receivable Inventories Total current assets Net plant and equipment Total assets Liabilities and Equity Acco nts payable Accruals Notes payable Total current liabilities Long-term bonds Total liabilities Common stock Retained earnings Total common equity Total liabilities and equity Income Statement (Millions of $) Net sales Operating costs except depreciation Depreciation Earnings before interest and taxes (EBIT) Less interest Earnings before taxes (EBT) Taxes (25%) Net income 2021 $ 3,000 15,000 18,000 $36,000 24,000 $60,000 $20,100 9,900 7,000 $37,000 11,000 $48,000 2,520 9,480 $12,000 $60,000 2021 $96,000 89,280 1,920 $ 4,800 1,080 $ 3,720 930 $ 2,790 Other data: Shares outstanding (millions) Common dividends (millions of $) Int. rate on notes payable & L-T bonds Federal plus state income tax rate Year-end stock price What is the firm's return on invested capital? Do not round your intermediate calculations. 500.00 $976.50 6% 25% $66.96
The balance sheet and income statement shown below are for Koski Inc. Note that the firm has no amortization charges, it does not lease any assets, none of its debt must be retired during the next 5 years, and the notes payable will be rolled over. Balance Sheet (Millions of $) Assets Cash and securities Accounts receivable Inventories Total current assets Net plant and equipment Total assets Liabilities and Equity Acco nts payable Accruals Notes payable Total current liabilities Long-term bonds Total liabilities Common stock Retained earnings Total common equity Total liabilities and equity Income Statement (Millions of $) Net sales Operating costs except depreciation Depreciation Earnings before interest and taxes (EBIT) Less interest Earnings before taxes (EBT) Taxes (25%) Net income 2021 $ 3,000 15,000 18,000 $36,000 24,000 $60,000 $20,100 9,900 7,000 $37,000 11,000 $48,000 2,520 9,480 $12,000 $60,000 2021 $96,000 89,280 1,920 $ 4,800 1,080 $ 3,720 930 $ 2,790 Other data: Shares outstanding (millions) Common dividends (millions of $) Int. rate on notes payable & L-T bonds Federal plus state income tax rate Year-end stock price What is the firm's return on invested capital? Do not round your intermediate calculations. 500.00 $976.50 6% 25% $66.96
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Transcribed Image Text:The balance sheet and income statement shown below are for Koski Inc. Note that the firm has no amortization charges, it does not lease any assets, none of its debt must be retired during the next 5 years, and
the notes payable will be rolled over.
Balance Sheet (Millions of $)
Assets
Cash and securities
Accounts receivable
Inventories
Total current assets
Net plant and equipment
Total assets
Liabilities and Equity
Acco nts payable
Accruals
Notes payable
Total current liabilities
Long-term bonds
Total liabilities
Common stock
Retained earnings
Total common equity
Total liabilities and equity
Income Statement (Millions of $)
Net sales
Operating costs except depreciation
Depreciation
Earnings before interest and taxes (EBIT)
Less interest
Earnings before taxes (EBT)
Taxes (25%)
Net income
2021
$ 3,000
15,000
18,000
$36,000
24,000
$60,000
$20,100
9,900
7,000
$37,000
11,000
$48,000
2,520
9,480
$12,000
$60,000
2021
$96,000
89,280
1,920
$ 4,800
1,080
$ 3,720
930
$ 2,790
Other data:
Shares outstanding (millions)
Common dividends (millions of $)
Int. rate on notes payable & L-T bonds
Federal plus state income tax rate
Year-end stock price
What is the firm's return on invested capital? Do not round your intermediate calculations.
500.00
$976.50
6%
25%
$66.96
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