Use the following financial statements for Manufacturing Inc. to compute the 1) DSO 2) TIE 3) ROE Manufacturing Inc. Balance Sheets, Income Statements and Additional Information for Year Ending December 31 (Millions of Dollars, Except for Per Share Data) Balance Sheet 2019 Assets Cash and equivalents $4,156.00 Accounts receivable $12,980.00 Inventories $8,920.00 Total current assets $26,056.00 Net property, plant & equipment (PP&E) $13,405.00 Total assets $39,461.00 Liabilities and Equity Accounts payable $7,410.00 Notes payable $5,460.00 Accruals $4,290.00 Total current liabilities $17,160.00 Long-term bonds $7,800.00 Total liabilities $24,960.00 Common stock $6,921.00 Retained earnings $7,580.00 Total common equity $14,501.00 Total liabilities and equity $39,461.00 Income Statement 2019 Net sales $68,500.00 COGS $40,000.00 Other operating costs $14,698.00 Depreciation $1,024.00 Earnings before interest and taxes (EBIT) $12,778.00 Less interest $829.00 Pre-tax earnings $11,949.00 Taxes (21%) $2,509.29 Net income available to common stockholders $9,439.71 Additional Information Common dividends $6,135.81 Addition to retained earnings $3,303.90 Number of common shares 1,500 Common stock price per share $98.00 Lease payments $5 Bonds' required sinking fund payments $40 Tax rate 21% WACC 22% Days

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter15: Financial Statement Analysis

Section: Chapter Questions

Problem 19BEA

Related questions

Question

Use the following financial statements for Manufacturing Inc. to compute the

1) DSO

2) TIE

3) ROE

Manufacturing Inc. Balance Sheets, Income Statements and Additional Information for Year Ending December 31
(Millions of Dollars, Except for Per Share Data)
Balance Sheet			2019
Assets
Cash and equivalents			$4,156.00
Accounts receivable			$12,980.00
Inventories			$8,920.00
Total current assets			$26,056.00
Net property, plant & equipment (PP&E)		$13,405.00
Total assets			$39,461.00

Liabilities and Equity
Accounts payable			$7,410.00
Notes payable			$5,460.00
Accruals			$4,290.00
Total current liabilities		$17,160.00
Long-term bonds			$7,800.00
Total liabilities			$24,960.00
Common stock			$6,921.00
Retained earnings			$7,580.00
Total common equity			$14,501.00
Total liabilities and equity			$39,461.00

Income Statement			2019
Net sales			$68,500.00
COGS			$40,000.00
Other operating costs			$14,698.00
Depreciation			$1,024.00
Earnings before interest and taxes (EBIT)		$12,778.00
Less interest			$829.00
Pre-tax earnings			$11,949.00
Taxes (21%)			$2,509.29
Net income available to common stockholders	$9,439.71

Additional Information
Common dividends			$6,135.81
Addition to retained earnings		$3,303.90
Number of common shares		1,500
Common stock price per share		$98.00
Lease payments			$5
Bonds' required sinking fund payments		$40
Tax rate			21%
WACC			22%
Days			365