The balance sheet and income statement shown below for Pettijohn

Question : The balance sheet and income statement shown below for Pettijohn : 5586

The balance sheet and income statement shown below are for Pettijohn 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.

Tax rate       40%

Stock price   $17.00

Shares outstanding   3,800,000

Dividends are 50% of net income  

Income Statement  

Period Ending   31-Dec-13

Total Revenue    148,239,000

COGS       118,094,000

Selling General and Administrative   13,384,000

Depreciation   72,000

Earnings Before Interest And Taxes   16,689,000

Interest Expense   829,000

Income Before Tax   15,860,000

Income Tax Expense (40%)   6,344,000


Net Income    9,516,000

Balance Sheet

Date      31-Dec-13


Current Assets

   Cash   14,468,000

   Net Receivables   98,359,000

   Inventory   18,758,000

Total Current Assets    131,585,000


Property Plant and Equipment   70,441,000

Total Assets    202,026,000


Current Liabilities

   Accounts Payable   22,446,500

   Accruals   14,315,500

   Notes Payable   3,631,000

Total Current Liabilities    40,393,000


Long Term Debt   134,919,000

Total Liabilities    175,312,000

Stockholders' Equity

Common Stock   40,000

Retained Earnings   26,674,000


Total Stockholder Equity    26,714,000


Total Assets    202,026,000

Please answer the following question:

What is the firm's TIE?

What is the firm's ROA?

What is the firm's basic earning power?

What is the firm's ROE?

What is the firm's P/E ratio?

What is the firm's market-to-book ratio

Calculate the common size balance sheet and the common size income statement for the company.

5 (1 Ratings )

Finance 1 Year Ago 169 Views
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