Question

In: Finance

Q.333 The Endot Manufacturing Company, a manufacturer and wholesaler of widgets, has provided you with the...

Q.333 The Endot Manufacturing Company, a manufacturer and wholesaler of widgets, has provided you with the following financial information. The Company has asked you to make an analysis of the firm’s financial condition. In addition to the information given below, you have been informed that the firm has no lease payments but has principal payments of $2 million per year on its Long-term debt. Endot uses a 365-day year in preparing its ratios. Endot has 5,000,000 common shares outstanding. Endot’s financial statements are as follows:

Balance Sheet as of December 31, 2014 (Millions of Dollars)

Cash

45

Accounts Payable

45

Marketable Securities

33

Notes Payable

45

Accounts Receivable

66

Other Current Liabilities

21

Inventory

159

Total Current Liabilities

111

Total Current Assets

303

Total Long Term Liabilities

24

Total Liabilities

135

Gross Fixed Assets

225

Less Depreciation

78

Common Stock

114

Net Fixed Assets

147

Retained Earnings

201

Total Shareholder Equity

315

Total Assets

450

Total Liabilities and Equity

450

Statement of Income and Expenses for Year Ended December 31, 2014 (Millions of Dollars)

Net Sales

795.0

Costs of Goods Sold

660.0

Gross Profit

135.0

Fixed Expense

73.5

EBITDA

61.5

Depreciation Expense

12.0

EBIT

49.5

Interest Expense

4.5

EBT

45.0

Taxes (40%)

18.0

Net Income

27.0

What was Endot's Quick (Acid Test) Ratio?

a. 0.37

b. 1.30

c. 1.73

d. 2.00

e. 2.73

Q 388 The Endot Manufacturing Company, a manufacturer and wholesaler of widgets, has provided you with the following financial information. The Company has asked you to make an analysis of the firm’s financial condition. In addition to the information given below, you have been informed that the firm has no lease payments but has principal payments of $2 million per year on its Long-term debt. Endot uses a 365-day year in preparing its ratios. Endot has 5,000,000 common shares outstanding. Endot’s financial statements are as follows:

Balance Sheet as of December 31, 2014 (Millions of Dollars)

Cash

45

Accounts Payable

45

Marketable Securities

33

Notes Payable

45

Accounts Receivable

66

Other Current Liabilities

21

Inventory

159

Total Current Liabilities

111

Total Current Assets

303

Total Long Term Liabilities

24

Total Liabilities

135

Gross Fixed Assets

225

Less Depreciation

78

Common Stock

114

Net Fixed Assets

147

Retained Earnings

201

Total Shareholder Equity

315

Total Assets

450

Total Liabilities and Equity

450

Statement of Income and Expenses for Year Ended December 31, 2014 (Millions of Dollars)

Net Sales

795.0

Costs of Goods Sold

660.0

Gross Profit

135.0

Fixed Expense

73.5

EBITDA

61.5

Depreciation Expense

12.0

EBIT

49.5

Interest Expense

4.5

EBT

45.0

Taxes (40%)

18.0

Net Income

27.0

If Endot's common stock is currently selling for $104.49 per share, what is Endot's Price to Earnings Ratio?

a.

580.5X

b.

104.49X

c.

41.8X

d.

19.35X

e.

It is impossible to determine the P/E ratio from the information given

Expert Solution

jeff jeffy answered 2 hours ago

The manufacturing supervisor of Clay Stone Manufacturing Company has provided you with the details of manufacturing...

The manufacturing supervisor of Clay Stone Manufacturing Company has provided you with the details of manufacturing cost related to three processes - mixing, drying, and painting. The product of a company passes through three distinct processes to completion. 12,000 units have been issued to process mixing. The output of each process: Mixing:11,000 units Drying: 10,000 units Painting: 9,000 units. The normal loss incurred in each process is as follows: Mixing is 6% and the scrap value is RO 12 per...

The founder of X company , a manufacturer of fine fishing supplies, has provided you the...

The founder of X company , a manufacturer of fine fishing supplies, has provided you the following information from his company's accounting records. From the information presented, prepare a properly formatted, multi-step Income Statement (be sure to show intermediate profit lines - Gross Profit, EBITDA, NOI, EBIT, EBT and NI - as necessary). Per share presentation of income data is not being requested. Balance sheet account information is as of the close of business for December 31, 2017 unless otherwise...

The CFO for Fin Tackle Company, a manufacturer of fine fishing supplies, has provided you the...

The CFO for Fin Tackle Company, a manufacturer of fine fishing supplies, has provided you the following information from his company's accounting records. From the information presented, prepare a properly formatted, multi-step Income Statement (be sure to show intermediate profit lines - Gross Profit, EBITDA, NOI, EBIT, EBT and NI - as necessary). Per share presentation of income data is not being requested. Balance sheet account information is as of the close of business for December 31, 2017 unless otherwise...

a widget manufacturing company makes big widgets and small widgets. Each widget must processed in a...

a widget manufacturing company makes big widgets and small widgets. Each widget must processed in a wood shop and in a paint shop. It takes 480 minutes of process time per work day per shop. If the paint shop paints only small widgets, then 60 can be painted per day. If the paint shop paints large widgets only then 40 can be painted per day. If the wood shop only process large widgets only then it could process 50 widgets...

Q 1 A MANUFACTURING FIRM PRODUCES LEFT AND RIGHT WIDGETS. THE LEFT WIDGET FREQUENCY DISTRIBUTION...

Q 1 A MANUFACTURING FIRM PRODUCES LEFT AND RIGHT WIDGETS. THE LEFT WIDGET FREQUENCY DISTRIBUTION IS SHOWN HEREIN, AS IS THE RIGHT WIDGET FREQUENCY DISTRIBITON IS ALSO INCLUDED. CLASSES ARE PROVIDED, FREQENCIES ARE SHOWN , SOLVE EACH FOR THE FOLLOWING: MEAN, MEDIAN CLASS, MODAL CLASS, POPULATION AND SAMPLE STANDARD DEVIATIONS....

Marcie is the manager at We-B-Widgets, a manufacturing company started by her grandfather that has been...

Marcie is the manager at We-B-Widgets, a manufacturing company started by her grandfather that has been passed down to her through the family. She wants to improve the efficiency of operations and have her employees take ownership of the Widgets they produce. As a result, Marcie has decided that she will establish self-directed work teams across the production process. Identify and describe the stages that Marcie’s teams will go through. In addition, identify specific things that Marcie can do as...

Assume that your widget manufacturing company has a total annual demand of N widgets per year...

Assume that your widget manufacturing company has a total annual demand of N widgets per year evenly distributed across the year. Each widget cost $b dollars in material and manufacturing costs to make. Every time you do a production run to make some widgets, you incur a set-up cost of P dollars. Any widgets awaiting sale must be stored and thus incur an average storage fee of c dollars per widget per year. Let x be the size of each...

A small monopoly manufacturer of widgets has a constant marginal cost of $15 . The demand...

A small monopoly manufacturer of widgets has a constant marginal cost of $15 . The demand for this firm's widgets is Q equals 105 minus 1 P . Given the above information, compute the social cost of this firm's monopoly power. The social cost is $ . (Round your response to the nearest penny.)

Problem 1 Haram Corporation is a wholesaler that sells a single product. Management has provided the...

Problem 1 Haram Corporation is a wholesaler that sells a single product. Management has provided the following cost data for two levels of monthly sales volume. The company sells the product for $182.10 per unit. Year 1 Year 2 Year 3 Sales volume (units) 60,000 80,000 110,000 Sales $2,100,000 $2,800,000 $3,850,000 Expenses: Cost of Goods Sold (840,000) (1,120,000) (1,540,000) Salaries (520,000) (680,000) (920,000) Rent (50,000) ( 50,000) ( 50,000)...

Laci Corporation’s is a wholesaler that sells a single product. Management has provided the following cost...

Laci Corporation’s is a wholesaler that sells a single product. Management has provided the following cost data for two levels of monthly sales volume. The company sells the product for $154.00 per unit. Sales volume (units) 11,200 12,230 Cost of sales $907,200 $990,630 Selling and administrative costs $674,000 $695,630 The best estimate of the total contribution margin when 11,580 units are sold is: $307,160 $716,190 $226,770 $602,160